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Binance became the second-largest entity by voting power in the Uniswap DAO and  after that, the CEO of the popular DEX, Hayden Adams, took it to Twitter describing the situation as “unique” while adding that “UNI technically belongs to its users.

He therefore accused Binance of using user funds to pile up governance votes.

What Hayden said about Binance

Hayden claimed that it was unclear how the Crypto Exchange intended to engage with the decisions of the DEX and argued that Binance users would “prefer to keep these gov rights,” citing Compound’s action with cUNI.

Binance distributed 13.2 million UNI tokens from its own books, currently retaining 5.9% of the platform’s voting power trailing behind venture capital giant a16z, which controls 6.7%.

According to cryptopotato, the allocated amount is nearly 1.3% of the total UNI supply, allowing Binance to present governance proposals as it exceeds the necessary 0.25% threshold.

Notwithstanding, it fell short of the 4% quorum required to pass votes.

Binance move makes it one of the largest centralized crypto exchange wrestling to gain control over the world’s most prominent decentralized crypto exchange by positioning itself as the second-most powerful voting member in the latter’s DAO.

However, Binance said Uniswap “Misunderstood”.

What Binance is Saying

Following the Uniswap claims, Binance disclosed the transfer of 4.6 million UNI between internal Binance wallets, which caused the UNI to be instantly and automatically delegated.

The exchange affirmed that it was not its intention and said that the team was in talks with Uniswap “to clarify the best path forward and prevent this misunderstanding from happening again.”

Binance CEO Changpeng Zhao “CZ” also noted that the exchange does not vote with user tokens and that the popular DEX had misunderstood the situation.

“UNI transferred between internal Binance wallets, causing the UNI to be automatically delegated. This is part of their protocol, not “we intended”. Binance don’t vote with user’s tokens. Uniswap misunderstood the situation. Tokens come to popular platforms.”

By Meekness Nnoka

Blockchain Analyst & Writer with top-notch Technological background. Enjoys reading and writing fascinating crypto contents. 4 years content creating experience.

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