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Compound Staking is widely discussed after the new product release after the scandal connected to $24 million token distribution. Controversies arose in the community over the distribution of 499 000 COMP tokens to a yield-bearing protocol introduced by Humpy and his Golden Boys group. On July 30, Humpy said Proposal 289 was aborted to focus on the project as “a yield-bearing asset. ” Within minutes, COMP surged to around $51 from around $47, contrary to a falling market as observed by news sources.
Compound Staking Launches with 30% Annual Rewards
Former executives of Compound say that the settlement with Humpy led to the development of the new product called Compound Staking, shared Bryan Colligan. This product will distribute 30% of market reserves from the existing and newly established markets for the annual net sales proportionally to holders relative to their stakes. As Colligan said, “These Staking Rewards will be issued to markets on Compound in the same way that markets on Compound are currently propped up based on advice from Gauntlet on incentive rates, accompanying the act of staking $COMP v1 on Compound. ”
The compound staking product will be a new product introduced, which will be governed by the Compound DAO. It will be audited by a preferred security partner as well as be subjected to regular check by the DAO Market risk Manager. This kind of strategy is to seek the objective of preventing any ambiguous or insecure situation in the process of staking rewards distribution and delegation.
Community Applauds Compound Staking Product Amid Humpy’s Approval
As for the Compound Staking product, the reaction has been quite positive from the side of the community regarding the resources. Last, but not least, as for Humpy, who has some partial role in the proposal controversy, he expressed his full approval of the idea. Compound treasury manager, Gauntlet, managing the undertaking said, “We at Gauntlet are willing to look into a Compound staking product. We as service providers to Compound’s DAO are ready for performing any runs in connection with analysis of the proposed mechanisms or designs and for guaranteeing that the reserve ratio is as healthy one as it is possible.
Such response is characteristic of the APP community which embraces changes that enhance the efficiency, safety and other aspects of the COMP token. This new staking product is seen as a step in guaranteeing that the platform has a layer of armor in the form of useful tools to engage users with extra utility on the platform.
Compound’s Governance Under Scrutiny
However, problems associated with the management and protection of the Compound platform have been mentioned. One person from the audience, Doo from StableLab, further noted that they must set strong precautions in checking and furthering the problem. “There are some risks we think should be addressed in a truly long-term fashion for Compound Governance security,” he said, adding “there are some groups that would permanently gain Voting Power by offering additional motivation to stakers to them. ”
These governance changes include; Doo introduced several changes that would improve on security and the enhancement of equal representation within the DAO. The above concerns draw attention to the fact that there is a need to be on the lookout and modify governance practices within decentralized finance (DeFi) constantly. With growing popularity, issues related to the safety and clear regulation became vital for investors’ trust and stability of the sector.
A Quick Wrap Up
The new Compound Staking project is a new milestone in the development of the platform after the scandal related to the distribution of 24 million tokens. For this reason, Compound does provide a more structured manner for rewarding participants and is more security and governance focused to improve its position in the DeFi market. Since the majority of the populace, which was evident by the reception of the program and comments from most of the viewers, if not all, as well as Humpy and Gauntlet, and other stakeholders supports this program.
Introducing Compound Staking is one of the examples of how the platform cares about the further development and is ready to adapt to people and the market. Besides, this development improves the functionality of the COMP token and can also serve as an example for other DeFi projects in addressing similar cases. Continue to follow the Turkishnyradio for more crypto news.
