Binance Becomes Second-largest Entity Of Uniswap
Binance, the cryptocurrency exchange, has made a stride toward participating in the governance process of the decentralized exchange Uniswap, becoming the second-largest organization by voting power in the Uniswap DAO.
Binance allocated 13.2 million UNI tokens to its own wallet on October 18, which means the exchange may now use those tokens to vote on governance choices impacting the protocol within the Uniswap DAO.
Binance currently controls 5.9% of the voting power, measured as a proportion of tokens allocated to the exchange out of the total tokens assigned. It trails crypto VC company a16z, which received 6.7% of the vote.
This worries Uniswap creator Hayden Adams, who is concerned that Binance may utilize tokens owned by exchange customers to participate in governance for its own purposes. Adams said on Twitter:
Binance’s delegation comprises 1.3% of the overall supply of UNI. This is greater than the 0.25% threshold for proposing governance votes but less than the 4% necessary for votes to succeed. Following a governance vote, the threshold for proposing votes was recently decreased.
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