PANews
PANews|Sep 28, 2026 09:48
[Compound Foundation Accused of Misusing 8.42 Million DAI Reserves] Compound community member ugurmersin published a post accusing the Compound Foundation of improperly using v2 DAI reserves. The post stated that Proposal 536 in February allocated 8.42 million DAI in DAO reserves to the Foundation for management, with conditions explicitly limiting its use to 'supporting protocol operations only,' prohibiting 'independent trading or speculative activities,' and stipulating that it remains 'entirely owned by the DAO' and 'must not be used to fund specific operations of the Foundation.' However, on-chain records show that this DAI was sent to an exchange and swapped for 344,780 COMP, which was then delegated to the Foundation's own voting address and returned 58 minutes before the deadlines for Proposals 580 and 582. The Foundation used this to gain voting power, pushing to transfer nearly all DAO funds to TMC for management and approving a $52 million V4 plan, with the Foundation being one of TMC's signatories.
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