Binance, the world's largest centralized cryptocurrency exchange, is rolling out a new co-governance structure allowing users to influence the listing and delisting of tokens.
What is Binance's Community Co-Governance?
The community-driven governance model enables Binance users to vote on token listings and delistings. The initiative introduces 'Vote to List' and 'Vote to Delist', enabling community participation in critical token-related decisions. This strategy seeks to balance innovation with responsibility by involving the community in token vetting processes.
How Does the 'Vote to List' Mechanism Work?
The 'Vote to List' mechanism allows Binance users to vote for projects they want on the platform. To participate, users must hold at least 0.01 BNB. Projects from the Alpha Observation Zone and other vetted candidates are included in the voting pool. Those receiving enough votes undergo a thorough due diligence process to meet Binance's standards.
'Vote to Delist': Keeping the Platform Clean
The 'Vote to Delist' mechanism empowers users to vote tokens that show signs of underperformance or risk out of the platform. It includes tokens with inactive communities, lack of updates, regulatory non-compliance, or excessive inflation.
With these new mechanisms, Binance provides users more influence over the token listing process, promoting the improvement of project quality on the platform.
