The Top Coins Is Here To Serve You If You…

You want info about  Crypto

We make buying the right Crypto for you as simple as possible.

What is Compound Governance Token and What Makes It Unique?

16 Oct 2020

Reading Time: 4 minutes


“Compound is a protocol built on the Ethereum blockchain to create Interest Rate Markets for Ethereum Tokens” Robert Leshner (Founder of Compound) 

Compound Governance Token (Compound Coin) is an ERC-20 asset token that will run on the Ethereum Network. 

What makes this crypto coin interesting is that it really is doing something ahead of its time and is a big contender in the functionality of Decentralised Finance in a true David VS Goliath move.

Let me ask you.. 

Have you ever experienced the inconvenient “Terms and Conditions” of High Interest Accounts?  

To accumulate Interest, you suspend your access to your own deposited funds for a set period of time. However, with Compound Governance Token (Compound Coin) this dilemma becomes a thing of the past. 

So I can keep accumulating interest with Compound Coin and have access to my digital currency when I need it? 

With Compound Governance Coin, you get to accumulate interest while still having access and use of your Digital Currency when you need it most at no loss to you! 

Created by Compound Finance Team, the Compound Governance Token is taking a step towards recreating Lending Protocols. Compound Governance will ultimately work on a Delegated Proof of Stake model, much like EOS, Lisk, Steem or Bitshares.

Instead of the administrators holding the power, Compound Lending Protocols are through community governance. The goal is that Compound Governance Token will be allowing its users to Create Suggestions, Implement Changes and even debate changes just by utilizing the Compound lending platform.  

Don’t feel confident making decisions yourself? You can transfer your voting rights to another user's wallet or a DeFi (Decentralised Finance) expert. 


What changes can be Voted on?

Changes can include 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. The intention is for Compound to eventually become a Decentralized Autonomous Organization in the future. 


What is the Process of Putting an Idea Forward to Being Implemented?

Idea Brought Forward for voting

  • A 3 Day period for all COMP owners or delegates to vote on the proposition.  

  • Once it has obtained 4% quorum with majority support, the proposal is queued in a Time lock, and can be implemented after 2 days. 

  • 2 day time period is enforced so users who are not in agreement can  withdraw their positions from Compound if they choose to before the changes are implemented. 


"My personal belief is that nobody would use bitcoin if it was run by the ‘Bitcoin Corporation,’” Robert Leshner, Compound’s founder.

How do the Interest Rates of Compound Coin Work?

With traditional finance and centralised banks, suppliers and borrowers negotiate over the terms and rates to come to an agreement on a set term and interest rate. For example, a bank will give you on average 2% return p/a on your funds. With Decentralised Finance, this can be variable but is said to offer on average around 8% p/a.   

As a borrower, you can take a loan by locking your cryptocurrency into protocol interest rates paid and received which is determined by the Supply and Demand” of Compound Coin.  This is based upon the number of blocks mined. 

Following economic theory, loan fees should increment as a function of demand; when demand is low, loan fees ought to be low, and vice versa.


Final Thoughts 

When I first started to look into Compound Coin, I thought it was nothing special by comparison to other Cryptocurrencies available. Now in understanding the usability of this Cryptocurrency and the value of Decentralised Finance Protocols and Smart Contracts, tied into the Ethereum Network, this is a big contender with huge potential. It takes a lot to be out there competing with Traditional Finance and Central Banks and Compound Coin is doing it! 


What are your thoughts on Compound Coin? 


Leave a Reply

Add comment

Special Offer For Those Interested in Bitcoin.

The Peoples Reserve is CODED To The Last Highest Price of Gold.
It does NOT go down in value. It Can ONLY Rise in Value.
...When Gold Hits a NEW HIGH Price. (which it is often now)

How Is This Possible?
With Digital Currency (including Bitcoin) - We Are Given The Opportunity To CODE RULES & Parameters.
Just as Bitcoin is CODED to have the supply of Bitcoin cut in half (the halving it's called) The Peoples Reserve is CODED so that the value can ONLY move when there is a new high price in Gold.

The Peoples Reserve has it's own unique wallet and that wallet manufactures (digital cloud mining) new coins for you at a rate of 12% per year.
That 12% per year is calculated daily so acts like compounding interest for you.

THAT SHOULD EXCITE YOU - BECAUSE...
The banks get wealthy by charging us COMPOUNDING Interest. Not Just 'interest' but COMPOUNDING Interest.
COMPOUNDING - is the greatest wealth creation vehicle available to us.
And for the first time ever...

You can receive 12% Compounding on a coin that is CODED to the last highest price of Gold.
SPECIAL OFFER:
As someone Interested in Bitcoin and crypto Currency and as a visitor to our new site we want to help you experience...
COMPOUNDING.

STABILITY (Versus Crypto Volatility)
You can purchase as much as $5000 worth of The Peoples Reserve at 50% off (just $2500) - so a savings of $2500 to you.
We simply can NOT make this offer for an extended period of time. It can NOT last long and once again...
Is available to you exclusively as a new visitor to The Top Coins.

Fresh Content

Just add your email and hit subscribe to stay up to date.