Although Binance will be able to propose governance votes with this move, it is not sufficient to satisfy the quorum requirement of 4%. Binance, a crypto exchange, is now the second largest entity in terms of voting power in the Uniswap DAO. On the on-chain list, it sits just behind Andreessen Horowitz Ventures (a16z).
Binance delegated 13.2 Million UNI tokens to the exchange on Oct. 18. This represents 5.9% of its voting power. The amount delegated is 1.3% of the total supply.
Binance will be able to propose governance votes as soon as it reaches 0.25%. However, it still falls below the 4% threshold needed to pass. Recent governance votes have reduced the threshold for voting.
Hayden Adams, CEO of Uniswap, tweeted that the change was a “very unusual situation” because the UNI technically belongs only to its users.
Earlier today, @binance added 13M UNI to its books. This is just 1.3% of the current delegated UNI, so it’s still quite dispersed in terms of governance voting power.
Adams claimed that Binance is not clear how it intends to engage in Uniswap decisions. He stated that Binance users would prefer to retain these government rights (similarly to what compound did with cUNI).
Adams also called Binance CEO Changpeng Zhao “CZ” Zhao, to discuss the company’s plans in the “spirit of transparency. CZ didn’t respond to Adams’s queries or those of other users at the time.
I would love to hear your thoughts on this @cz_binance.
Spencer Noon (@spencernoon). October 19, 2022
Uniswap announced on October 13 a $165million Series B funding round, led by Polychain Capital and additional investors including Andreessen Horowitz (Paradigm), Variant, SV Angel, Variant, Variant, Variant, Variant, and SV Angel. The company claims that the funding will be used by the company to expand its product offerings, improve user experience, and create new web apps, developer tools, and shift towards mobile. In the future, the company plans to launch projects using nonfungible tokens (NFTs).
Decentralized exchanges were prominent during the 2020 decentralized finance hype. In February 2021, Uniswap’s cumulative trade volume surpassed \$100 billion. Adams reports that the trading volume on the platform has risen to $1.2 trillion.
