Compound Foundation accused of using 8.42M DAI to sway votes on 52M dollar roadmap
CIE News ·
Compound Foundation faces allegations of converting 8.42M DAI into COMP tokens to secure a 50.1% governance vote for a $52 million V4 development plan. The Foundation denies wrongdoing.
The Compound Foundation has been accused of converting 8.42 million DAI from protocol reserves into 344,780 Compound (COMP) tokens to pass two major governance proposals, according to delegate Ugurmersin and reporting from ground.news and bitquery.io. The token conversion reportedly allowed the Foundation to secure 50.1% of the voting power, enabling the approval of a $52 million V4 development roadmap alongside an oversight transfer under Proposals 580 and 582.
According to bitquery.io, the acquired COMP tokens were transferred to a DAO reserve Safe multisig wallet just 58 minutes before voting concluded, with voting power subsequently delegated to the Foundation. Delegate Ugurmersin argued that the maneuver violated rules against speculative activities, alleging the Foundation acted without proper authorization to take control of treasury decisions.
The Compound Foundation has denied any misuse of protocol funds, stating that its actions remained strictly within its mandate to protect protocol governance. The governance decision shifts protocol spending and treasury oversight to the Treasury Management Committee as disputes continue regarding the legitimacy of the process.