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Compound Approves $52 Million Plan and New Leadership to Court Institutions

The plan shifts the protocol toward bank‑style real‑world assets and places most funding behind milestone checks to prove product and partner progress.

Overview

  • The Compound DAO approved the two‑year, $52 million program and installed a new leadership team on Monday to refocus the protocol on institutional clients.
  • Only $14 million is released immediately while $38 million sits in a reserve wallet controlled by a planned five‑of‑seven Treasury Management Committee multisig and will unlock only after committee certification of milestones.
  • Year‑one deliverables that gate further payments include hiring a full product and engineering team, shipping a V3 integration kit, deploying a new liquidation engine on mainnet, and producing audit‑ready V4 contracts plus a private alpha.
  • The budget splits roughly into $28 million for operations and $24 million for growth, with about $8–$10 million specifically set aside to subsidize institutional partnerships and to build a hub‑and‑spoke V4 architecture for better capital efficiency.
  • Compound’s pivot responds to a long slide in deposits — TVL fell from about $12 billion in 2021 to roughly $1.2 billion now — and its success will hinge on hiring, shipping audited code, and converting partner talks into live integrations against strong competition.