The decentralized finance (DeFi) money market protocol Compound has officially activated its governance token COMP, marking a significant step toward full decentralization. Coinbase Custody, a subsidiary of Coinbase, has extended support for Compound's governance framework, including custody services for COMP and related cTokens.
Key Developments
COMP Token Activation
- Initial Proposal: The COMP governance token concept was first introduced in February 2020.
- Funding Background: Compound secured $25 million in Series A funding in November 2019.
- Current Metrics: According to Loanscan, Compound's outstanding debt exceeds $24 million.
Decentralization Roadmap
CEO Robert Leshner emphasized a gradual decentralization process, transitioning from centralized management to community-driven governance. As of today, COMP token holders can actively participate in protocol decisions through proposals and voting.
Coinbase Custody Integration
Coinbase Custody now supports:
- COMP governance tokens and cTokens (cETH, cZRX, cUSDC, cBAT, cDAI).
- Governance features: Clients can view/vote on proposals and delegate voting rights via Coinbase's web app.
- Asset Management: Deposits and withdrawals for Compound balances are now enabled.
👉 Explore DeFi governance tools
FAQs
Q: When was COMP first announced?
A: The token was proposed in late February 2020 as part of Compound's decentralization strategy.
Q: What services does Coinbase Custody provide for COMP?
A: It offers secure storage, governance participation, and asset management for COMP and cTokens.
Q: Can I trade COMP on Coinbase currently?
A: No, COMP is not yet listed on Coinbase's trading platform despite custody support.
Q: How does COMP governance work?
A: Token holders submit and vote on proposals to upgrade or modify the Compound protocol.
👉 Learn about DeFi custody solutions
Keywords
- Compound (COMP)
- DeFi governance
- Coinbase Custody
- cTokens
- Decentralized finance
- Money market protocol
- Robert Leshner
- COMP tokenomics
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