Compound DAO used protocol reserves to buy $52 million worth of COMP, and delegates call it a mandate breach
Bitquery says 344,780 COMP pushed supporters above half of delegated voting power; the Foundation says the move fit its DAO mandate. The post Compound DAO used protocol reserves to buy $52 million worth of COMP, and delegates call it a mandate breach appeared first on CryptoSlate.
A new on-chain reconstruction says COMP acquired, through Compound DAO reserves, a majority of all delegated voting power at a May snapshot. That position did not change the recorded result that Proposal 582 passed with zero votes against.
Bitquery says 344,780 COMP arrived in a DAO reserve wallet at 09:46 UTC on May 5, 58 minutes before the snapshot fixed voting power. That wallet had delegated its votes to the Compound Foundation, which backed the plan.
The link between the reserves spent and the COMP received runs through a Binance account, and public chain data alone cannot prove the withdrawal's funding account.
The purchase has reopened a dispute over the Foundation's authority to use DAO assets in governance. Compound forum delegate ugurmersin alleged on Sept. 27 that the conversion and delegation breached the reserve mandate.
In a Sept. 28 response, the Foundation said the conversion was consistent with the mandate's governance-continuity purpose, the COMP remained DAO-owned, and none of the assets had been spent on Foundation operations.
Bitquery counted 1,883,966 votes eventually cast for the plan out of 3,757,805 total delegated votes at the May 5 snapshot. Supporters controlled 50.1% of the voting power available for that vote, so even if every other delegate had voted no, they could not have outvoted the supporters.