đ„đ„đ„ $COMP Down 6.7% after Supposed 'Governance Attack' on Compound #DAO
Governance Attack on Compound DAO: The Golden Boys' $24 Million Proposal
Overview
- A group called the 'Golden Boys' has successfully pushed through a proposal to allocate $24 million in COMP tokens to a yield-bearing protocol, goldCOMP, intended to provide passive income to COMP holders. This move, after three failed attempts, has raised concerns of a governance attack, causing COMP to drop over 6%.
Concerns and Governance Attacks
- Wintermute and other major stakeholders see this as a potential governance attack, where an entity gains significant voting power to manipulate the DAO for personal gain. In Compound's case, substantial COMP token delegations by a whale named Humpy influenced the decision-making process.
Proposal Attempts
1. Proposal 118: Aimed to transfer 5% of COMP's treasury to a multi-sig wallet controlled by the Golden Boys; it failed due to community concerns.
2. Proposal 247: Sought to invest 5% of COMP tokens into a goldCOMP vault for passive income; it failed to reach a quorum.
3. Proposal 289: Successfully allocated $24 million worth of COMP to the goldCOMP protocol.
Community Response
- Some community members accuse the Golden Boys of attempting to "steal funds," while Humpy defends the proposal, asserting it prevents fund diversion.
Countermeasures
- In response, Proposal 290 aims to transfer control of the Timelock Admin to limit the Golden Boys' actions. This proposal seeks to provide the community with more time to react to governance attacks by enforcing a two-day delay before execution.
Future Implications
- The effectiveness of Proposal 290 in preventing the Golden Boys from accessing the targeted COMP tokens remains uncertain, as the community continues to protect Compound's governance integrity.
Source - coindesk.com
