{"id":352603,"date":"2022-10-21T06:45:35","date_gmt":"2022-10-21T10:45:35","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=352603"},"modified":"2022-10-21T06:45:35","modified_gmt":"2022-10-21T10:45:35","slug":"changpeng-zhao-says-internal-transfers-caused-the-delegation-of-uni-tokens","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/changpeng-zhao-says-internal-transfers-caused-the-delegation-of-uni-tokens","title":{"rendered":"Changpeng Zhao says internal transfers caused the delegation of UNI tokens"},"content":{"rendered":"<p>The Binance CEO, Changpeng Zhao (CZ), has tweeted that the UNI tokens delegated by the exchange were a &#8220;misunderstood situation.&#8221; Zhao responded to queries about 13.2 million UNI tokens delegated on October 18, which led to Binance being the second-largest party by voting power on the Uniswap decentralized autonomous organization (DAO).<\/p>\n<h2>Binance CEO says UNI tokens delegation was a &#8220;misunderstood situation&#8221;<\/h2>\n<p>CZ said that transferring UNI tokens between internal Binance wallets had resulted in automatic delegation. He also denied that the exchange was using users&#8217; tokens to influence their voting power on the Uniswap DAO.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">UNI transferred between internal Binance wallets, causing the UNI to be automatically delegated. This is part of their protocol, not &quot;we intended&quot;. Binance don&#39;t vote with user\u2019s tokens. Uniswap misunderstood the situation. Tokens come to popular platforms. <a href=\"https:\/\/twitter.com\/hashtag\/Binance?src=hash&amp;ref_src=twsrc%5Etfw\">#Binance<\/a> <a href=\"https:\/\/t.co\/KYPqFx5GrW\">https:\/\/t.co\/KYPqFx5GrW<\/a><\/p>\n<p>&mdash; CZ ? Binance (@cz_binance) <a href=\"https:\/\/twitter.com\/cz_binance\/status\/1582975267907153920?ref_src=twsrc%5Etfw\">October 20, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&#8220;UNI transferred between internal Binance wallets, causing the UNI to be automatically delegated. This is part of their protocol, not &#8220;we intended.&#8221; Binance don&#8217;t vote with users&#8217; tokens. Uniswap misunderstood the situation,&#8221; CZ explained.<\/p>\n<p>Binance later issued a statement saying it did not vote using users&#8217; tokens, saying there was a &#8220;misunderstanding&#8221; of the situation that arose during the transfer of a large number of UNI between wallets. The exchange also added that it discussed how it would improve the process to ensure such misunderstanding didn&#8217;t happen in the future.<\/p>\n<p>The clarification given by Binance and its CEO came after Hayden Adams, the CEO of Uniswap, <a href=\"https:\/\/twitter.com\/haydenzadams\/status\/1582714218323017729\">said<\/a> that it was not clear how Binance wanted to acquire voting power and demanded an explanation of the delegated UNI tokens.<\/p>\n<p>Adams said that the delegation of the UNI tokens made Binance one of the largest UNI delegates, adding that it was a &#8220;very unique situation&#8221; because the delegated UNI tokens belonged to Binance users.<\/p>\n<p>The on-chain list of delegates showed that the tokens delegated during the transaction represented 5.9% of the voting power within the governance forum, which positioned Binance second after the Andreesen Horowitz venture capital firm.<\/p>\n<p>The amount delegated by Binance, around 4.9 million UNI tokens, represented 1.3% of the total supply of UNI. With this percentage, Binance had the power to propose governance votes because the threshold is set at 0.25%. However, the exchange would not be able to pass any votes on its own because there is a 4% quorum requirement.<\/p>\n<h2>The Uniswap DEX<\/h2>\n<p>In early October, Uniswap raised $165 million in a Series B funding round. The funding round was led by Polychain Capital and attracted other investors&#8217; participation. The company is planning to expand its services into non-fungible tokens in the future.<\/p>\n<p>Uniswap is one of the largest decentralized exchanges. The popularity of the exchange skyrocketed during the decentralized finance (DeFi) hype of 2020. The total trading volumes of the exchange surpassed $100 billion for the first time earlier this year. The DEX has been the go-to option for new cryptos in the market.<\/p>\n<h3>Related<\/h3>\n<ul>\n<li><a href=\"https:\/\/insidebitcoins.com\/cryptocurrency-exchanges\/binance-review\">Binance Review \u2013 Fees, Features, Safety, Pros &amp; Cons 2022<\/a><\/li>\n<li><a href=\"https:\/\/insidebitcoins.com\/news\/binance-will-provide-the-cryptocurrency-mining-industry-with-loans-worth-500-million\">Binance will provide the cryptocurrency mining industry with loans worth $500 million<\/a><\/li>\n<li><a href=\"https:\/\/insidebitcoins.com\/buy-cryptocurrency\/best-coins-to-buy-uniswap\">7 Best Coins to Buy on Uniswap in 2022<\/a><\/li>\n<\/ul>\n\n            \n","protected":false},"excerpt":{"rendered":"<div class=\"fin-excerpt\">The Binance CEO, Changpeng Zhao (CZ), has tweeted that the UNI tokens delegated by the exchange were a &#8220;misunderstood situation.&#8221; Zhao responded to queries about <a class=\"read-more-link\" href=\"https:\/\/insidebitcoins.com\/news\/changpeng-zhao-says-internal-transfers-caused-the-delegation-of-uni-tokens\" title=\"Changpeng Zhao says internal transfers caused the delegation of UNI tokens\">[&#8230;]<\/a><\/div>","protected":false},"author":1717,"featured_media":352612,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[7596],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.8 (Yoast SEO v21.8) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Changpeng Zhao says internal transfers caused the delegation of UNI tokens<\/title>\n<meta name=\"description\" content=\"The CEO of Binance has refuted claims that Binance delegated users&#039; UNI tokens. Zhao said that the situation was &quot;misunderstood&quot;.\" \/>\n<meta name=\"robots\" content=\"max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/insidebitcoins.com\/wp-json\/wp\/v2\/posts\/352603\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Changpeng Zhao says internal transfers caused the delegation of UNI tokens\" \/>\n<meta property=\"og:description\" content=\"The CEO of Binance has refuted claims that Binance delegated users&#039; UNI tokens. 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