The “Golden Boys” behind the Compound governance attack have agreed to withdraw their controversial proposal following community backlash.
The individuals responsible for a recent “governance attack” on the lending and borrowing protocol, Compound Finance, have consented to withdraw their controversial proposal in favor of an alternative.
Despite the opposition of the community, the proposal from the Compound governance voting faction “Golden Boys” narrowly passed on July 28, resulting in accusations of a governance attack.
The purpose of Proposal 289 was to establish a sealed “goldCOMP” token and treasury using 499,000 COMP tokens, valued at approximately $25 million. This token was intended to generate passive income for COMP holders but could be invested at the Golden Boys’ discretion.
Nevertheless, it seems that a member of the “Golden Boys,” who goes by the pseudonym “Humpy,” has consented to rescind the controversial proposal in favor of a new one as of July 30.
Bryan Colligan, the CEO of AlphaGrowth’s Compound growth team, posted a proposition on July 30. The two have reached an agreement at the request of Humpy.
Colligan stated that the new proposal is for a new staking product that addresses the Golden Boys’ interests without compromising the Compound DAO‘s governance.
The new proposal recommends distributing 30% of existing and upcoming market reserves to COMP stakers — based on the amount they stake.
It stated, “The Compound Growth Program, with backing from major delegates in the Compound community, will execute on the commitments, given the immediate cancellation of Proposal 289.”
“Humpy” replied to the proposal in the comments section, saying, “I fully approve this message.”
Other large Compound stakeholders, such as blockchain service provider Gauntlet and WintermuteGovernance, also responded that it “supports exploring a Compound staking product.”
“We are pleased to see this issue nearing a reasonable closure and greatly appreciate the participation of all delegates in resolving this matter,” added Consensys.
According to CoinGecko, the native token of the DeFi protocol, COMP, has surged by 6% in the past 12 hours and is currently trading at $51.55, following the development.
Nevertheless, it has been severely impacted in recent years, and it is currently down 94% from its all-time high of $910 in May 2021, as is the case with the majority of DeFi tokens.
