DeFi

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

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

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 2

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.

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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Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.