Binance Is Now The Second-largest Entity In Uniswap Dao In Terms Of Voting Power

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Last Updated on October 19, 2022 by Bitfinsider

The cryptocurrency trading platform Binance has taken a step toward participating in the governance process of the decentralized cryptocurrency exchange Uniswap. As a result, Binance has become the second-largest entity in terms of voting power within the Uniswap Decentralized Autonomous Organization (DAO).

On October 18, Binance delegated 13.2 million UNI tokens to its own wallet. This means that the exchange is now able to use those tokens to vote on governance decisions within the Uniswap DAO that affect the protocol.

The number of tokens that have been delegated to Binance as a percentage of the total number of tokens that have been delegated indicates that Binance now possesses 5.9% of the voting power. It is currently in second place, behind the cryptocurrency venture capital firm a16z, which has 6.7% of the vote.

Hayden Adams, the founder of Uniswap, is concerned about this development because he believes it raises the possibility that Binance may use tokens that are owned by the users of the exchange to participate in governance for its own purposes.

On Twitter, Adams referred to this scenario as a “very unique situation,” explaining that technically speaking, the UNI belongs to the people who use it. He stated that in general, increased participation in governance is a positive thing; however, it is unclear how Binance plans to engage with the governance system.

1.3% of the total supply of UNI is represented by the amount that Binance has delegated to others. This is less than the quorum of 4% that is required for votes to be successful, but more than the threshold of 0.25% that is required for proposing governance votes. In recent days, in response to a vote regarding governance, the bar for proposing votes has been lowered.

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