Compound DAO Faces Internal Split Over $52M COMP Buyback

Key Facts

1Compound DAO utilized protocol reserves to purchase 344,780 COMP tokens valued at $52 million.

2Some delegates labeled the move a mandate breach, while the Foundation maintained it aligned with the DAO's mandate.

Compound DAO utilized protocol reserves to purchase 344,780 COMP tokens valued at $52 million. CryptoSlate reported that the move has caused an internal rift, with some delegates labeling the transaction a breach of the governance mandate, while the Foundation maintained the action aligned with the DAO's objectives.

The buyback resulted in a significant consolidation of voting power within the protocol. According to Bitquery, the purchase pushed supporters of the move above 50% of delegated power, sparking allegations regarding the legitimacy of the governance process and the strategic use of protocol reserves.