BONK Price Falls After BonkDAO Treasury Loses $20 Million in Governance Attack

• A single wallet gained enough voting power to approve a $20 million BONK treasury transfer.
• BonkDAO confirmed the governance proposal resulted in the loss of 4.42 trillion BONK tokens.
• BONK price declined 10% after the treasury incident and traded near $0.000004260..

BONK faced selling pressure after BonkDAO confirmed that a wallet used its governance system to transfer approximately $20 million worth of treasury tokens. The incident involved a malicious proposal that received enough votes to execute the transfer without intervention from the wider community.

Notably, blockchain analysts found that the wallet accumulated voting power before the proposal passed, using purchased BONK tokens and borrowed funds to influence the governance outcome. The event shifted attention toward the risks associated with token-based voting systems.

Wallet Gains Control of BonkDAO Governance Vote

BonkDAO confirmed that the attacker used proposal BIP-76, titled “Sowellian BonkDAO,” to approve the transfer of 4.426 trillion BONK tokens from the treasury to a specific wallet address.

The proposal remained open for six days before execution, allowing token holders to vote on the decision. The final vote reached 882.38 billion BONK in favor and 710.85 million BONK against, narrowly exceeding the required quorum threshold.

According to on-chain analysis, the wallet purchased BONK through exchanges including Binance and Bybit before the vote. Blockchain researchers estimated the wallet spent between $4.4 million and $8 million to obtain enough voting power to pass the proposal.

The transaction highlighted how governance systems that rely heavily on token ownership can allow large holders to gain significant influence over treasury decisions.

BONK Price Drops After Treasury Transfer

BONK declined after the governance event became public, trading near $0.000004260 following a roughly 10% drop. The memecoin remained among the largest Solana-based meme assets by market capitalization.

The price chart showed increased selling activity following the announcement, with trading volume rising as market participants reacted to the treasury loss. The decline came as investors assessed the impact of the missing funds and BonkDAO’s future response.

Meanwhile, blockchain tracking firms identified movements from the receiving wallet. Reports showed that a portion of the funds was transferred to an exchange, while the remaining tokens moved into a multisignature wallet linked to the same actor.

Related: Bitcoin Price Analysis: Q3 Momentum Builds Amid Consolidation

Governance Design Faces New Questions

BonkDAO described the incident as a malicious governance proposal and said it was working with exchanges, bridges, and Solana-related organizations to investigate possible recovery options.

However, some blockchain analysts argued that the event followed the rules of the existing governance structure rather than exploiting a technical vulnerability. The voting system allowed users with enough tokens or borrowed voting power to control proposal outcomes.

The incident has placed renewed attention on DAO governance models, where voting power directly depends on token holdings. BonkDAO’s investigation into the treasury transfer and the movement of the stolen BONK tokens remains ongoing.