Compound DAO Faces Backlash Over Use of Reserves for COMP Purchase

Compound DAO is under scrutiny after on-chain data revealed that 344,780 COMP tokens were purchased using protocol reserves shortly before a key governance vote. Delegates allege this action violated the DAO's reserve mandate, as the tokens were used to support Proposal 582. While the Compound Foundation maintains that the conversion was consistent with governance continuity and that the assets remain under DAO ownership, critics argue the move unfairly influenced the vote, which passed with a narrow margin above the 50% threshold.