# Compound Delegates Say the Foundation Used DAO Reserves to Buy the Votes That Approved Its Own Budget

On-chain records show reserve funds converted into 344,780 COMP and delegated to the Foundation's voting address, returned less than an hour before two proposal deadlines.

- Published: 2026-09-29T05:41:12.286Z
- Canonical: https://polylog.news/crypto/2026-09-29/compound-delegates-say-the-foundation-used-dao-reserves-to-b
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [CryptoSlate](https://cryptoslate.com/compound-dao-used-protocol-reserves-to-buy-52-million-worth-of-comp-and-delegates-call-it-a-mandate-breach/), [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/1dee165a8760240238590a2a3f46ceec8810c534), [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/8d774f11cf023bde9fd7691abae7ea943db01110)

A governance dispute at Compound, one of the oldest lending protocols on Ethereum, turns on where voting power came from. In February, Proposal 536 placed 8.42 million dai of protocol reserves under the Compound Foundation's management, wit…

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