Binance Now Ranked as the Second Largest Voting Power in Uniswap DAO

In a move that has become quite worrisome to Hayden Adams, the founder of the Uniswap decentralized exchange, Binance exchange has delegated as much as 13 million UNI tokens to the Uniswap DAO.


This token automatically springboards Binance as the entity with the second-largest voting power after mega Venture Capital firm Andreessen Horowitz (a16z). By the numbers, Binance now holds a 5.9% voting power as against the 6.7% that is commanded by a16z.


Taking to Twitter, Hayden said the UNI token belongs to Binance users, and that he remains unsure of how Binance intends to engage with the Uniswap DAO moving forward.


“..Binance delegated 13M UNI from its books, making it one of the largest UNI delegates (this is only 1.3% of current delegated UNI so governance voting power remains quite distributed). Very unique situation, as the UNI technically belongs to its users,” He said in a tweet shared earlier today.


DAOs are an automated and decentralized governance engine and they help to decide the directions through which the Uniswap protocol will trend per time. 


While Hayden acknowledges that the vote distribution is still well optimized and as such, the Binance newly delegated tokens will not affect its integrity, he still called out to the bigger exchange’s founder and CEO, Changpeng Zhao to come to talk or give insights on the trading platform’s plans.


“Normally more gov participation = good, however it’s unclear how binance intends to engage. Binance users would prob prefer to keep these gov rights (similar to what compound has done with cUNI). In the spirit of transparency would love to hear from @cz_binance on their plans.”

DAOs have been proposed as a major alternative, a blockchain-powered corporate tool for running an organization. While some DAOs, like the Uniswap DAO, have functioned perfectly well over time, others, such as the Panda DAO have run into troubles with proposals for the dissolution of the DAO.

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DAO treasuries surged 40X in 2021: DeepDAO

The total combined value of treasuries, or assets under management (AUM) for the use of decentralized autonomous organizations, increased by around 40 times between January and September of 2021.

According to data from DAO stats platform DeepDAO, the total AUM for DAO treasuries listed on the platform increased from around $380 million in January to a peak of roughly $16 billion in mid-September.

As of mid-December, the total AUM has decreased by 28.1% since the high water mark to sit at $11.5 billion, dropping a hefty $3.6 billion over the past 30 days alone.

User participation in DAOs has surged as well throughout 2021, with the total DAO members and token hodlers tallying in at around 1.3 million in December, marking a 130x increase since the start of the year.

DeepDAO ranks the DAOs for decentralized exchange (DEX) Uniswap, the general purpose BitDAO, and decentralized finance staking platform Lido Finance as the top three in terms of total treasury value at $2.9 billion, $2.4 billion and $602 million apiece.

The Uniswap DAO has roughly 275,000 members that can vote on the project’s roadmap and maintain governance over the DEX. Uniswap has been the dominant DEX throughout 2021, pulling in more trading volume than all of the other DEXs combined according to Dune Analytics data.

The Lido DAO governs its platform, and users are granted governance rights via the Ethereum-based LDO token. Lido Finance has also exploded in 2021, with the platform’s total value locked increasing from $12.5 million at the start of January to a whopping $11.68 billion in late December. According to data from DeFiLlama, Lido Finance currently sits as the sixth-highest ranked DeFi platform in terms of TVL.

Related: DAO aims to raise $5M to resurrect Blockbuster Video

BitDAO is focused on supporting decentralized projects across any blockchain that are voted on by BIT token holders.

The DAO has around 10,000 members and focuses on proposals relating to direct partnerships or swaps with projects, and expansion opportunities such as the launching of autonomous artist guilds, farming cooperatives and ecosystem funds.