#ChartoftheDay On July 28, Compound unexpectedly passed a proposal to allocate a quarter of its treasury, or 499,000 COMP tokens valued at about $25 million, to a yield-bearing protocol called goldCOMP Vault.

The protocol was created by a group called Golden Boys, which is led by anonymous crypto whale Humpy. Humpy has been a major participant in several protocols. An often-used strategy of Humpy is to earn a large number of a DeFi protocol’s governance tokens by taking advantage of its incentive scheme, and then use the voting power accumulated to approve proposals that favor personal interests. A well-known case was how Humpy farmed and controlled Balancer in 2022. After accumulating enough of Balancer’s governance token veBAL, Humpy started using his massive voting power to boost token rewards for specific pools in which he was yield farming. Today, Humpy has become the second largest holder of BAL tokens, second only to the project team.

This time, Humpy cast his eyes on the many ideal $COMP lying in Compound’s treasury. He pushed the proposal through with a slim majority of 682,191-633,636 votes. This victory means he has hijacked Compound. Humpy’s current holding of $COMP, together with the 499,000 tokens to be allocated to the protocol, would imply that Golend Boys would have unprecedented control over Compound and could almost unilaterally pass any proposal they want.

Fortunately, Compound has reached a truce with Humpy and Golen Boys following intense discussions. According to the latest development, the proposal will be withdrawn, and a new staking product will be put in place instead, which will distribute 30% of the fresh token reserves generated annually to staked $COMP holders.