A group called the 'Golden Boys' has pushed through a proposal, after three prior attempts, to direct $24 million in COMP token to a yield-bearing protocol called goldCOMP which would give passive income to COMP token holders.
Wintermute and other large stakeholders are concerned that the move constitutes a governance attack on the protocol.
COMP, the native token of the lending protocol Compound, is down over 6% as the Decentralized Autonomous Organization (DAO) that runs the protocol suffers from a possible "governance attack."
A governance attack occurs when an attacker acquires significant voting power in a DAO to manipulate the protocol for personal gain, exploiting the permissionless and tradable nature of governance tokens.
According to posts on Compound's forums, the governance attack on Compound involved a series of coordinated efforts to manipulate the platform’s decision-making process through significant COMP token delegations led by a whale named Humpy, who sought to allocate $24 million worth of COMP to a yield-bearing protocol he controlled called goldCOMP run by a group known as Golden Boys.
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