Binance delegated 13.2 million UNI tokens, making it the second-largest vote-holder in the Uniswap DAO
October 20, 2022 4:10 AM
Binance will now be able to propose governance votes with this change, but it will still fall short of the required 4% quorum.
Based on the current delegation structure of the Uniswap DAO, the cryptocurrency exchange Binance is the second largest entity by voting power, behind the venture capital firm a16z.
On October 18th, Binance delegated 13.2 million of its own UNI (UNI) tokens, giving the exchange 5.9% of the voting power. The allocated amount of UNI is equivalent to 1.3% of the total available supply.
Binance has now crossed the 0.25% threshold needed to propose governance votes, but it is still short of the 4% quorum needed to pass votes. The voting threshold for proposing votes was lowered in a recent governance vote.
Hayden Adams, CEO of Uniswap, described the shift as a "very unique situation," writing about it on Twitter. "UNI technologically belongs to its users."
"Binance users would prob prefer to keep these gov rights (similar to what compound has done with cUNI)," Adams argued, adding that it's unclear how Binance plans to engage with Uniswap decisions.
CEO Changpeng "CZ" Zhao of Binance was urged by Adams to discuss the company's future plans "in the spirit of transparency." When contacted by Adams and other users, CZ had not yet responded to their questions.
Uniswap said on October 13 that it had raised $165 million in a Series B funding round led by Polychain Capital and including Andreessen Horowitz, Paradigm, Variant, and SV Angel, among others. The company says it will use the money to improve its current products and the user experience by making new web apps, developer tools, and a more mobile-friendly interface. In the near future, the company also plans to start working on projects that use nonfungible tokens (NFTs).
The 2020 craze for decentralized finance brought widespread attention to the decentralized exchange. For the first time ever, Uniswap's total trade volume in February 2021 was over $100 billion. According to Adams, the total amount of money traded on the platform has reached $1.2 trillion.