Compound Scandal - A Warning for DAO Governance
Compound Finance recently faced a major scandal involving governance proposal 289 by the Golden Boys group, led by Humpy. The proposal aimed to allocate 5% of COMP tokens, worth $24 million, to their Vault goldCOMP with promises of a 5% annual return for COMP holders.

Concerns arose when funds were set to transfer directly to the Golden Boys' controlled wallet. It was discovered that 35 supportive voting addresses were closely linked, with few real COMP holders participating.

In response, Compound introduced proposal 290 to block the Golden Boys' plan. An agreement was reached to launch a Staking product and distribute revenue to COMP holders, with Humpy withdrawing proposal 289.

This incident highlights vulnerabilities in DAO governance, where even large projects like Compound can be manipulated due to lax governance and community inattention, allowing control by a few entities.

Seems to have worked out and Compound will be better for it.