Binance Denies Using Customers’ UNI For Uniswap Voting

This week, Hayden Adams, founder of Uniswap (UNI), reported that Binance, the largest cryptocurrency exchange in the world, may use UNI tokens from its customers to governance protocol within the platform. It looked like Binance was planning to launch a proposal to propose in which Uniswap would support the BNB Smart Chain and do so with the UNI of its customers. Binance CEO Changpeng Zhao said in a response to Twitter that it was a misunderstanding.

Vote for Uniswap

Uniswap is a popular decentralized cryptocurrencies exchange, or DEX, that runs on the Ethereum (ETH) blockchain. UNI is the associated governance token, which means that token holders can use these tokens to vote on new developments to the platform. 1% of the total amount of UNI is required to make a proposal for other token holders to vote on. 4% of the total amount of tokens must have voted ‘yes’ for a proposal to go through. holders of this cryptocurrency can vote with their tokens themselves, or can choose to merge their tokens into a pool with other uniswap holders. This would select another entity to vote with their UNI tokens.

Binance Voting Power

Binance’s wallet now has enough UNI to cast over 13.2 million votes on DAO governance proposals. Adams revealed that Binance was the second largest delegate is off the platform. Binance has a total of 5.9% of the voting power and compared to the total amount of UNI, the wallet now has 1.3%. Because this percentage is higher than the aforementioned 1%, Binance is able to propose a proposal. However, the percentage relative to the total amount of UNI tokens is too low to immediately implement a proposal.

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However, it turns out to be a misunderstanding. Changpeng Zhao indicated that Binance is currently in talks to improve the process to prevent such misunderstandings from reoccurring in the future.

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