Compound governance is the decision-making process in regard to the management and operation of the Compound protocol, a decentralized platform for lending and borrowing cryptocurrency.
The Compound protocol has a decentralized autonomous organization (DAO) that operates on the Ethereum blockchain. Holders of the $COMP token govern the DAO, doing so through a voting system.
DAO members can propose changes or improvements to the protocol through a process called "proposal submission." These proposals are then reviewed and discussed by the community, and if a proposal reaches a certain level of support, it is put to a vote. Users can then cast their votes in favor of or against the proposal. If the proposal receives a sufficient number of votes, it is executed.
Compound governance allows users of the protocol to have a say in the direction and development of the platform, and helps to ensure that the platform remains aligned with the needs and wants of its users.