Binance, the world's largest centralized cryptocurrency exchange, has introduced a new co-governance structure, allowing users to influence token listing and delisting.
What is Binance's Community Co-Governance?
The community governance model allows Binance users to vote on which tokens should be listed or delisted. The 'Vote to List' and 'Vote to Delist' mechanisms provide a platform for community involvement in decision-making.
The 'Vote to List' Mechanism
The 'Vote to List' mechanism enables users to vote for projects to be listed. With a minimum of 0.01 BNB, users can participate. Only projects from the Alpha Observation Zone and vetted candidates enter the voting pool. Projects that receive enough votes undergo Binance's due diligence process. In addition, projects can self-nominate for listing.
The 'Vote to Delist' Mechanism
The 'Vote to Delist' mechanism improves listing quality by protecting against risky projects. Tokens showing poor performance or unmet promises can enter the Monitoring Zone for potential delisting. This includes tokens with inactive communities, lack of updates, regulatory issues, or high inflation.
Binance's new co-governance structure presents a more transparent and inclusive approach, enabling users to take an active role in shaping listings and maintaining token quality on the platform.
