CZ: Binance Don’t Vote With User’s Tokens

October 20, 2022 - Around 2 mins mins to read

Binance CEO Changpeng Zhao has explained that the exchange did not delegate a significant number of UNI tokens to itself on purpose, stating it was a bug in the Uniswap mechanism. This has alleviated fears that the exchange was moving towards the Uniswap exchange’s governance mechanism.

CZ: Binance Don't Vote With User’s Tokens

Hayden Adams, the creator of Uniswap, said yesterday on Twitter that the exchange has assigned 13 million UNI ($83.5 million) to itself. This placed it second only to VC company a16z in terms of voting power in the Uniswap DAO, the decentralized exchange’s governance forum.

Changpeng Zhao, the CEO of the Binance exchange, stated today that the company was just moving tokens between wallets, but that owing to the way Uniswap tokens function, the tokens were automatically delegated.

UNI transferred between internal Binance wallets, causing the UNI to be automatically delegated. This is part of their protocol, not "we intended". Binance don't vote with user’s tokens. Uniswap misunderstood the situation. Tokens come to popular platforms. #Binance https://t.co/KYPqFx5GrW
— CZ ???? BNB (@cz_binance) October 20, 2022

This occurs when Uniswap tokens are given to an address that is already delegating tokens, according to Adams. He stated:

“So the transfers just increased the amount delegated – there was already a Binance address that had delegated a smaller amount.”

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