UNI tokens delegation was a "misunderstood situation" according to Binance's CZ

The millions oF UNI tokens delegated by Binance were a "misunderstood situation", said Binance CEO Changpeng “CZ” Zhao connected a Twitter's post, successful effect to questions astir 13.2 cardinal UNI tokens delegated connected Oct. 18 that made Binance the second-largest entity by voting powerfulness successful the Uniswap DAO.

According to CZ, a UNI transportation betwixt interior wallets caused the automatic delegation, denying allegations astir the crypto speech utilizing user's tokens to vote.

UNI transferred betwixt interior Binance wallets, causing the UNI to beryllium automatically delegated. This is portion of their protocol, not "we intended". Binance don't ballot with user’s tokens. Uniswap misunderstood the situation. Tokens travel to fashionable platforms. #Binance https://t.co/KYPqFx5GrW

— CZ Binance (@cz_binance) October 20, 2022

In a connection to Cointelegraph, Binance stated:

“Binance doesn’t ballot with user’s tokens. In this case, determination has been a misunderstanding of what has happened during the transportation of a ample equilibrium of UNI (around 4.6M) betwixt wallets. We’re presently successful discussions to amended the process to forestall immoderate further misunderstandings happening again.”

On October 19, Hayden Adams, Uniswap’s CEO stated that it was unclear however Binance intended to prosecute with Uniswap decisions and demanded explanations astir the case, which helium classified arsenic a "very unsocial situation, arsenic the UNI technically belongs to its users."

— hayden.eth (@haydenzadams) October 19, 2022

Tokens delegated successful the transaction represented 5.9% of the voting powerfulness successful the governance forum, positioning Binance's voting powerfulness down the task steadfast Andreessen Horowitz, oregon a16z, according to the on-chain database of delegates. 

The magnitude delegated represented 1.3% of the full proviso of UNI. A percent that allows Binance to suggest governance votes, arsenic the threshold is settled astatine 0.25%. The speech won't beryllium capable to walk votes connected its ain nevertheless owed to a 4% quorum requirement.

Earlier this month, Uniswap disclosed a $165 cardinal Series B backing round led by Polychain Capital with further existing investors to grow its existing merchandise offerings and amended idiosyncratic experience. The institution besides intends to motorboat nonfungible tokens (NFTs) projects successful the future.

The decentralized speech became salient during the DeFi hype successful 2020. The cumulative commercialized measurement of Uniswap surpassed $100 cardinal for the archetypal clip successful February 2021.