After extensive community input over the last few weeks, we have finalized the proposal details and published a draft on Tally here.
This proposal authorizes the Comptroller to transfer approximately $9M worth of COMP to support the Foundation. Based on the 30-day TWAP of $44.655 per COMP (as calculated here), the proposal initiates an immediate $3M COMP grant using grantComp, followed by the creation of a Sablier stream via createWithTimestampsLT to unlock an additional $6M in COMP across four quarterly tranches in 2026. These actions have been reviewed and verified by OpenZeppelin, as detailed in their report to the community.
We plan to submit the proposal onchain Sunday morning, June 15, with voting expected to begin early next week.
We appreciate the community’s engagement and look forward to your support.
Establishing the Foundation is an essential milestone in the maturation of the DAO.
We believe Compound DAO requires leadership capable of making strategic decisions aligned with Compound’s growth objectives. Whether it’s selecting an OEV provider, structuring the DAO legally, generating revenue streams, or addressing other critical areas.
Additionally, Compound would greatly benefit from having an official representative focused on identifying market opportunities and effectively converting them into wins, such as institutional liquidity deals or ecosystem partnerships.
Building a robust Compound brand identity and managing public relations are crucial. A Foundation that clearly defines Compound’s market positioning and effectively communicates this to current and potential users, including representation at major offline events and proactive engagement through social media and interviews, would deliver significant value.
Creating a strong product vision aligned with the growth strategy is a great combination for the highest output.
We had a chance to speak with Aaron and witnessed firsthand the dedication and capability of Aaron and his team. WOOF! supports the establishment of the Compound Foundation and looks forward to collaborating more closely.
If the proposal passes, will there be a Discord call or possibly an X call hosted on Labs handle with the Foundation present? I think either would be great. Also curious if the topic of staked COMP is still being considered, and what the outlook is for starting up posts and engagement on X again.
I’m excited to see the Foundation take off with a strong community mandate. This is a pivotal moment in Compound’s history where the longstanding gap left by the Labs team can be filled by a competent and protocol-aligned entity.
Tally is supportive of this proposal and excited to see the Foundation take shape. Establishing a protocol-aligned, community-driven entity is an important milestone in Compound’s evolution and long-term autonomy.
FranklinDAO is strongly in favor. The Foundation can aid in coordinating the activities of Compound and make the DAO more resilient to grift and capture from service providers. Furthermore, the Foundation can help set long-term strategic objectives, which is crucial for Compound regaining a strong market position.
Although it’s still in early in the process, based on our conversations with Aaron Schnarch and his team, we believe he is the right leader to spearhead this initiative and stand up the corresponding legal entity. His background in institutional finance combined with the regulatory tailwinds of the current administration present a unique opportunity for Compound to take advantage of potential opportunities in RWAs and traditional finance verticals.
Given the competitive pressures Compound faces and the urgent need for coordinated execution, the Foundation structure under Schnarch’s leadership represents the best path forward. The regulatory environment is shifting in Compound’s favor, and the DAO can’t afford to let the opportunity pass while competitors continue expanding their market share.
FranklinDAO gives our full support to this proposal and looks forward to seeing Compound reclaim its position as a leading DeFi protocol.
We wanted to share a quick note of gratitude to the Compound Community after the on-chain voting period ended with the largest margin of approval as well as the most votes cast in Compound’s history. Thank you!
We’re humbled to have the trust placed in us to steward stabilization and acceleration of Compound. As discussed in our proposal, we believe that we are at an opportune moment for DeFi and DeFi lending in particular. DeFi lending has hit a record TVL, with institutions such as JP Morgan exponentially increasing investments in DeFi and stablecoins, and legislation providing increased operating clarity in geographies such as the US and EU.
But there’s a lot of work to be done to capture that opportunity and re-position Compound as a conversational mainstay in DeFi lending. We’re excited by the Community’s support and are poised to start executing on this opportunity.
Starting July 1st, our initial focus areas will be the following:
Set up Legal and operational foundation, including a search for external Board member candidates the DAO will ratify
Hire top talent across all major functions - engineering, product, business development, and marketing
Develop deeper perspective on product positioning and strategy, to build our roadmap and partnerships, while engaging in market dialogues
There’s a few places where we can use early community help - feel free to reach out to us directly about:
Perspective on critical product features or direction (we will also offer town halls to gather input)
Profiles of high caliber talent who may want to join the Foundation
We are already thinking of market interaction and will spend the first day of the Foundation in meetings over EthCC in Cannes, France.
Again, our sincere thanks for the support and vote of confidence. We’re excited to get started!