Uniswap founder a bit concerned by the sudden move.
Crypto Exchange giant Binance has made a move that creates voting power for the exchange on another decentralized exchange. The Company is now the second-largest entity by voting power on the Uniswap DAO.
Holders of UNI tokens have the ability to vote on processes and initiatives within the platform via the Uniswap DAO. The more tokens you have the more voting power you have, this has been the way DAOs have worked for a while now though there are some that are trying to change this.
On October 18, 2022, Binance delegated 13.2 million of its UNI tokens to its won wallet effectively giving the exchange power to vote on governance decisions affecting Uniswap DAO protocols. Binance currently sits behind a16z which has 6.7% of the power to vote. The current amount Binance is holding allows for 5.9% of the power on the platform.
Hayden Adams the founder of Uniswap stated he feels a bit uneasy at the recent turn of events. The founder fears that Binance may use this power for its own personal gain. In a statement Adams made the following comment:
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)— hayden.eth 🦄 (@haydenzadams) October 19, 2022
Very unique situation, as the UNI technically belongs to its users. pic.twitter.com/bwsVb1IwKR
He continued his sentiments via his Twitter by making the next tweet
Normally more gov participation = good, however it’s unclear how binance intends to engage— hayden.eth 🦄 (@haydenzadams) October 19, 2022
Binance users would prob prefer to keep these gov rights (similar to what compound has done with cUNI)
In the spirit of transparency would love to hear from @cz_binance on their plans
After Hayden made his comments the team at Binance decided to let everyone know there were no ill intentions and that discussions were being had with UniSwap to make sure there were no misunderstandings.
We’re currently in discussions with the @Uniswap team to clarify the best path forward and prevent this misunderstanding from happening again.— Binance (@binance) October 19, 2022
You can see here that this wallet has never voted: https://t.co/2D9A6m5fCN