Proposal 289 of Compound Finance was approved with 499,000 COMP tokens to a yield-bearing protocol developed by the “Golden Boys.”
The contentious vote has prompted accusations of a Compound Finance governance assault. The Compound community has been extremely contentious regarding the proposal’s passage. Some opponents have publicly stated that a small group of investors, known as the “Golden Boys,” manipulated the vote by amassing an enormous quantity of COMP tokens, thereby influencing the outcome. In reality, it had been explicitly stated on Compound governance message boards days prior, as insiders had cautioned against potential manipulation.
Compound Finance’s governance assault was the culmination of the Golden Boys’ numerous endeavors to secure funding for their goldCOMP Project. Earlier proposals, including the most recent on May 6, 2024, and an updated request on July 19, were unable to garner sufficient support. There was a significant argument against it, which was that this would further empower the Golden Boys in their ability to manipulate funds.
Michael Lewellen, a security counsel for Compound Finance, identified the Golden Boys’ actions as a potential attack on Compound Finance’s governance. However, Humpy, one of the Golden Boys camp leaders, defended the proposal, asserting that the funds would be managed in a trust structure that is intended to prevent their malevolent use.
Bryan Colligan, the founder/CEO of Compound and the head of the growth team, has addressed the controversy by emphasizing the existence of other lucrative investment opportunities that are not related to the goldCOMP proposal. Currently, there is also a proposal 290 to transition the Compound Governance Timelock Admin to “CommunityMultiSig,” which could severely restrict the number of such proposals in the future.
The goldCOMP treasury fund will receive $24 million, with the implementation date for Proposal 289 set for July 30.
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