Risk Warning: Beware of illegal fundraising in the name of 'virtual currency' and 'blockchain'. — Five departments including the Banking and Insurance Regulatory Commission
Information
Discover
Search
Login
简中
繁中
English
日本語
한국어
ภาษาไทย
Tiếng Việt
BTC
ETH
HTX
SOL
BNB
View Market
Compound Grants $24M COMP to “Golden Boys” to Design Protocol; Proposal Sparks Governance Attack Allegations
2024-07-29 00:09:22
Odaily News A recent proposal passed by Compound Finance has sparked allegations of a governance attack from the community, who claim that a small group was able to force the proposal through the approval process after acquiring a large number of tokens on the open market. Proposal 289, which was passed by a narrow margin of 682,191 votes to 633,636 on Sunday, allocates 5% of the funds in the Compound treasury (499,000 COMP tokens, worth about $24 million) to a one-year interest-bearing protocol designed by the "Golden Boys." Voting on the proposal began at 11:40 p.m. local time on Thursday and lasted through the weekend. However, community members claim that there is a hidden story behind these voting totals. Michael Lewellen, security solutions architect at OpenZeppelin and a security consultant for Compound Finance, posted on X that some accounts accumulating COMP tokens on the open market are associated with several proposals aimed at transferring COMP assets to the goldCOMP product created by the "Golden Boys." In response to Lewellen’s security alert, several community members, including Wintermute Governance, Columbia Blockchain, Penn Blockchain, and StableLab, expressed similar concerns, especially when the group attempted to pass its initially failed proposal twice more. “In my personal opinion, the actions of @Humpy and the Golden Boys could be considered a governance attack if they persist in trying to extract funds from the protocol, clearly against the will of all other Compound DAO delegates,” Lewellen posted after Prop. 289 was created. However, after Prop. 289 passed, the apparent leader of the Golden Boys (known as Humpy) defended the proposal, saying, “‘Stealing funds’ is a false and misleading statement, especially coming from Compound’s risk experts. The requested investments went through Trust Setup, which has a series of restrictions in place that do not allow the theft/transfer of funds.” (The Block)