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Bitquery challenges Compound DAO reserve spending in COMP vote
Bitquery estimates 344,780 COMP entered a DAO reserve wallet 58 minutes before a May snapshot, after which Proposal 582 passed with zero votes against.
A new on-chain reconstruction cited by Bitquery says Compound DAO reserves were used to acquire a large stake in COMP shortly before a May governance snapshot, then supporters backed a proposal that passed without opposition. According to the reconstruction, 344,780 COMP arrived in a DAO reserve wallet at 09:46 UTC on May 5, 58 minutes before the snapshot fixed voting power.
Bitquery also links the reserve spending to COMP received through a Binance account, while noting that public chain data alone cannot identify the withdrawal's funding account. The dispute centers on whether the Compound Foundation had authority to use DAO assets in governance after delegates were said to have been delegated to the Foundation.
In the May vote result, the position recorded at the snapshot did not change the outcome that Proposal 582 passed with zero votes against. Bitquery counted 1,883,966 votes cast in favor out of 3,757,805 total delegated votes at the May 5 snapshot.
The Compound Foundation rejected the challenge, according to CryptoSlate, saying the conversion matched a reserve mandate focused on governance continuity, that COMP remained DAO-owned, and that none of the assets were spent on Foundation operations. The dispute has been reopened after delegate ugurmersin alleged on Sept. 27 that the conversion and delegation breached the reserve mandate.