Binance introduces “Vote to List” and “Vote to Delist” Mechanisms to introduce community governance in token listings. The exchange has occasionally hosted listing votes before, but they are exceptionally rare.
Binance is also introducing pools for potential listings and delistings, so users cannot put any token up for a vote at their own discretion. However, the exchange has several mechanisms to encourage user participation and feedback.
Binance to Host Token Listing Votes
Binance, the world’s largest crypto exchange, can consistently impact token prices with its listing announcements. Whenever the exchange announces that it will list one, its asset spikes, yet this is a very opaque process.
After a period of “trialing and evaluating,” however, Binance is increasing transparency by letting regular community votes decide token listing:
“Binance is enhancing its listing mechanism and introducing its new Community Co-Governance Mechanism for Listings. The ‘Vote to List’ and ‘Vote to Delist’ mechanisms will enable greater community participation and give users a stronger voice in the listing process,” the exchange claimed on social media.
The exchange does not establish full democracy with these proceedings. Binance will select projects in its “Alpha Observation Zone” to enter the voting pool, and the community can decide whether a listing will happen.
Additionally, the token project in question will need to pass Binance’s due diligence inspections. Delisting votes, too, will only apply to coins in a specific pool.
In the past, Binance has occasionally allowed community votes to decide token listings, but it’s a very rare occurrence. Last month, the exchange allowed a vote over Pi Network, and it passed overwhelmingly.
However, the actual listing still has yet to materialize. Moving forward, this process could be a key part of Binance’s due diligence process.
Ultimately, however, any increase in transparency will be a net positive. Lately, Binance has been under fire for controversial listings after it listed a few young meme coins.
Critics accused the firm of facilitating pump-and-dump scams, and the leadership took the issue very seriously. With listing votes, Binance can help build its community’s power.
Still, Binance left itself some leeway to act independently of these votes. However, these actions can also fuel community participation.
For example, yesterday, it planned to list RedStone’s RED token, but the team suddenly changed the terms of its airdrop. Binance suspended the listing, and the community’s outrage prompted RedStone to reverse its decision.
Overall, it’s a positive step for Binance. A community-driven approach will likely increase transparency for the exchange and help maintain its credibility.
