After a bunch of discussions with Morpho and Gauntlet, AlphaGrowth and the Growth Program are in support of this strategy. The previous major concerns are addressed as follows:
- Fee Switch : There is no immediate plan to enable fees. If a fee switch is ever turned on, the morpho code would switch to opensource. Also the DAO would need to vote separately to activate Gauntlet fees. Compound would be free to fork in a scenario where the fees become onerous.
- Breakeven Analyis : $1.5MM is a healthy investment and the anticipated breakeven is a 6–12 month time horizon.
- Strategic Implications : This proposal would shift Compound’s focus from a purely protocol-driven project to something more like a fee driven holding company. AlphaGrowth will align it’s strategy, pursuing multiple revenue streams, and leveraging marketing, branding, and distribution efforts.
- Further Expansion : Morpho has committed to collaborate on multiple chain expansions with Compound. The Growth program will have more things to sell to Chains on behalf of Compound.This is a substantial pivot from Compound’s traditional approach of prioritizing v3 adoption and relying on a single revenue source. As the DAO embraces this new vision, we can accelerate growth by partnering with multiple protocols to create multiple income streams.