COMP Plunges 6.7% After Alleged ‘Governance Attack’ on Compound DAO

  cryptonews.net 13 h

A group called the “Golden Boys” pushed through the proposal after three previous attempts to direct $24 million in COMP tokens into a yield-bearing protocol called goldCOMP that would provide passive income to COMP token holders. Wintermute and other major stakeholders are concerned that the move represents a governance attack on the protocol. COMP, the native token of lending protocol Compound, has fallen more than 6% as the Decentralized Autonomous Organization (DAO) that runs the protocol has suffered a possible “governance attack.”

According to posts on the Compound forums, the governance attack on Compound involved a series of coordinated efforts to manipulate the platform’s decision-making process through significant delegations of COMP tokens, led by a whale named Humpy, who attempted to allocate $24 million worth of COMP to a yield protocol he controls called goldCOMP, run by a group known as the Golden Boys. This group has made several attempts, and their latest attempt has finally passed.

While some have claimed that this is an attempt by Humpy and the Golden Boys to “steal funds”, Humpy has hit back by stating that their now accepted GoldCOMP fund uses a “Trust Setup with a constraint set of actions that doesn’t permit stealing/diverting of funds”. However, in response to the Golden Boys’ proposal being approved, the community put forward a motion to put limits on what they can do.

Image: Coin Bilgi

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