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**Compound is a protocol for creating and managing money markets for lending crypto assets. Holders of the COMP token can make changes to the protocol by voting on and passing proposals.**
Most active community discussions take place in the [Compound Discord chat](https://discord.com/channels/402910780124561410/682253201701208169). More formal, long form discussions are hosted in the [Compound Discourse forum](https://www.comp.xyz/). By convention, proposals or code changes are posted and reviewed on [Github](https://github.com/compound-finance) before they are put up for a vote.
Governance Process
------------------
The Compound Finance website has a native [voting/delegation app](https://app.compound.finance/vote) and [governance dashboard](https://compound.finance/governance) that shows active and prior proposals, top addresses by token weight, and voting history. Compound uses the Compound governance architecture for proposals and voting.
*From [COMP Governance Explained](https://soliditydeveloper.com/comp-governance) by Markus Waas*
Submitting a proposal requires 1% of voting power (100,000 COMP). For users who lack the necessary voting power themselves, they can create an autonomous proposal to gather delegations for the potential change, and the proposal can be submitted to full voting after crossing the 1% threshold. Once a proposal has been submitted, a snapshot is triggered to determine each address's voting weight, and voting is live for ~2.5 days. Proposals that gain majority support and meet the 4% of total votes quorum requirement are executed after a 2 day time-lock delay.
On a high-level, the governance is a simple set of smart contracts. They allow calling any other smart contract with any data from within the governance core contract in a decentralized way. In Compound the core contract is set as the admin of the other Compound protocol contracts. This means the core contract will be able to call all kinds of management functions like adding new markets, changing parameters and even upgrading the contracts itself.
Additional Resources
--------------------
COMP token holders are allowed to vote. Further COMP is distributed to active participants in the system, ensuring the people who use Compound are the people who get to decide on its future.
- Discussion forum: <https://www.comp.xyz/>
- Discord chat: <https://discord.com/channels/402910780124561410/682253201701208169>
- Github: <https://github.com/compound-finance>
- Voting app: <https://app.compound.finance/vote>
- Governance dashboard: <https://compound.finance/governance>
- Governance documentation: <https://compound.finance/docs/governance>
- Old discussion forum (before moving to discourse): <https://compound.comradery.io/>
- Blog: <https://medium.com/compound-finance>
- Twitter: <https://twitter.com/compoundfinance>
- COMP token info (Coingecko): <https://www.coingecko.com/en/coins/compound>
The upgrade functionality is the most powerful. Compound is using a typical [proxy upgrade pattern](https://docs.openzeppelin.com/upgrades-plugins/1.x/proxies), so by allowing governance to do upgrades, literally everything can be changed including the governance mechanism itself.
The mechanism of governance follows a strict timeline of creating proposals, voting for proposals and a two day timelock before execution:
![Governance Diagram](https://cdn0.scrvt.com/b095ee27d37b3d7b6b150adba9ac6ec8/5a6bfe46945abfde/a662a71f9611/v/9565b3203398/gov_diagram.png)
Compound Autonomous Proposals (CAPs)
------------------
Since the requirement of 100,000 COMP tokens to create a proposal is a very high barrier, after all that's over 10 million USD at the current COMP prices, a new mechanism called Compound Autonomous Proposals (CAPs) was introduced. This will allow anyone with 100 COMP or more to propose a proposal. Any CAP that gets 100,000 votes can be added as regular proposal.
You can see and vote for CAPs under <https://app.compound.finance/vote>.