A gaggle known as the ‘Golden Boys’ has, after three earlier makes an attempt, pushed by a proposal to spend $24 million of COMP token on a yield-bearing protocol known as goldCOMP, which would supply passive earnings for COMP token holders.
Wintermute and different main stakeholders are involved that this transfer represents a governance assault on the protocol.
COMP, the native token of the Compound lending protocol, has fallen by greater than 6% because the decentralized autonomous group (DAO) that runs the protocol suffers from a possible ‘governance assault’.
A governance assault happens when an attacker beneficial properties important voting energy in a DAO to control the protocol for private achieve, benefiting from the permissionless and tradable nature of governance tokens.
In accordance with posts on Compound’s boards, the governance assault on Compound concerned a collection of coordinated makes an attempt to control the platform’s decision-making course of by important COMP token delegations led by a whale named Humpy, who tried to allocate $24 million in COMP to a yield. -carrying protocol he managed, known as goldCOMP, run by a bunch often called Golden Boys.
This group made a number of makes an attempt, with their final try in the end succeeding.
The group assault started weeks in the past, in early Might, with Proposition 118, which known as for transferring 5% of COMP’s treasury to a multi-sig pockets managed by the Golden Boys. This proposal was not adopted as group members highlighted suspicious circumstances surrounding its introduction.
The group adopted up with a second proposal, Proposition 247, which tried an identical strategy. It known as for investing 5% of COMP tokens right into a goldCOMP vault, which would supply passive earnings for COMP holders. This proposal failed to succeed in a quorum and was canceled.
Lastly, the group tried once more with Proposition 289, which handed.
Whereas some have claimed that that is an try by Humpy and the Golden Boys to “steal funds,” Humpy hit again by saying that their now-approved GoldCOMP fund makes use of a “Belief Setup” with a collection of restrictive actions that don’t permit this . stealing/embezzling cash.”
Nevertheless, in response to the Golden Boys’ “no enlightenment” proposal, the group has filed a movement to place limits on what they’ll do.
Proposal 290, which might be voted on in simply over a day, goals to transition the Timelock Admin, a sensible contract that queues administrative actions, requiring a two-day delay earlier than they’re executed, thus serving to the group has extra time to reply.
Whereas this will hinder future governance assaults, it’s unclear whether or not this can cease the Golden Boys from transferring the COMP tokens they had been on the lookout for.