In a recent analysis of Compound Finance’s token distribution, Bubble Maps, a blockchain analytic platform on December 11, reveals that a16z, a crypto-focused venture capital firm, holds 11% of COMP’s total supply.
Bubble Maps notes that a significant stake held by a16z in Compound Finance’s governance model raises concerns over the protocol’s decentralization. A16z’s influence on proposals could outweigh the interests of the community.
Compound Finance is a decentralized finance (DeFi) platform that allows users to lend and borrow various coins. According to DeFiLlama on December 11, the project has a total value locked (TVL) of $2.31 billion.
Its native ERC-20 token, COMP, is used for governance. As such, holders can vote on proposals that involve changes to the protocol’s core rules and parameters.
Venture Capital Firm, a16z, Controls 11% Of COMP’s Supply
However, Compound Finance was a decentralized crypto project, relying on a pool of retail and institutional i
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