It was only about a week ago that the majority of the Uniswap community decided to deploy to the BNB chain. The primary was successful for all advocates who promised a larger user base through the expansion of the DEX and at the same time wanted to promote new partnerships in the Binance ecosystem. But the final vote is currently going differently than expected – a16z, the venture capitalist Andreessen Horowitz, decided against the deploy and cast 15 million votes against the expansion with its considerable inventory of UNI tokens. So, will Uniswap not be on the BNB chain after all?
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a16z speaks out against Binance expansion
If you look at the voices against deploy, the heavy weight of a16z is striking. a16z is Andreessen Horowitz’s venture capital firm known for its disruptive strategy. The clear result in the first vote, in which a16z did not take part, is therefore passe for the time being. Because with a gigantic number of votes – 15 million to date – a16z opposed the Binance extension.
The great influence of institutional investors on the further development of the DEX results from the governance model, which grants votes in voting depending on the UNI token. Companies with large capital investments and a large number of UNIs can thus exert significantly more influence.
Now, of course, the question of the motives arises. In principle, the expansion to the BNB chain for Uniswap naturally promises the potential to expand market power, expand the ecosystem and ultimately generate greater value for stakeholders.
Although one can only speculate about the motives, the first Twitter users accuse a16z of distorting competition by not wanting to jeopardize the success of a competitor, LayerZero Labs, in which Andreessen Horowitz has a significant stake.
Voting runs until February 10th
Nevertheless, it remains exciting. To date, 71.3% of participants with 37.74 million votes were in favor of deploying Uniswap V3 on BNB Chain, while 28.69% were against. Since February 3rd, the UNI holders have had one week to contribute their governance part to the further development of Uniswap. Other crypto whales are apparently still hesitating with their decision and could again exert a strong influence on the vote.
Should the vote be in favor of extending to the BNB Chain, 0xPlasma Labs would like to speed up the effort and push Uniswap V3 onto the BNB Chain with a wormhole bridge infrastructure to enable fast cross-chain transactions.
Central influence on decentralized crypto exchange
The voting, which shows clear differences from the area code under the strong influence of a16z, also raises question marks with regard to decentralization. Because there is no doubt that Uniswap is a decentralized crypto exchange through which investors can trade by using smart contracts to automatically match and then execute the sell and buy orders of the users. But central actors have a central influence on the further development of the leading Ethereum-DEX, if you take into account the 15 million votes of a16z, which account for over 90% of the negative share in the vote.
That is why Uniswap V3 wants to migrate to BNB Chain
There are various reasons for expanding the DEX offering to the BNB chain, which those responsible list in the proposal.
On the one hand you want to use the large user base of the BNB chain. Because behind the BNB Chain is Binance, the largest centralized crypto exchange in the world. Fast transaction times and low fees could be accomplished. On the other hand, with Binance you would have a strong company in the background, which is even expanding or consolidating its market power in the current bear market. New partnerships would be possible to expand the Uniswap ecosystem.
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Author: Daniel Robrecht
After studying law and management, Daniel decided to work as a freelance author and has been writing qualitative publications on various specialist topics for around 10 years now. As an investor, he gained years of experience with stocks & cryptocurrencies. In addition to a long-term investment approach, Daniel is also passionate about short-term markets. Through targeted further training at international universities, he has acquired extensive knowledge about the capital markets, stocks, cryptocurrencies and decentralized finance. Daniel’s primary focus is on general market trends, exciting stocks, business news and the digital currency market. In his private life, too, there is never a day without the financial markets. As an author, Daniel writes for leading German-language publications in this field. Daniel publishes for Finanzen.net, among others, Business2Communityand FXStreet.de. Daniel on LinkedIn.
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