Should Compound Retroactively Airdrop Tokens to Early Users?

If Uni,1Inch, Pooltoghter, Tornado and now DYDX can do it without issue.i cant for the life of me understand why Comp cant do the same…


Let’s be a bit more biased towards action. What can we do next for this proposal?

Can we do a temperature check on snapshot for it?
Should we do one for the cutoff date, based on @allthecolors 's work?
Should we do another one for the distribution model: simple claiming, vesting, streaming, options.

I guess with such a big community, the simpler approach should win - but let’s put it up for a vote and make sure this has the support of the COMP audience.


We could, but I don’t think this would be beneficial.

All of this has also been discussed…

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***** We need someone who can reach out to the larger COMP hodlers in the hopes that one or more of these hodlers supports any kind of airdrop.

If a COMP hodler likes the idea of an airdrop, then we should consult with them on what that airdrop should look like. After we work out the details, we will need to get them or someone else to create the proposal. Then the large COMP hodler could initiate the proposal for review and then voting.

I would imagine that many smaller hodlers will probably delegate their COMP tokens to the person who made the proposal possible (and hopefully before the proposal gets to the vote stage). The majority of the smaller COMP hodlers will more than likely need to either vote or delegate their votes for this to not be a huge waste of time. I also think that every early user address should have a single vote as well. But my experience so far, is saying, why did you even just write this? LOL!

I keep thinking about the COMP that will be coming back to Compound’s Reservoir contract in November from Coinbase as possibly the best option to use for the airdrop. Since the 500,000 COMP sent to Coinbase Earn could have been drained anyhow, but it appears it isn’t. During a dev call, @rleshner had mentioned how many COMP Coinbase has yet to give out, I wanna say maybe around 180,000 COMP have yet to be used by Coinbase’s Earn program.

On the otherside of the road, we cannot find a large COMP hodler who supports any type of airdrop, I think the chances of an airdrop happening REALLY falls off.

This would not only be like “awe man” for the early users, but could end up being a HUGE blow to Compound in the near term and in the long term. Just look at this thread! Majority of people on this thread is in support of an airdrop, so word is gonna get out. This would be news. It could potentially reach crypto news outlets like Cointelegraph, The Block, CoinDesk or even Bloomberg, Forbes or CNBC. Or those of us who are already content creators for media outlets could just publish a write-up explaining the situation.

In case you didn’t know… Quotes from the COMP Distribution Update a while back:

“In total, 5,004,949 COMP will be distributed to the community — just over half of the total supply.”

“In June, we designated up to 500,000 COMP for distribution through Coinbase Earn. COMP tokens will be available through Coinbase Earn until November 2021, at which point Coinbase will transfer all remaining tokens to the Compound protocol’s Reservoir contract.”


no any result at all


I feel more sad each day passing by…
I mean… has anyone give to proper attention to this !?!

I don’t even care anymore about $comp… i just wanted the NFTs !!! :sweat_smile:

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I kinda knew that the only way of pulling this off is to do a simple equal distribution to everyone that interacted with COMP contract before a given date. Period. Uniswap style - simple & easy.


Another day another airdrop. Dydx airdrop. No progress with comp airdrop though.

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Given recent sentiment among some larger COMP holders around this idea, currently I think the momentum on this initiative is best framed as part of the ongoing conversation about evolving the protocol’s strategies for distributing COMP to support its health, safety, and growth. I’ll circle back here with my thoughts/suggestions on next steps once that thread has had some more time to develop.


Thank you allthecolors for the help you provided which permitted to catalyze the wilingness of thousands to decide of an allocation to early users closer to the actual proposal. Since we are reaching close to the endof the more technical discussion over how to balance the allocations (number, vesting, etc), which I would be glad to discuss in an other message, I would like to come back to the core of the approach and recall the most relevant arguments that I have read in and around this discussion.

1)Compound own much of it’s success to it’s early users

« Compound owes much of its success to the thousands of community members that have joined its journey over the past two years. This is true particularly of the early users who provided liquidity (both as borrowers and lenders) before there was any monetary incentive to do so and of the early developers who opted for building on top of Compound before the launch of the COMP token. » by Alive

«-I would go even more drastic about retroactive rewards,
compound v1 started around Sep-26-2018 and COMP distribution started at Jun-15-2020 that means that early users used Compound for at least 2,5 year.
if we would want to be totally fair and give equal rewards for the users before COMP distribution started then 30.7% » by blck

2)The allocation toward early users will permits to strengthen a community and will participate to Compound long term success

« Crypto has always been about building networks that are owned and operated by their respective communities.-Crypto has always been about building networks that are owned and operated by their respective communities. » by Alive

« -If there is any group of people that is most likely to be aligned with Compound’s long term success, it’s that group. » by Alive

«-Giving people a vested interest in Compound is a way to acquire the human capital we desperately need. Think of it as a multi-million dollar marketing campaign. Early adopters of Compound are a logical choice for the target of this campaign. They already have a connection to the protocol, and an airdrop may encourage them to become more involved and more connected. » by arr00

« Firstly you should get that getting COMP into the hands of dedicated early users who demonstrated strong interest in the protocol itself, rather than into the hands of whale farmers who don’t care about anything but yield, is great for comp and for comp investors. » by Andre1

« -Finally, we believe that token distribution models that reward bonafide early users and contributors are likely to create more engaged communities, and therefore more sustainable protocols. These are the types of users and developers who add value before a protocol achieves real network effects, or even has much inherent utility. Examples include [the early users ] » by Pollon

« -We believe that these are the types of users who are likely to be the best long-term stewards of the protocol. While any token distribution model must take into account regulatory considerations, we generally believe that efforts to reward these types of early adopters are likely to position a protocol for long-term success, and we look to support them wherever possible. » by Alive

« -Protocols that achieve meaningful decentralization are more likely to gain long-term adoption and sustainability than those that do not. While the potential design space of governance is massive, we remain guided by this basic principle, and support initiatives that we feel embody it » by Pollon

« -The addresses that receive COMP should be early users that risked their time and capital to establish the protocol. » by rleshner

3) There is an extreme excitement and support around this proposal

I am impressed that we are here in the most active discussion, despite we are approaching a year of discussion and not much support from the core developpers, 29k views. However the support of the founder himself helped to obtain the compound grant which acted as a successful tool to help organize the research making it soon possible to apply for a proposal. In the same way the twitter polls launched by the founder with 1202 participants showed a 69% of voters in favour of an allocation of Comp to early users.

There is an obvious wish from a large part of the community to, when we would move toward a proposal, vote in favor of a non-0 Comp allocation for early users. Even if the interest of a few holders might seem to diverge in the very short term (which I do not agree with), we can appreciate that a16z, one of these holders and one of the biggests Vcs in Defi, is pushing throught this topic in favor of allocating a part of the Comp toward the early users, forgotten by the current distribution system until now. The longer term view should win against some shorter term interests of a few.

I think the question of an allocation for early users is independant from the other topics and it would be wise to move toward a vote now that we got all the datas provided by allthecolours throught the grant.

We could for example start by voting over the total number of COMP which should be allocated toward early users, starting from 0 (current distribution without allocation for early users)
And secondly we could vote over the specific way this allocation should be granted, in a balanced way between user and capital which will have to make consensus to permit it to proceed.


@allthecolors - I feel so sorry for all the efforts you put together for this activity.

Based on how things went so far (in last 10 months), this is a clear no-go. Inspite of clear support from majority of the community, opposition from 2 or 3 influential leaders has destroyed this. So lets atleast put everyone out of their misery and get closure on this topic

@alive - Curious to know what you think of this entire failed exercise. It was nice and fancy to see lofty ideas being discussed in a16z marketing materials (Crypto Startup School), and wake up to this reality.


This entire idea was put to discussion, so that the protocol is decentralized and a few large COMP holders wont even let this go to a snapshot vote…what an irony !!!


So the entire proposal and optimism from whole community is going into vain just because of few large comp holders ? Then how is it decentralized? Doesn’t SEC be after comp then ?

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of course, it’s a constant problem when deciding on something. Currently, Compound acts more as a centralized financial institution than as a decentralized protocol (they use marketing term: “user-owned protocol”).
I don’t understand why users who use the protocol for 2-3 years wouldn’t get a “governance” token? Probably because it’s worth $ 400, if it happened to be worth a few cents, wallets would be as full for everyone as on the BSC network.
If nothing else, at least it would be a nice gesture if some VC representative would present his views on forum.
Theses they present in their articles and what they talk about in podcasts is just one big promotional campaign.
@allthecolors I appreciate your work, you really put a lot of effort into this thing

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I tagged @alive in an earlier post to atleast comment, given the idea originated from him. I don’t really care if this proposal passes or not, but i will be pissed if a16z continues to market themselves as supporting decentralized communities, after this shitshow…


Really sad to know about the exploit. Wish they rewarded the comp to retroactive early adopters instead of loosing it through exploits. Really bad reputation on these 2 events. Hope they correct it and bounce back soon.


I believe you owe it to those early adopters for where you are today and im proud to be one of them. 5% seems generous but if you really look at the amount of money that those early adopters added to the current market growth in terms of % growth you would see that compound has grown tremendously because of these users.

I propose 10% to for these 5000 wallets so 200 each as an incentive as they have stayed from the beginning and its because of them compound finance managed to claim its current position today.


Agree, nice airdrop for lucky winners. eligible for aidrop are users who supplied “0 COMP distribution” tokens on protocol?

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@rleshner - When there is a f*** hack, compound is a decentralized governance community. But when majority of early adopters were planned to be rewarded - its 2-3 centralized individuals who can say NO to a retroactive airdrop for a proposal fully supported by community without it even going to a vote. What an irony !!!


A bunch of opinions for retroactively airdop… dont want to do.
What should be done? What should not be done?
now everything is sxxt
its really disappointed at all