Cryptocurrency exchange Binancedecentralized stock market Uniswapby making a move to take part in the management process of Uniswap DAOIt has become the second largest asset by voting power in .
Cryptocurrency Exchange Binance Uniswap Becomes Second Largest Organization by Voting Power in DAO
Uniswap is a decentralized exchange system. It is one of the decentralized exchange structures known among DeFi projects. Uniswap basically ERC-20 It is a protocol that can be exchanged tokens through smart contracts without a center or administrator.
Binance has transferred 13.2 million UNI tokens to its own wallet, meaning the exchange will now be able to use these tokens to vote on management decisions that affect the protocol within the Uniswap DAO.
Binance now has 5.9% of voting power, which is calculated as the percentage of transferred tokens in all transferred tokens. Having 6.7% of the votes crypto VC firm a16z is behind it.
This is due to concerns that Binance may use the exchange’s users’ tokens to participate in governance for its own purposes. Hayden, founder of Uniswap Adams has caused some concerns.
Adams said on Twitter that this is a very unique situation as it technically belongs to UNI users.
yesterday @binance delegated 13M UNI from its books, making it one of the largest UNI delegates (this is only 1.3% of current delegated UNI so governance voting power remains quite distributed)
Very unique situation, as the UNI technically belongs to its users. pic.twitter.com/bwsVb1IwKR
— hayden.eth 🦄 (@haydenzadams) October 19, 2022
Stating that more management participation is normally good, Adams noted that it is unclear how Binance plans to participate in the management system.
Binance’s rollover represents 1.3% of the total UNI supply. This rate is above the 0.25% threshold required to propose a management vote, but below the 4% vote required for the vote to pass.
The voting threshold was recently lowered following a management vote.
*Not investment advice.
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