Compound Foundation Accused of Improper Use of 8.42 Million DAI Reserves

Members of the Compound community, led by ugurmersin, have accused the Compound Foundation of improperly using 8.42 million DAI reserves. Proposal 536 from February transferred the DAO's DAI reserves to the Foundation for management, explicitly stating that the funds were to be used solely to support protocol operations and were not to be engaged in autonomous trading or speculative activities, remaining entirely owned by the DAO and not to be used for funding specific operations of the Foundation. However, on-chain records indicate that this DAI was transferred to an exchange in exchange for 344,780 COMP tokens and entrusted to the voting address of the Foundation, which was then returned 58 minutes before the deadlines of proposals 580 and 582. As a result, the Foundation gained voting power, pushing for nearly all DAO funds to be managed by TMC, with a $52 million V4 plan, of which the Foundation is one of TMC's signatories. The poster believes that the Foundation has unauthorizedly used the DAO's COMP, directing resources towards itself.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.