Binance claims it doesn’t use consumers’ UNI for Uniswap voting

Binance has denied claims that it wants to utilise Uniswap (UNI) tokens owned by consumers in exchange for governance votes.

A spokeswoman for Binance agreed that the company transferred 4.6 million UNI tokens between wallets and activated its delegation, but said that the purpose for the transfer was misreported and the tokens were never meant to be used for voting.

The move presented Binance with the opportunity to become Uniswap’s second-largest voter on governance initiatives.

Currently, a Binance wallet has sufficient UNI to provide more than 13,2 million votes on DAO governance initiatives. Hayden Adams, the founder of Uniswap, noted that Binance is Uniswap’s second-largest delegate, giving it enormous influence if it ever votes on proposals. 

Binance controls 5.9% of Uniswap’s voting power. The venture capital company a16z has voted on 14 proposals and has a 6.7% stake. Consensys once held the second position with more than 7 million votes and continues to rank in the top 10 delegates by vote weight, holding 3.145% of Uniswap’s voting power. Adams described Binance’s influence as a rebel voter as “quite fascinating.”

Theoretically, every UNI owner is able to submit or vote on any proposal. Their impact is proportional to the number of UNI tokens they own.

UNI token holders might identify themselves as delegates or combine their votes with those of other UNI token holders by appointing a proxy to vote on their behalf. For example, A16z votes on behalf of 42 token holders.

Voting is one thing, but enacting a change is another else entirely. Some users have claimed that delegates may as well not vote on ideas because they may not be enacted. In fact, Uniswap’s engineers failed to execute a fee switch proposal that was approved in every round of voting.

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