Unraveling the Compound Finance Governance Crisis 🌐
Compound Finance, a decentralized lending and borrowing protocol, finds itself at the center of a governance crisis surrounding recent controversial proposals. Dive into the unfolding saga to understand the intricacies of the situation.
Community Debates COMP Proposal 🗳️
– Vote on proposal 247 ends due to lack of support
– Titled “Treasury to Invest 5% of COMP into goldCOMP Vault”
– Proposal aimed to create wrapped COMP token “GoldCOMP”
– Managed by Golden Boys and funded by COMP for long-term investments
– Updated proposal 279 also fails to pass on July 19
– Seeks a one-year investment of 92,000 COMP into goldCOMP Treasury Fund
– Concerns raised about Golden Boys potentially gaining excessive control over funds
– Wintermute Governance bloc voices fears about governance delegation
– OpenZeppelin bloc warns of possible governance attack by Golden Boys
Proposals 289 and 290 📜
– Proposal 289 by Golden Boys passes on July 28
– Increases COMP requested for goldCOMP treasury from 92,000 to 499,000
– Approval leads to implementation on July 30
– Introduction of proposal 290 suggests transferring Timelock Admin to “CommunityMultiSig” to prevent future controversial proposals
– Critics question effectiveness of precautionary measures
Repercussions and Future Outlook ⚡
– $24.1 million worth of COMP set to transfer to goldCOMP treasury fund post-implementation
– Compound Finance website faces hijacking incident earlier in the month
– Investigated by ZachXBT
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