‘Golden Boys’ behind Compound ‘governance attack’ agree to rescind proposal
The people behind a recent so-called “governance attack” on lending and borrowing protocol Compound Finance has agreed to rescind their controversial proposal in place of an alternative.
The proposal from the Compound governance voting bloc “Golden Boys” narrowly passed on July 28 despite community opposition, leading to accusations of a governance attack.
Proposal 289 was to create a wrapped “goldCOMP” token and treasury using 499,000 COMP tokens — worth around $25 million at the time — to provide passive income for COMP holders but could be invested at the discretion of the Golden Boys.
However, it appears that as of July 30, a member of the “Golden Boys,” going by the pseudonym “Humpy,” agreed to rescind the controversial proposal in place of a new one.
According to a post outlining a proposal by Bryan Colligan, Compound’s growth team CEO at AlphaGrowth, on July 30, the two have come to an agreement at the request of Humpy.
The new proposal is for a new staking product that addresses the interests of the Golden Boys without jeopardizing Compound DAO governance , said Colligan.
Screenshot of Compound staking proposal. Source: comp.xyzThe new proposal recommends distributing 30% of both existing and upcoming market reserves to COMP stakers — based on the amount they stake.
It stated, “The Compound Growth Program, with backing from major delegates in the Compound community, will execute on the commitments, given the immediate cancellation of Proposal 289.”
“Humpy” replied to the proposal in the comments section, saying, “I fully approve this message.”
Other large Compound stakeholders, such as blockchain service provider Gauntlet and WintermuteGovernance also responded, stating that it “supports exploring a Compound staking product.”
“We are pleased to see this issue nearing a reasonable closure and greatly appreciate the participation of all delegates in resolving this matter,” added Consensys.
Related: Compound Finance proposals elicit ‘governance attack’ allegations
The DeFi protocol’s native token, COMP, rebounded on the development, adding 6% over the past 12 hours to trade at $51.55 at the time of writing, according to CoinGecko.
However, like most DeFi tokens, it has been hit hard in recent years and remains down 94% from its May 2021 all-time high of $910.
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