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Binance becomes Uniswap DAO's second largest vote holder

Binance can now lobby proposals to the government but still falls short of the 4 per cent quorum required

Shashank Bhardwaj
Published: Oct 20, 2022 05:40:14 PM IST

Binance becomes Uniswap DAO's second largest vote holderImage: Shutterstock

According to the on-chain list of delegates, crypto exchange Binance is currently the second-largest entity by voting power in the Uniswap DAO, trailing only the venture capital firm Andreessen Horowitz, or a16z.

On October 18, Binance distributed 13.2 million UNI tokens from its own books. These tokens account for 5.9 per cent of the exchange's voting power. The amount allotted is approximately 1.3 per cent of the entire supply of UNI.

The action will enable Binance to put forth governance proposals because it exceeds a 0.25 per cent threshold but falls short of the 4 per cent quorum needed to pass proposals. The requirement for proposing votes was recently lowered in a governance vote.

Hayden Adams, the CEO of Uniswap, tweeted, "Yesterday @binance delegated 13M UNI from its books, making it one of the largest UNI delegates (this is only 1.3% of current delegated UNI so governance voting power remains quite distributed). Very unique situation, as the UNI technically belongs to its users."

Adams said that "Binance users would prob prefer to keep these gov rights (similar to what compound has done with cUNI)" and that "it's unclear how Binance intends to engage with Uniswap decisions."

Changpeng "CZ" Zhao, CEO of Binance, was also contacted by Adams to discuss the company's plans "in the spirit of transparency." CZ did not answer Adams and other customers' questions.

Uniswap announced a $165 million Series B investment round on October 13 with additional previous investors Andreessen Horowitz, Paradigm, Variant, and SV Angel. Polychain Capital served as the round's lead investor.

According to the business, the cash will be used to develop new online applications, developer tools, and a move toward mobile to enhance user experience and broaden its current product offerings. Additionally, the business plans to start non-fungible tokens (NFTs) initiatives in the future.

During the decentralised finance craze of 2020, the decentralised exchange rose to prominence. In February 2021, Uniswap's total transaction volume reached $100 billion for the first time. According to Adams, the platform's total trade volume has reached $1.2 trillion.

On Binance, you may trade more than 600 cryptos and virtual tokens, including Bitcoin (BTC), Ether (ETH), Litecoin (LTC), Dogecoin (DOGE), and Binance Coin (BNB).

Shashank is founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist.

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