The people involved in the alleged ‘governance attack’ on Compound Finance have agreed to revoke their controversial proposal.
Humpy, the pseudonymous member of Golden Boys, agreed to scrape out the proposal, replacing it with a new one that revolves around a staking product that will shield the governance of Compound Decentralized Autonomous Organization [DAO] and simultaneously cater to the group’s interests.
Specifically, it advocates the distribution of 30% of both existing and upcoming market reserves to COMP stakers. The proportion handed out to stakers will be based on the amount they’ve staked.
As recently reported by blocmates, Proposal 289 was unjustly passed when a group of people purchased tokens from the open market to get an additional edge over others and sanction the proposal by voting.
Specifically, the proposal called for a 5% fund diversion from Compound's treasury [499,000 COMP tokens worth around $24 million] to a yield protocol vault designed by the ‘Golden Boys’ for one year.
According to the new proposal, the staked COMP token product will be a vault controlled by the Compound DAO, with the ability to adjust its risk parameters. It clarified,
“The Compound Growth Program, with backing from major delegates in the Compound community, will execute on the above commitments, given the immediate cancellation of Proposal 289.”
In the comment section of the proposal, Humpy gave his stamp of approval.
Compound stakeholders were relieved with the latest development. One user asserted that it’s “great” to finally come to an “amicable” solution. Meanwhile, Consensys executive Cameron ODonnell said,
“We are pleased to see this issue nearing a reasonable closure and greatly appreciate the participation of all delegates in resolving this matter. Here’s to a more secure future.”
On the heels of the community patch-up, COMP climbed above the $50 threshold. At press time it was trading at $51.62, up 6.8% over the past 24 hours.
