COMP is the governance token of the Compound protocol.
COMP is a low-cap asset that represents the protocol's native governance or utility token. This asset is exposed to the underlying risks of Compound, a protocol rated as Solid. The asset has a fixed supply.
COMP is highly correlated to the overall market.
The COMP token currently only can propose and vote on changes to the protocol. COMP holders govern the future direction of the platform through community voting on network decisions like the number of COMP rewards to lenders and borrowers and the types of assets accepted as collateral.
COMP launched with a fixed supply of 10M tokens. The token distribution is as follows: ~4.2M reserved for users of the protocol (over 4 years), ~2.4M to shareholders of Compound Labs, ~2.2M to founders and team (subject to 4-year vesting), ~0.3M for future team members, and ~0.8M allocated for the community to advance governance through other mechanisms.
Compound currently does not have a direct or indirect revenue accrual mechanism. There is no actual use for the token besides its use for governance and as a means to bootstrap user demand through yield farming incentives. The ongoing adoption of Compound is expected to accrue value to token holders through positive price impacts. A future governance vote may redirect a portion of protocol fees to COMP holders.