Binance has responded to allegations of misuse of user tokens as a misunderstanding of what happened.
Uniswap founder Hayden Adams pointed out that Binance has delegated 13 million UNI tokens. This technically belongs to the user, who has more voting power on the platform.
yesterday @Binance It has delegated 13 million UNIs from its books, making it one of the largest UNI representatives (this is only 1.3% of UNIs currently delegated, so governance voting remains fairly decentralized). ).
UNI is a very special situation as it technically belongs to that user. pic.twitter.com/bwsVb1IwKR
— hayden.eth 🦄 (@haydenzadams) October 19, 2022
Adams added that although more governance participation is a good thing, it is unclear what Binance plans to do, and users likely prefer to retain their governance rights.
However, a Binance spokesperson told CryptoSlate that the exchange does not vote on users’ tokens and transfers between wallets are misinterpreted as token delegation.
“Binance does not vote with users’ tokens. In this case, there was a misunderstanding as to what happened when transferring a large balance of UNI (around 4.6M) between wallets. We are having discussions to improve the process so that it does not happen.”
Binance CEO Changpeng Zhao also said: Tweet .
UNIs are transferred between Binance’s internal wallets and UNIs are automatically delegated. This is part of their protocol, not “we intended”. Binance does not vote with users’ tokens. Uniswap misunderstood the situation. Tokens appear on popular platforms. #binance https://t.co/KYPqFx5GrW
— CZ🔶 Binance (@cz_binance) October 20, 2022
Adams responded that while Binance may not have voted on the proposal, sending UNI to an already delegated address will automatically delegate the token.Adams Said:
“The remittance increased the amount delegated. There was already a Binance address that delegated a smaller amount. It would be useful to hear how you feel about participating in CEX governance on this. I think.”
Meanwhile, Binance is currently one of the most powerful voters on Uniswap, with 5.9% voting power. Only venture capital firm Andreessen Horowitz has a 6.7% voting stake.