# Compound Negotiates End to Governance Crisis

*Author: Jack Inabinet*
*Published: Jul 30, 2024*
*Source: https://www.bankless.com/compound-negotiates-crisis*

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Crypto lending protocol Compound Finance has managed to stave off [death via centralized takeover](https://www.bankless.com/compound-dao-whale-voter) through a last-ditch COMP staking proposal.

## **What's the scoop?**
- This weekend, COMP whale Humpy pushed through a contentious governance proposal that would have allocated 1/4th of the Compound Treasury—499k COMP worth ~$25 million—to their Golden Boys goldCOMP strategy vault.
- In exchange for Compound’s commitment to create a staked COMP product that distributes 30% of revenues generated from lending and liquidity providing activities to COMP stakers, Humpy has [agreed](https://www.comp.xyz/t/alphagrowth-stake-compound-product/5478/3) to cancel their prior proposal.
- Notably, implementation of the earlier controversial proposal would have granted the whale unprecedented control over Compound’s governance process, enabling them to wield near unilateral discretion in approving whatever proposals they please.

## **Bankless take:**
COMP holders should rejoice that Humpy’s proposal resulted in enhanced token utility instead the creation of an all-powerful giga-delegate, yet although the presence of staking marginally improves COMP’s fundamentals, it nonetheless remains highly concerning that this proposal was passed in the first place.

> 1/ Compound Governance Attack Pt. 3TLDR: Humpy negotiates a new [@compoundfinance](https://twitter.com/compoundfinance?ref_src=twsrc%5Etfw) [$COMP](https://twitter.com/search?q=%24COMP&src=ctag&ref_src=twsrc%5Etfw) Staking Product. Vault receives 30% of current reserves + net new reserves, totaling *at least* ~11.5m * 0.3 ⇒ $3.45m USD (it is unclear if V2 reserves are included as well). [pic.twitter.com/y776MbRROS](https://t.co/y776MbRROS)— omer (@omeragoldberg) [July 29, 2024](https://twitter.com/omeragoldberg/status/1818057810686656774?ref_src=twsrc%5Etfw)
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