Summary
This proposal upgrades Compound's treasury-delegation (Franchiser) system to a new pool-based architecture and, in the same step, carries out the first scheduled biannual delegate rebalancing under Proposal 504 — Compound Delegate Race (Cycle 2).
The total COMP delegated through the program does not change. Existing delegations migrate to the new pool with no interruption to voting power, and the pool reclaimed from under-participating delegates is redistributed to qualified active delegates. COMP remains in Governance-owned contracts throughout.
Background
Proposal 504 established a standing six-monthly review of treasury-delegated voting power, with a uniform on-chain participation standard and a defined reallocation procedure. The first review window (Proposals 505–586) has closed and participation has been verified on-chain. The full review, application window, and waterfall are documented on the forum: comp.xyz/t/7862.
What this proposal does
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Upgrade. Migrate the treasury-delegation program to the upgraded Franchiser pool: existing delegations move into a new Governance-funded pool, with the CGWG multisig set as Coordinator and a Guardian set for emergency oversight. Governance retains sole authority to fund, halt, or reclaim the pool in full.
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Rebalance. As part of the migration, three delegations that fell below the participation standard are not renewed — releasing 81,178.58 COMP — which is redistributed to the qualified applicants per the waterfall.
Not renewed — 81,178.58 COMP reclaimed:
| Delegatee | Address | COMP |
|---|
| Michigan Blockchain | 0x13BD…8548 | 29,999.88 |
| Reservoir / AlphaGrowth | 0x4f89…fd3c | 50,000.00 |
| Sharp | 0x72C5…7708 | 1,178.70 |
Reallocated — 81,178.58 COMP:
| Delegate | Address | COMP |
|---|
| FranklinDAO | 0x0703…961b | 8,262.46 |
| DAOplomats | 0xc554…7759 | 40,000.00 |
| blockful | 0x1F3D…0591 | 32,916.12 |
The upgraded architecture
The upgrade replaces per-delegation Franchiser deployments with a single pool, split across three role-gated contracts:
- FranchiserPoolFactory — the Governance-only entry point. Governance creates, funds, and can halt a pool; halting recalls all delegates and returns the full COMP balance to the Timelock (the only path for COMP to leave the program).
- FranchiserPool — holds the program's idle COMP. A Coordinator (the CGWG multisig) can
delegate, recall, and reassign voting power among delegates within Governance-set limits. A separate Guardian can emergency-recall a delegate or freeze the pool (10-day minimum), but can never move or delegate COMP.
- Franchiser — unchanged from V1: holds delegated COMP and grants voting power to a delegatee (who may name up to one sub-delegate).
Governance (the Timelock) sets each pool's parameters — delegate cap, Coordinator, Guardian, freeze period — and can change them or halt the program at any time by on-chain vote.
Guarantees
- Delegation only, never custody. COMP stays in Governance-owned contracts at every step (Timelock → pool → Franchiser); no working group, Coordinator, or Guardian ever takes custody of the tokens.
- Total set by governance. This proposal does not change the program's total delegated COMP — it migrates and reallocates the existing pool. Any change to the total returns to an on-chain vote, and Governance can recall or reassign any delegation at any time.
