Cryptocurrency

Binance refutes claims it uses users tokens to vote

Zegex

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.

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.

โ€œBinance does not vote with usersโ€™ 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.โ€

Binance CEO Changpeng Zhao also said: Tweet .

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:

โ€œThe 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.

Posted In: Uniswap, Exchanges

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