Historical retrospective · DeFi
COMP brought token-based governance into the DeFi spotlight
Compound’s COMP governance token enabled holders to propose and vote on protocol changes under defined governance rules.
The model made decision-making more visible and potentially more participatory, while linking influence to token distribution and delegation.
The 2020 launch helped catalyze the “DeFi Summer” attention cycle around liquidity incentives and governance tokens.
Token voting creates its own concentration and voter-participation problems; formal governance does not ensure broad representation.
Primary source
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