Hi,
my first post here, but in general I’m quite deep in DeFi. I’m using compound Finance and MakerDAO for more than a year.
As in topic.
- What is economic incentive for COMP holders not to sell it as fast as possible?
- What is economic incentive for COMP holders to make wise governance decisions
- Is there any kind of link between success of Compound token and price of COMP token?
Any Comparition to MakerDAO appreciated.
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Great questions … following this for any responses
Questions like these have come up here before, see: Dividend on COMP
As of today the answers I think are:
-
What is economic incentive for COMP holders not to sell it as fast as possible?
None as of right now besides a hope/assumption there will be an incentive added at a future date.
-
What is economic incentive for COMP holders to make wise governance decisions
None as of right now besides a hope/assumption there will be an incentive added at a future date.
-
Is there any kind of link between success of Compound token and price of COMP token?
None as of right now besides a hope/assumption there will be an incentive added at a future date.
The trading of COMP is purely speculative at the moment. Currently the only utility the COMP token has is voting rights.
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I posted some thoughts here yesterday. Basically the COMPs are a way for the investors and founders to monetise their work. The team have a vesting schedule over 4 years, probably similar to stock options.
At current market prices, you’d need to control about 400k x $150 = 60mn USD worth of the stuff to make decisions. That’s a lot of money for attending a shareholder meeting, no free drinks.