Binance has responded to the allegations about misusing its person tokens, saying it was a misunderstanding of what occurred.
Uniswap founder Hayden Adams identified that Binance delegated 13 million UNI tokens which technically belonged to its customers, growing its voting energy on the platform.
Yesterday @binance delegated 13M UNI from its books, making it one of many largest UNI delegates (that is only one.3% of present delegated UNI so governance voting energy stays fairly distributed)
Very distinctive scenario, because the UNI technically belongs to its customers. pic.twitter.com/bwsVb1IwKR
— hayden.eth 🦄 (@haydenzadams) October 19, 2022
Adams added that whereas extra governance participation is nice, it’s unclear what Binance plans to do and that its customers could seemingly desire to maintain their governance rights.
Nonetheless, a Binance spokesperson informed CryptoSlate that the alternate doesn’t vote with its customers’ tokens and {that a} switch between wallets had been misunderstood as a delegation of tokens.
“Binance doesn’t vote with person’s tokens. On this case, there was a misunderstanding of what has occurred throughout the switch of a big stability of UNI (round 4.6M) between wallets. We’re at the moment in discussions to enhance the method to forestall additional misunderstandings from taking place once more.”
Binance CEO Changpeng Zhao additionally stated in a tweet on Oct. 20 that the alternate pockets has by no means voted on a Uniswap governance proposal.
UNI transferred between inner Binance wallets, inflicting the UNI to be mechanically delegated. That is a part of their protocol, not “we meant”. Binance do not vote with person’s tokens. Uniswap misunderstood the scenario. Tokens come to standard platforms. #Binance https://t.co/KYPqFx5GrW
— CZ 🔶 Binance (@cz_binance) October 20, 2022
Adams responded that whereas Binance may not be voting on proposals, sending UNI to an tackle already delegating mechanically delegates the tokens. Adams stated:
“The transfers simply elevated the quantity delegated – there was already a binance tackle that had delegated a smaller quantity. Bc of this, I feel it’s helpful to listen to how you concentrate on cex governance participation.”
In the meantime, Binance is now some of the outstanding voters on Uniswap, because it has 5.9% of the voting energy. Solely enterprise capital agency Andreessen Horowitz has extra voting energy, with 6.7%.
