A Compound community member, ugurmersin, said on Sept. 28 that the Compound Foundation misused v2 DAI reserves that had been placed under its custody earlier this year. According to the claim, Proposal 536 in February transferred about 8.42 million DAI to the foundation with clear restrictions: the funds were to be used only for protocol operations, could not be used for speculative trading, still belonged to the DAO, and were not meant to cover the foundation’s own expenses.
ugurmersin said on-chain records show the funds were later sent to a trading platform and exchanged for about 344,800 COMP. The tokens were then delegated to the foundation’s voting address roughly 58 minutes before voting closed on Proposals 580 and 582. The community member further alleged that this helped push nearly all DAO funds into TMC and secure passage of a V4 plan worth about $52 million that benefited the foundation, while the funds were still being described publicly by multiple parties as “liquidity DAI.”
The Compound Foundation had not responded at the time of publication.
BlockBeats reported on Sept. 28 that Compound community member ugurmersin had accused the Compound Foundation of misusing the protocol’s v2 DAI reserves.
According to ugurmersin, Proposal 536 passed in February and placed about 8.42 million DAI under the foundation’s custody. The proposal, he said, limited the funds to protocol operations only, barred speculative trading, kept ownership with the DAO, and did not allow the money to be used for the foundation’s own expenses.
He said on-chain records show the funds were later transferred to a trading platform and exchanged for about 344,800 COMP. Those tokens were then delegated to the foundation’s voting address around 58 minutes before voting closed on Proposals 580 and 582.
ugurmersin also alleged that the move helped push nearly all DAO funds into TMC and pass a V4 plan worth about $52 million that was favorable to the foundation. During that period, he said, multiple parties still referred to the funds publicly as “liquidity DAI.”
The Compound Foundation had not issued a response as of publication.
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