Compound DAO used protocol reserves to buy $52 million worth of COMP, and delegates call it a mandate breach
A brand new on-chain reconstruction says COMP acquired, by means of Compound DAO reserves, a majority of all delegated voting energy at a May snapshot. That place didn’t change the recorded consequence that Proposal 582 handed with zero votes in opposition to.
Bitquery says 344,780 COMP arrived in a DAO reserve wallet at 09:46 UTC on May 5, 58 minutes earlier than the snapshot mounted voting energy. That pockets had delegated its votes to the Compound Foundation, which backed the plan.
The hyperlink between the reserves spent and the COMP acquired runs by means of a Binance account, and public chain knowledge alone can’t show the withdrawal’s funding account.
The buy has reopened a dispute over the Foundation’s authority to use DAO belongings in governance. Compound discussion board delegate ugurmersin alleged on Sept. 27 that the conversion and delegation breached the reserve mandate.
In a Sept. 28 response, the Foundation stated the conversion was in line with the mandate’s governance-continuity function, the COMP remained DAO-owned, and none of the belongings had been spent on Foundation operations.
Why the additional votes have been key within the Compound proposal
Bitquery counted 1,883,966 votes finally forged for the plan out of 3,757,805 whole delegated votes on the May 5 snapshot. Supporters managed 50.1% of the voting energy accessible for that vote, so even when each different delegate had voted no, they may not have outvoted the supporters.
By subtracting the 344,780 COMP from the reserve pockets, the identical supporters would have held 1,539,186 of a decreased 3,413,025-vote whole (45.1%), leaving sufficient voting energy outdoors their bloc to defeat the plan.
Tally recorded roughly 1.88 million votes for Proposal 582 and none in opposition to, so the plan would nonetheless have cleared its 400,000-vote quorum with out the reserve-wallet COMP.
The $52 million determine describes an accepted V4 program funds. Proposal 582 designated $14 million for a Foundation-controlled operational pockets and $38 million for a Treasury Management Committee pool, with releases tied to milestones.
The earlier Proposal 536 positioned roughly 8.42 million DAI of previous protocol reserves underneath Foundation stewardship for protocol operations and governance continuity. It saved the belongings DAO-owned and excluded discretionary buying and selling and Foundation-specific bills.
The Foundation and the delegate disagree over whether or not changing these reserves into voting energy match these limits. The May vote’s end result is settled, however the authority to make that conversion stays contested.
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