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*Inflation figures shown here reflect circulating (market) inflation and may differ from a coin’s projected, policy (planned) inflation.

What is Compound-governance-token?

Compound-governance-token (COMP) is the decentralized governance token of the Compound protocol. It enables holders to participate in on-chain governance, including voting on protocol upgrades, interest rate models, and collateral settings. COMP is minted and distributed to users who supply and borrow assets, aligning incentives and supporting the growth of the DeFi ecosystem.

Why does Compound-governance-token have inflation?

Compound-governance-token has inflation because new COMP tokens are minted and distributed to users as incentives for supplying and borrowing on the platform, increasing the circulating supply over time. This inflationary design aims to encourage liquidity and active governance participation.

How is Compound-governance-token inflation calculated?

Compound-governance-token inflation is calculated by comparing the circulating supply from one year ago to today’s supply. The percentage increase in supply over that period is the annual inflation rate. Learn more in our guide: What is cryptocurrency inflation?.

How is Compound-governance-token emission calculated?

Compound-governance-token emission refers to how new coins enter circulation, usually through mining or staking rewards. The emission rate depends on the project’s monetary policy and block reward schedule. Learn more in our guide: What is cryptocurrency emission?.

FAQ

We calculate our own inflation and emission data via our algorithms. You can learn more about how we derive our data in the learn page.

We encourage the usage of any data available on this website. You may use it for your personal or educational goals, but do not use it commercially unless you purchase the CryptoInflation API.

We strive to make the data as accurate as possible, but some blockchains have limitations on how precisely supply, inflation, and emission can be calculated. Moreover, the data on this website often has to be averaged and approximated, therefore the data can be a bit off sometimes.

Cryptocurrency emission and inflation aren’t inherently bad—they’re part of how many blockchains secure their networks and incentivize miners or validators. Moderate inflation can help distribute coins fairly and keep the network active, but excessive or poorly managed emission may dilute value and hurt long-term sustainability. You can learn more about how issuance affects price here.