COMP, the governance token of decentralized finance (DeFi) lending protocol Compound, is currently trading at around $62 on decentralized exchange Uniswap, a few hours after the protocol started distributing them on Monday.
The Compound team announced earlier today that it had started distributing COMP to users. Soon after, a COMP-ETH market was opened on Uniswap, which has already seen 153 transactions and $419,946 in total trading volume at press time. The liquidity pool has also accumulated 14,149 COMP tokens and 3,757 ETH.
Compound first unveiled the governance token in February, kicking off its plan to transition control of the protocol from the company to token holders. During the initial period, some COMP was distributed among the company's stakeholders. The token went live in mid-April. A vote on a proposal to distribute COMP to users was recently passed with an overwhelming majority by the initial token holders.
Per the distribution schedule, around 2,880 COMP will be distributed daily across the eight lending markets on Compound, including ETH, DAI, USDC, USDT, BAT, REP, WBTC and ZRX. The amount of COMP each market receives will be proportional to the interest accrued in the market, and users earn COMP proportionate to their balance on Compound in real-time. Over the next four years, 42% of the total 10 million COMP supply will be allocated to users.