01-01-2021, 10:43 AM
I'm leaving Compound because of their decision to proceed with Compound Chain. It's been becoming increasingly clear for some time now that early Compound investors (mostly old guard silicon valley VCs) are focused on retaining and expanding their control of the platform. A key demonstration of this intent was Governance Proposal 021 that reduced COMP distribution to users. It was the second distribution reduction in less than a year. This occurred at the same time as other platforms like Uniswap chose to airdrop hundreds of millions of dollars worth of tokens to users for no other reason than upholding the crypto community's long held values of decentralization.
The announcement of Compound Chain was the last straw. Compound Chain is a Proof of Authority chain, similar to Facebook's Libra, governed by validators to be chosen by COMP holders. At first glance, this seems reasonable, but it is deeply concerning considering the extreme centralization of COMP tokens in the hands of a few early investors and their consistent actions to restrict the distribution of COMP to users. While masquerading as decentralized, Compound is governed by a small group of insiders, just like Libra and just like the banking system before it.
While there a lot of features to like about Compound (simplicity, reliability and ease of use), it's feature set is not unique and is highly replaceable. So with the multitude of platforms to choose from, I've decided to move my funds onto Aave, a platform with a long history of good-faith contributions to the crypto community.Kind Regards R
The announcement of Compound Chain was the last straw. Compound Chain is a Proof of Authority chain, similar to Facebook's Libra, governed by validators to be chosen by COMP holders. At first glance, this seems reasonable, but it is deeply concerning considering the extreme centralization of COMP tokens in the hands of a few early investors and their consistent actions to restrict the distribution of COMP to users. While masquerading as decentralized, Compound is governed by a small group of insiders, just like Libra and just like the banking system before it.
While there a lot of features to like about Compound (simplicity, reliability and ease of use), it's feature set is not unique and is highly replaceable. So with the multitude of platforms to choose from, I've decided to move my funds onto Aave, a platform with a long history of good-faith contributions to the crypto community.Kind Regards R