What is COMP used for?

Modified on Sat, 18 Feb 2023 at 08:34 PM

The COMP coin is a governance token, a token that grants holders the power to propose various changes to the protocol’s system along with allowing the right to vote on others’ proposals. These proposals can range from requesting a change in the interest fee rates, the addition of a new coin, or even larger systematic changes regarding functions. The governance power correlates to the number of tokens one holds. All of these is a part of the Decentralized Autonomous Organization system (DAOs) which allows equality amongst the system’s users.

 

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