Cryptocurrency exchange Binance is now the second-highest voting entity in Uniswap DAO, just behind venture capital firm Andreessen Horowitz, or a16z, according to the list of on-chain delegates.
On Oct. 18, Binance delegated 13.2 million UNI tokens from its own funds, which represents 5.9% of the voting power, a percentage of tokens delegated to the exchange. Compared to UNI’s total offer, the amount delegated represents 1.3%.
The move will allow Binance to propose governance votes, as it exceeds the 0.25% threshold, but remains below the 4% quorum requirement for passing votes. A recent governance vote lowered the threshold for proposing votes.
On Twitter, the CEO of Uniswap, Hayden Adams called the change a “very unique situation, as UNI technically belongs to its 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
Adams also stated that it is unclear how Binance intends to engage with Uniswap’s decisions, stating that “Binance users would probably prefer to keep these governance rights (similar to what Compound has done with cUNI).”
Adams also asked Binance CEO Changpeng Zhao, or “CZ,” to speak about the firm’s plans. “for the sake of transparency”. CZ did not respond to questions from Adams or other users at the time of publication of this story.
Would love to learn how y’all are thinking about this @cz_binance?
— Spencer Noon (@spencernoon) October 19, 2022
Uniswap announced on Oct. 13 a $165 million Series B funding round led by Polychain Capital with other existing investors including Andreessen Horowitz, Paradigm, Variant, and SV Angel. According to the company, the funding will be used to expand its current product offering and improve the user experience through new web applications, developer tools and a shift to mobile. The company also intends to launch non-fungible token (NFT) projects in the future.
The decentralized exchange rose to prominence during the decentralized finance boom in 2020. Uniswap’s cumulative trading volume first exceeded $100 billion in February 2021. The platform’s cumulative trading volume has grown to $1.2 trillions, according to its founder Hayden Adams.
Cointelegraph reached out to Binance but received no response at press time.
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