What is the governance structure of Compound?

The governance structure of Compound is designed to be decentralized and community-driven. At its core, governance is facilitated by COMP token holders, who can submit proposals and vote on various changes to the protocol. The COMP token serves as both a means of participation in governance and an incentive for users to engage with the platform. COMP holders can propose changes that range from protocol upgrades, parameter adjustments, or even changes to the underlying risk models. Each proposal requires a minimum amount of COMP to be staked to be considered, ensuring that only those with a vested interest in the success of Compound can influence its direction. Voting takes place in multiple stages, typically involving an initial voting period followed by a phase where the approved proposals are implemented after achieving a quorum. This structure promotes a democratic approach, allowing users to align the protocol's development with the interests of the broader community. In addition to the direct influence provided by the COMP token, the governance model encourages active community engagement through discussions and participation in decision-making processes. Users interested in the latest developments or governance proposals can often find relevant information on the official Compound website, where updates and resources are periodically published.