1. The event itself

2. Compound DAO was reported this morning to have used the protocol’s reserve funds to buy 344,780 $COMP tokens, worth about $52 million in total. It pushed the voting power of the addresses that support this proposal past the halfway threshold. Many representatives immediately erupted, accusing it of overstepping authority and violating the DAO’s authorization scope. However, the Foundation side insists it fully complies with the existing mandate. Both sides are now arguing so fiercely they’re practically ready to flip the table.

2. Market reaction

It’s currently 1 PM Beijing time, and the midday rest period is the peak for refreshing the order book—real-time quotes are at $23.5, with a 24-hour increase of only 1.03%. They completely didn’t give this positive development any respect at all. Old-timers who’ve been trading DeFi for years know this: protocol buybacks of their own tokens were meant for market support or ecosystem incentives. But now, they just go and spend the treasury’s funds to buy voting power. That’s basically paving the way for themselves with all users’ interests. The money clearly doesn’t buy it—there isn’t even a decent volume breakout.

3. Follow-up tracking

Next, focus on two key variables: first, whether any new delegate will initiate a proposal to overturn this buyback decision; second, whether the remaining reserves under the agreement will be further diverted. This directly affects holders’ confidence in $COMP . Until these governance disputes are resolved, the market is likely to remain in a wide-range, volatile trading pattern. If you already hold spot positions, don’t panic. If you want to enter, wait until the voting outcome is clear—don’t become the bag-holder for emotions.

4. Factional interaction

The community is in an uproar right now. Do you think Compound’s recent buyback is a reasonable attempt to prop up the market, or a blatant theft of user assets? If you think it’s reasonable, deduct 1; if you think it’s a violation, deduct 2. Don’t let short-term price swings throw you off. Until governance-related risk events are resolved, don’t go all-in betting on a direction.

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