Renewing the Compound Governance Working Group (CGWG) 2026

Overview

Since its establishment in mid-2024, the Compound Governance Working Group (CGWG) has played an important role in shaping the evolution of Compound governance. Initially, CGWG concentrated on strengthening the protocol’s governance framework, with a focus on increasing both the quality and quantity of delegate participation. This early work aimed to make governance more robust, inclusive, and effective.

Over time, the CGWG has expanded its mandate beyond immediate governance improvements to also address the long-term sustainability of the Compound DAO. This now includes organizing Delegate Races 1 and 2 to delegate a voting power to trusted entities, stabilizing participation and quorum; safeguarding governance through work on the Community multisig, including signer rotations and extending the Proposal Guardian; and coordinating the delegation of idle COMP from sources like the Avantgarde Avatar Safe to ensure voting power is fully mobilized. The group also ran multiple RFP processes, for the Security Service Provider, Voting Service Provider, and OEV setup, bringing structure and neutrality to vendor selection. These programs have been conducted directly in coordination with the Compound Foundation, allowing for cost savings and increased revenue streams.

The CGWG also helps manage multisigs such as Immunefi Bug Bounty, Compound Blue Incentives, and the Scroll Airdrop safes, hosts bi-weekly community calls, moderates the forums, and provides research. Collectively, these contributions ensure both daily governance reliability and long-term protocol resilience.

Further Information: 

To see the full proposal scope of work and review deliverables from the previous engagement, please refer to the following form post: https://www.comp.xyz/t/renewing-the-compound-governance-working-group-cgwg-2026/7566.

Renewal Details

The CGWG will consist of PGov & Arana Digital going forward. We recently concluded our first full year of operations in December. Based on feedback from the Foundation, the CGWG has revised its compensation structure to reduce fixed costs while introducing explicit performance-based accountability. 

Base Compensation:

• $19,000 USDC per month for 14 months
• Total base budget: $266,000 USDC
• Term: December 1, 2025 through February 1, 2027

This represents an 18.5% reduction from the prior base compensation level of approximately $23,300 per month, while sustaining increased operational scope and responsibilities outlined in this proposal. Funds for months without existing compensation will be transferred as a lump sum to the CGWG, with all remaining funds streamed over time through February 1, 2027.

Performance-Based Compensation (KPI Pool)

• $64,000 USDC total performance bonus pool
• Held in a shared multisig between the Compound Foundation and CGWG

The Foundation has requested a set of KPIs including maintaining quorum reliability such that at least 95% of standard on-chain proposals successfully reach quorum; ensuring sustained delegate engagement through bi-yearly Delegate Race rebalances, with recipients maintaining at least 80% weighted voting participation; meeting strict emergency governance service-level expectations, defined as zero missed response windows for time-sensitive governance events within a 4–6 hour window; and preserving governance security by ensuring that no malicious governance attempts are executed successfully. The performance-based compensation pool is contingent on the CGWG meeting this defined set of governance and operational KPIs over the term, coordinating closely with the Foundation to unlock this budget only if they are met. Funds will be held in a shared multisig with the Foundation and quarterly reviews will be conducted.

https://tally.xyz/gov/compound/proposal/537