Fun

Compound Finance proposals elicit ‘governance attack’ allegations

News Feed - 2024-07-29 06:07:37

Tristan Greene2 hours agoCompound Finance proposals elicit ‘governance attack’ allegationsCommunity risk assessors warned against the perceived centralization effort days before the proposal’s passage.660 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksCompound Finance, a decentralized lending and borrowing protocol, appears to be going through a tumultuous community disagreement over governance, according to community forums and a slew of recent proposals. 


The passage of proposal 289, on July 28, appears to be the catalyst for a series of allegations on social media that a governance attack has occurred as perpetuated by a voting bloc called the “Golden Boys.”Source:Dr. Nick.


Over on the Compound governance message boards, insiders specifically warned such an event would occur just days before as discussions over the proposals played out.Governance attack?


On May 6, 2024, Compound Governance shot down proposal 247 when it failed to reach a quorum. The proposal, dubbed “Treasury to Invest 5% of COMP holdings into goldCOMP Vault,” was subsequently cancelled.


The intent of the proposal, according to one of its purported supporters, was to establish a wrapped COMP token called “GoldCOMP” that would be held in a separate treasury operated by the Golden Boys and funded by COMP. This, claimed Golden Boy "Humpy," in order to provide an additional layer of “passive income” for COMP holders, which would be invested and divested at the discretion of the Golden Boys.


Per a post from Golden Boy member Humpy:“When a user places COMP into the goldCOMP vault, the depositor receives goldCOMP, a semi-liquid wrapped token representing their initial deposit. These goldCOMP tokens can be placed in a 99/1 Balancer pool, creating a passive income stream for COMP holders who plan to hold COMP for a long period of time.”


An updated proposal from the bloc, number 279, failed to pass a July 19 vote. It purportedly requested “a one-year investment of 92,000 COMP” be sent to the goldCOMP Treasury Fund."


On Compound Governance message boards, around the time of 279"s failure, “Wintermute Governance,” representing the Wintermute bloc, expressed concerns the Golden Boys proposal would give the group complete control over the transferred funds. 


“Any form of withdrawal action (divest) is solely controlled by GoldenBoyzMultisig,” wrote Wintermute, adding that the separate vault “delegates the deposited COMP’s governance rights to the GoldenBoyzMultisig.”


Michael Lewellen, of the OpenZeppelin bloc, under the username “cylon” went so far as to state that the Golden Boys proposal could be perceived as a governance attack:“In my personal opinion, the actions of Humpy and the Golden Boys can be considered a governance attack if they persist in their attempts to take funds from the protocol in clear opposition to the will of all other Compound DAO delegates’.Proposals 289 and 290


On July 28, a subsequent proposal, number 289, from the Golden Boys passed by a measure of 682,191 for to 633,636 against. The new proposal upped the amount of COMP requested to fund the goldCOMP treasury from 92,000 to 499,000.


As of the time of this article’s publication, 289’s passage indicates an implementation date of July 30. It’s been followed by proposal 290, “Precautionary Transfer of Timelock Admin,” which proposes sending the Compound Governance Timelock Admin to “CommunityMultiSig.”


Transferring the Timelock Admin could potentially stymie future efforts to pass proposals similar to the Golden Boys. But it might be a case of too little too late when it comes to proposal 289.


The 499,000 COMP requested — worth approximately $24.1 million as of the time of this article’s publication — will likely still move to the goldCOMP treasury fund on or around July 30 per the terms of proposal 289’s passage.# Blockchain# Business# Decentralization# DAO Attack# DeFi# Compound# Governance TokenAdd reaction

News Feed

Bank of Spain Report Warns About Cryptocurrency Usage and Its Effect on Financial Stability
Bank of Spain Report Warns About Cryptocurrency Usage and Its Effect on Financial Stability The Bank of Spain has issued a new report that touches on the subject of the popularity
Vermont Rapper Releases Hip Hop Track ‘#Freeross,’ Ulbricht Petition Nears 300K Signatures
Vermont Rapper Releases Hip Hop Track "#Freeross," Ulbricht Petition Nears 300K Signatures Southern Vermont-based hip-hop artist, Krypto Man, has released a new single called &ld
Africrypt Bitcoin Heist: Contradicting Reports About the Directors Whereabouts Surface
Africrypt Bitcoin Heist: Contradicting Reports About the Directors Whereabouts Surface In a new twist to the Africrypt saga, two different reports have made cont
Prashant Jha10 hours agoMoneyGram to launch noncustodial crypto wallets by Q1 2024The noncustodial wallet will continue MoneyGram’s remittance focus, allowing users to easily convert their digital assets to fiat.1205 T
Gareth Jenkinson10 minutes agoCalifornia commission outlines campaign disclosure requirements for cryptoThe California Fair Political Practices Commission has released disclosure requirements for cryptocurrency contribut
Ana Paula Pereira9 hours agoBitget and crypto influencer embroiled in legal saga after Reel Star token listing fiascoEvan Luthra says Bitget froze his account in April. The exchange claims it was done on suspicions of ma
EU Bans Crypto Services for Russians in New Sanctions Over Ukraine Escalation
EU Bans Crypto Services for Russians in New Sanctions Over Ukraine Escalation An array of crypto-related services have been targeted in the latest round of sanctions on Russia appr
20 More Block Rewards from 2010 Spent Today— Why Are Decade-Old Bitcoins Waking Up?
20 More Block Rewards from 2010 Spent Today— Why Are Decade-Old Bitcoins Waking Up? Following the 21 coinbase rewards from 2010 spent on November 7, another lo
Ethereum Faces Stress As Israel-Iran Conflict Shakes Sentiment – ETH/BTC Support In Focus
Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and pu
Kyrgyzstan Central Bank Is Set to Introduce Bills to Monitor Crypto Exchanges Activities and Forcing Them to Apply for Permits
Kyrgyzstan Central Bank Is Set to Introduce Bills to Monitor Crypto Exchanges Activities and Forcing Them to Apply for Permits The National Bank of the Kyrgyz Re
Solana ETF in the works: 3iQ files for new ETP in Canada
Brayden Lindrea1 hour agoSolana ETF in the works: 3iQ files for new ETP in CanadaThe Solana product, QSOL, seeks to provide shareholders with staking yield accrued from the Solana network.349 Total viewsListen to article
Crypto Association in Turkey Vows to Block Exchanges That ‘Victimize Traders’
Crypto Association in Turkey Vows to Block Exchanges That ‘Victimize Traders’ A new organization has been established in Turkey with the aim to monitor and help develop the cou