Compound DAO's $52M COMP Buy Sparks Governance Dispute

A dispute has erupted over the use of Compound DAO protocol reserves to buy $52 million worth of COMP, which was then used to secure a majority of delegated voting power at a May snapshot.

The purchase, made through a Binance account, arrived in a DAO reserve wallet just 58 minutes before the voting snapshot fixed voting power. This allowed supporters to maintain control of the voting power and pass Proposal 582 with zero votes against.

The link between the reserves spent and the COMP received is not publicly clear, but it appears that the funds were used to purchase COMP through a Binance account.

Delegate ugurmersin has called out the Compound Foundation for breaching the reserve mandate, while the Foundation claims the conversion was consistent with the governance-continuity purpose of the mandate.