Compound DAO used protocol reserves to buy $52 million worth of COMP, and delegates call it a mandate breach
Summary
An on-chain analysis says Compound DAO reserves supplied 344,780 COMP to a wallet that had delegated its votes to the Compound Foundation, just 58 minutes before the May 5 snapshot for Proposal 582. The purchase gave the proposal’s supporters 50.1% of available voting power. Without those tokens, their share would have been 45.1%, though the proposal would still have met quorum; it passed with about 1.88 million votes for and none against. A delegate argues that converting reserves into voting power violated their mandate. The Foundation says the COMP remained DAO-owned and the action supported governance continuity. The dispute over the Foundation’s authority remains unresolved.
