Golden Boys, a DAO delegate group accused of carrying out a governance attack on Compound Finance, have agreed to rescind the proposal that passed on July 28.
Proposal 289 would have allocated 499,000 COMP tokens, worth $24 million, from the DAO treasury to a yield bearing strategy controlled by the Golden Boys. By some estimates, that would have set up the group’s pseudonymous leader Humpy with enough COMP to influence future governance votes.
Compound governance delegates quickly spun up two proposals to defend against similar threats to protocol governance: a timelock contract that delays the execution of proposals and one that introduces updates to the protocol’s risk parameters. However, these new measures would not have addressed the issue of Proposal 289 being executed.
Humpy has now agreed to cancel the proposal in exchange for the creation of a staking product that meets the group’s interests. A new proposal from AlphaGrowth CEO Bryan Colligan outlines the creation of a new Compound staking product, with a vault that will be under the control of the Compound DAO.
“At the request of Humpy following discussions with Alpha Growth and other Compound delegates, we propose the following staking product that addresses the stated interests of Humpy as a new, recent delegate and COMP holder in return for canceling Proposal 289 due to the governance risks it poses to the protocol,” said Colligan.
As per the terms of the proposal, the staked COMP token product will be developed through the Compound Growth Program resources audited by the protocol’s security partner and evaluated by its risk manager. It would distribute 30% of both existing and upcoming market reserves to COMP stakers proportional to amount they have staked.
“I fully approve this message,” wrote Humpy on the governance forum.
The proposal also received support from other major Compound governance delegates, who had strongly opposed Proposal 289, including Wintermute, Gauntlet and Monet Supply.
“I think this would be a positive outcome for all involved. Also believe that staked COMP would be a positive development that should help improve security of Compound DAO governance,” said Monet Supply.
