COMP Token (Compound) is a cryptocurrency token based on the Ethereum blockchain network and is used to pay fees associated with Compound’s money market protocol. The COMP token was created in 2020 by Compound Labs, an American financial technology company which aims to create new economic infrastructure for decentralized finance applications.
The primary purpose of the COMP token is to facilitate governance over Compound’s money markets and networks. This includes voting rights for proposals related to the development of its product suite, as well as access rights for developers looking to build products off of it. By holding or using COMP tokens, users can vote on decisions that determine how Compound evolves over time. Additionally, users who hold at least 1% of all circulating supply will receive rewards from protocol usage fees taken from network participants.
The total supply of COMP tokens is 10 million but only 8 million are currently circulating – 2 million have been locked away in a contract by the team behind Compound labs until 2021 when they will be released back into circulation. In addition, 5% inflation rate has been built into each block reward so that additional coins can be minted as part of its monetary policy.
In order to use COMP tokens on exchanges or elsewhere, you need an ERC-20 compatible wallet such as Metamask or MyEtherWallet that supports Ethereum-based assets like this one. You can buy or sell COMP tokens through popular exchanges such as Coinbase Pro and Kraken among others; however do keep in mind that not all exchanges support trading these types of cryptocurrencies yet so make sure you check before signing up with any exchange platform if they offer support for ERC-20 based coins like this one first!
