{"id":13840,"date":"2026-09-29T03:02:37","date_gmt":"2026-09-29T03:02:37","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=13840"},"modified":"2026-09-29T03:02:37","modified_gmt":"2026-09-29T03:02:37","slug":"compound-dao-used-protocol-reserves-to-buy-52-million-worth-of-comp-and-delegates-call-it-a-mandate-breach","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=13840","title":{"rendered":"Compound DAO used protocol reserves to buy $52 million worth of COMP, and delegates call it a mandate breach"},"content":{"rendered":"

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A new on-chain reconstruction says COMP acquired, through Compound DAO reserves, a majority of all delegated voting power at a May snapshot. That position did not change the recorded result that Proposal 582 passed with zero votes against.<\/p>\n

Bitquery says 344,780 COMP arrived in a DAO reserve wallet at 09:46 UTC on May 5, 58 minutes before the snapshot fixed voting power. That wallet had delegated its votes to the Compound Foundation, which backed the plan.<\/p>\n

The link between the reserves spent and the COMP received runs through a Binance account, and public chain data alone cannot prove the withdrawal’s funding account.<\/p>\n

The purchase has reopened a dispute over the Foundation’s authority to use DAO assets in governance. Compound forum delegate ugurmersin alleged on Sept. 27 that the conversion and delegation breached the reserve mandate.<\/p>\n

In a Sept. 28 response, the Foundation said the conversion was consistent with the mandate’s governance-continuity purpose, the COMP remained DAO-owned, and none of the assets had been spent on Foundation operations.<\/p>\n

Why the extra votes were key in the Compound proposal<\/h2>\n

Bitquery counted 1,883,966 votes eventually cast for the plan out of 3,757,805 total delegated votes at the May 5 snapshot. Supporters controlled 50.1% of the voting power available for that vote, so even if every other delegate had voted no, they could not have outvoted the supporters.<\/p>\n