February 26, 2020 Compound announces governance token and plan to transition to community led decision making.

Compound, a non-custodial lending protocol, announced Wednesday its plans for transitioning to a more community-led decision making process. The proposed system varies from other designs in that governance actions are proposed by token holders as executable code; “anybody with 1% of COMP delegated to their address can propose a governance action; these are simple or complex sets of actions, such as adding support for a new asset, changing an asset’s collateral factor, changing a market’s interest rate model, or changing any other parameter or variable of the protocol that the current administrator can modify.”