Chain data flagged by ugurmersin has sparked accusations that the Compound Foundation improperly used the protocol’s v2 DAI reserves. Under Proposal 536, passed in February, 8.42 million DAI in DAO reserves was placed under the foundation’s management with clear restrictions: the funds could only support protocol operations, could not be used for proprietary trading or speculation, remained fully owned by the DAO, and could not finance foundation-specific operations. On-chain records cited in the report show the DAI was sent to an exchange, swapped into 344,780 COMP, and delegated to the foundation’s own voting address. The COMP was then transferred back 58 minutes before voting closed on Proposals 580 and 582. The accusation says the foundation used the voting power to help push measures that would place nearly all DAO funds under TMC management and approve a $52 million V4 plan. The foundation is also identified as one of TMC’s signers.
According to monitoring by ugurmersin, the Compound Foundation has been accused of improperly using the protocol’s v2 DAI reserves.
Under Proposal 536 in February, 8.42 million DAI in DAO reserves was placed under the foundation’s management. The proposal limited the use of those funds to supporting protocol operations and said they could not be used for proprietary trading or speculative activity. It also stated that the funds remained entirely owned by the DAO and could not be used to finance foundation-specific operations.
On-chain records show the DAI was transferred to an exchange, converted into 344,780 COMP, and delegated to the foundation’s own voting address. The COMP was sent back 58 minutes before voting closed on Proposals 580 and 582.
The accusation says the foundation obtained voting power this way, helping push through moves to place nearly all DAO funds under TMC management and approve a $52 million V4 plan. The report also says the foundation is one of TMC’s signers.
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