Compound Finance Dodges Controversy as ‘Golden Boys’ Back Down

LUCKNOW (CoinChapter.com) – The recent governance controversy surrounding Compound Finance appears to be heading towards a peaceful resolution. The “Golden Boys,” a voting bloc accused of orchestrating a “governance attack” on the DeFi lending protocol, have agreed to withdraw their contentious proposal in favor of a more community-friendly alternative.

The drama began on July 28 when a proposal from a group called the “Golden Boys” narrowly passed. Their plan, known as Proposal 289, aimed to create a new token called “goldCOMP” using $25 million worth of COMP tokens from Compound Finance’s treasury. While purportedly aimed at providing passive income for COMP holders, the proposal granted significant discretionary investment power to the Golden Boys. Many saw this idea as a potential threat to Compound’s democratic governance.

Proposal 289 Withdrawn in Favor of Community-Friendly Alternative

However, on July 30, a member of the Golden Boys, known as “Humpy,” agreed to withdraw the proposal. This change of heart came after talks with Bryan Colligan, who leads Compound’s growth team at AlphaGrowth.

Colligan presented a new idea that seems to make both sides happy. The new plan suggests giving 30% of Compound’s current and future market reserves to COMP token holders who stake their tokens. This approach aims to reward long-term supporters without giving too much control to any one group.

“Humpy” publicly backed this new direction, saying, “I fully approve this message.” Other big players in the Compound community, like Gauntlet and WintermuteGovernance, also showed support for exploring this staking option.

The Compound team and community members seem relieved by this outcome. Consensys, another major player in the crypto world, said, “We are pleased to see this issue nearing a reasonable closure and greatly appreciate the participation of all delegates in resolving this matter.”

COMP Soared by 10%

The news of this agreement has already had a positive effect on COMP’s price. The token’s value jumped 10% in just 12 hours after the announcement, reaching $51.55.

However, it’s worth noting that COMP, like many other DeFi tokens, is still far below its peak value. The token remains 94% lower than its all-time high of $910, set back in May 2021.

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