A Compound community member has accused the Compound Foundation of improperly utilizing 8.42 million DAI from DAO reserves to influence governance outcomes. Although Proposal 536 authorized the Foundation to manage these funds strictly for protocol operations and explicitly prohibited discretionary trading, on-chain records indicate the DAI was swapped for 344,780 COMP tokens via an exchange.
The acquired COMP was reportedly delegated to the Foundation’s voting address just 58 minutes before critical deadlines for Proposals 580 and 582. This voting power allegedly enabled the passage of a $52 million V4 plan that placed nearly all DAO funds under TMC management, an entity where the Foundation serves as a signer. The accusation asserts this constituted unauthorized use of DAO resources to direct benefits toward the Foundation itself.
Compound Foundation Accused of Misusing 8.42M DAI Reserves to Secure Voting Power
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