Compound Finance Faces Governance Attack Allegations After $25 Million Proposal 289 Passes by Golden Boys

Jul 29, 2024, 05:20 AM

Compound Finance, a decentralized finance (DeFi) protocol, is facing allegations of a governance attack following the passage of Proposal 289. The proposal, which narrowly passed by a vote of 682,191 to 633,636, allocates 499,000 COMP tokens (approximately $25 million), representing 5% of the treasury, to the goldCOMP treasury, a yield protocol designed by a group known as the Golden Boys. The community has raised concerns over the centralization of power, as the proposal was pushed through by a whale named Humpy, also known as Titanium_32, who allegedly controls a significant portion of COMP tokens. This incident has sparked debates about the integrity and mechanics of decentralized autonomous organizations (DAOs) and the vulnerabilities of on-chain governance systems.