Compound Community Member Accuses Foundation Over 8.42M DAI Reserve
ugurmersin alleged the reserve was converted into about 344,780 COMP before voting on Proposals 580 and 582 ended.
A Compound community member accused Compound Foundation of improperly using an 8.42 million DAI reserve managed on behalf of the protocol’s decentralized autonomous organization, raising questions about how the funds were handled and used.
ugurmersin alleged that the reserve was sent to exchanges and converted into about 344,780 COMP. ugurmersin said the tokens were later returned to a related Safe.
Voting power was then delegated to a Compound Foundation address, which participated in governance votes before voting on Proposals 580 and 582 ended, ugurmersin alleged.
The community member also pointed to Proposal 536, which established that the funds remained fully owned by Compound’s DAO and were intended only for protocol operations. The proposal also barred independent trading or speculative activity involving the reserve.
Compound Foundation had not responded to the allegations.
