I’m not sure if the goal of reducing farming and recursive leverage is in the best interest of COMP holders. I think these are the current effects of farming:
- Massively inflated TVL
- Great supply APY on DAI due to high utilization
- Reserves filling at increased rates
The key driver behind all this (and the entire farming craze) is that we’re dealing with an irrational market. The key driver of the current market price is hype/good news and a limited supply. Reducing emission would reduce selling pressure by rational actors (as intended by this proposal) and therefore an increased price. The increased price will raise the farming APY, thereby possibly negating the effect of the reduced emission.
I think those who hold COMP because they farmed it or paid for it have no interest in stopping farming as that is what makes Compound look more valuable with high TVL. Vesting COMP could get rid of farming, massively dropping TVL, causing the hype to falter, causing a large drop in COMP price.
As a side-note, I doubt the ‘open’ community feels the voting rights are useful considering all the real voting power is in the hands of a select group of early partners, etc. At the current rate it will be years before there is enough COMP out there to speak of community. So at the moment COMP is just another speculative asset with no current intrinsic value. So price and price expectation are the main motivators in the market.