A bunch known as the ‘Golden Boys’ has pushed by a proposal, after three prior makes an attempt, to direct $24 million in COMP token to a yield-bearing protocol known as goldCOMP which might give passive revenue to COMP token holders.
Wintermute and different giant stakeholders are involved that the transfer constitutes a governance assault on the protocol.
COMP, the native token of the lending protocol Compound, is down over 6% because the Decentralized Autonomous Group (DAO) that runs the protocol suffers from a potential “governance assault.”
A governance assault happens when an attacker acquires important voting energy in a DAO to govern the protocol for private achieve, exploiting 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 efforts to govern the platform’s decision-making course of by important COMP token delegations led by a whale named Humpy, who sought to allocate $24 million price of COMP to a yield-bearing protocol he managed known as goldCOMP run by a gaggle often called Golden Boys.
This group has made a number of makes an attempt, with their newest try lastly passing.
The group assault started weeks in the past, in early Could, with Proposal 118, which known as for transferring 5% of COMP’s treasury to a multi-sig pockets managed by the Golden Boys, which didn’t cross as a result of neighborhood members highlighted suspicious circumstances round its introduction.
The group adopted up with a second proposal, Proposal 247, which tried an analogous method. It known as for investing 5% of COMP tokens right into a goldCOMP vault, which would supply passive revenue for COMP holders. This proposal failed to achieve a quorum and was canceled.
Lastly, the group tried once more with Proposal 289, which has handed.
Whereas some have alleged that that is an try by Humpy and the Golden Boys to “steal funds”, Humpy, hit again by saying that their now-passed GoldCOMP fund makes use of a “Belief Setup with a constraint set of actions that doesn’t allow stealing/diverting of funds.”
Nevertheless, in response to the Golden Boys’ geen-lit proposal, the neighborhood put ahead a movement to place limits on what they will do.
Proposal 290, which is able to open for voting in simply over a day, goals to switch the Timelock Admin, a wise contract that queues governance actions, requiring a two-day delay earlier than execution, giving the neighborhood extra time to react.
Whereas this will impede future governance assaults, it is unclear whether or not it should cease the Golden Boys from transferring the COMP tokens they had been after.
