Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Compound Grants $24M COMP to “Golden Boys” to Design Protocol; Proposal Sparks Governance Attack Allegations

Compound Grants $24M COMP to “Golden Boys” to Design Protocol; Proposal Sparks Governance Attack Allegations

CointimeCointime2024/07/29 00:43
By:Cointime

A recent proposal passed by Compound Finance has sparked accusations of governance attacks within the community. They claim that a small group can forcefully implement the proposal through the approval process after obtaining a large number of tokens on the open market.

Last Sunday, Proposal 289 passed by a narrow margin of 682,191 votes to 633,636 votes. The proposal allocates 5% of Compound's treasury funds (499,000 COMP tokens worth about $24 million) to a one-year interest agreement designed by "Golden Boys." Voting on the proposal began at 11:40 pm on Thursday night and continued until the weekend.

However, community members claim that there are hidden factors behind these vote totals. Michael Lewellen, a security advisor for Compound Finance, expressed in a post on X that some accounts that accumulated COMP tokens on the open market were associated with proposals aimed at transferring COMP assets to the goldCOMP product created by "Golden Boys."

In response to Lewellen's security alert, some community members, including Wintermute Governance, Columbia Blockchain, Penn Blockchain, and StableLab, expressed similar concerns, especially when the organization attempted to pass its initial failed proposal twice.

"In my opinion, the behavior of @Humpy and Golden Boys can be considered a governance attack if they persist in trying to obtain funds from the protocol, clearly opposing the will of all other Compound DAO representatives," Lewellen said in a post after Proposal 289 was created.

However, after Proposal 289 passed, the apparent leader of Golden Boys (known as Humpy) defended the proposal, stating that "'stealing funds' is a wrong and misleading term, especially coming from Compound's risk expert. The requested investment is through a Trust Setup, which has a series of restrictions that do not allow stealing/transferring funds."

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!