Compound

Summary

As Robert Leshner mentioned in his forum post, the community now has the power to control COMP distribution across markets after Gauntlet’s recent proposal (#33). This will allow the protocol to better and more efficiently manage how COMP is used to improve and further the protocol’s interests. Given that the initial COMP distribution numbers were set somewhat arbitrarily, it has become clear that it is worth resetting the parameters based on usage over the last six months. The refreshed numbers proposed will be used for A/B testing optimal COMP emission quantities in future proposals.

In a comp.xyz forum post, Robert and Sirokko have put forth reasonable suggestions that we believe would improve upon the existing values. Both of their values for COMP distribution were quite similar and we chose Sirokko’s numbers for two reasons:

1. All markets are given a fixed quantity (10% of rewards spread evenly across the 9 active markets) of COMP rewards
2. Splitting each market’s COMP rewards into a fixed quantity (common to all markets) and a variable quantity makes it easy to analyze improvements in future A/B tests for incentives

Please read the forum post for more details.

Acknowledgments

• Robert Leshner: For starting the discussion and putting out the first distribution numbers
• Sirokko: For providing a coherent methodology for this refresh
• Hsien-Tang Kao: For analyzing 1-step recursive borrowing in existing markets

References

• Forum post