Compound Foundation Faces Allegations Over 8.42M DAI Treasury Use
A reported conversion moved 8.42 million DAI into 344,780 COMP tokens before key governance votes, raising questions about treasury control.
The Compound Foundation faces allegations that it improperly used 8.42 million Dai (DAI) from Compound’s reserves to obtain voting power ahead of key governance decisions.
Crypto monitor ugurmersin alleged that a February proposal placed the DAI under the foundation’s management for protocol operations only, barring autonomous trading or speculative activity. The funds remained the property of the decentralized autonomous organization, or DAO, under the proposal’s terms.
Blockchain records cited in the allegation indicate that the DAI was transferred to an exchange and converted into 344,780 COMP tokens. The tokens were then delegated to the foundation’s own voting address, according to the allegation.
The COMP was returned 58 minutes before the deadlines for proposals 580 and 582. The voting power was used to support a plan that would place nearly all DAO funds under TMC management, along with a $52 million V4 initiative. The foundation is one of TMC’s signers.
The claims put the foundation’s treasury management and governance role at the center of the dispute.
