Compound Foundation denies misuse of V2 reserve funds amid governance controversy
Compound (COMP)
Editor:
Eugene Serbin
cryptobriefing.com reports that the Compound Foundation has denied allegations of misusing V2 reserve funds during a recent governance dispute. On September 27, delegate ugurmersin claimed that a Foundation-administered reserve wallet acquired COMP tokens and delegated its voting power to the Foundation ahead of May 2026 proposals. On-chain analysis by Bitquery traced most of the reserves through USDC and an exchange-linked trading desk, finding that 344,780 COMP reached the reserve wallet 58 minutes before the voting snapshot for Proposals 580 and 582.
Although the link between outgoing funds and incoming COMP was described as strong, it was not conclusive proof of an off-chain trade. Proposal 536 authorized stewardship of about 8.42 million DAI from deprecated Compound V2 reserves, stating the funds remain DAO-owned and may support protocol operations. However, the proposal bars discretionary trading and the use of those reserves for Foundation-specific operating costs, leaving the compliance of the later conversion disputed.
The disputed COMP did not change the actual vote results because no votes were cast against the proposals. Proposal 580 created a treasury-management committee with a Foundation seat, while Proposal 582 approved a $52 million V4 program budget. This budget allocated $14 million to a Foundation-controlled operational wallet and $38 million to a committee-managed reserve. The unresolved question remains whether the reserve conversion and delegation fit Proposal 536’s mandate, as the transaction record establishes movements but cannot establish intent.
How the market reacted
Whalio's own Binance spot order flow for COMP, measured when this story was written up on 28 September 2026. Not the outlet's figures.
Whalio’s Binance spot data for COMP shows a buy ratio of 56.2% over the last hour and 50.6% over four hours, compared to a 59.4% ratio over the last 24 hours. This indicates that short-term buying pressure is fading relative to the longer daily trend. The volume delta reflects net buying activity, with positive figures of +$3,216 for the hour, +$1,515 for four hours, and +$429,526 for the day. A positive volume delta means buyers are aggressively hitting ask prices, pushing the price upward. The cumulative volume delta at the 24-hour close was +$14,779, confirming sustained net inflows throughout the day.
The latest daily buy ratio of 49.4% sits at the 35th percentile of the last 322 days, against a median of 51.1% - ordinary for this coin.
Was that an ordinary day?
The same Binance spot measurements for COMP, averaged over the days leading up to the story.
Over the preceding week, COMP experienced a 7-day average buy ratio of 52.5%, with the latest day showing a 6.9 point increase above that average. Trading volume was 1.28 times the average, indicating an unusual day of elevated activity compared to the norm. The coin saw net buying on all seven days of the week, with a total volume delta of +$1,057,227 over eight days. This consistent buying pressure contributed to a 9.8% price increase over the eight-day period. The current daily metrics align with this broader weekly trend of steady accumulation and above-average volume.