Binance, the world's largest centralized cryptocurrency exchange, has launched a new community co-governance structure, enabling users to directly influence the listing and delisting of tokens.
What is Binance's Community Co-Governance?
The community-driven governance model allows Binance users to vote on whether they want certain tokens to be listed or delisted. This is Binance's strategic response to the ever-expanding number of tokens newly entering the market. By implementing 'Vote to List' and 'Vote to Delist' mechanisms, the community can now actively participate in crucial decisions regarding token inclusion and removal from the platform.
How Does the 'Vote to List' Mechanism Work?
The 'Vote to List' mechanism allows Binance users to vote for projects they believe should be listed on the platform. Projects are selected from the 'Alpha Observation Zone' and other vetted market candidates. Projects that receive sufficient votes undergo Binance’s due diligence process to ensure they meet the platform’s standards for quality and compliance. This draws interest from both established projects and new startups.
'Vote to Delist': Keeping the Platform Clean
The 'Vote to Delist' mechanism focuses on tokens that fail to meet community expectations and pose risks. Tokens in the 'Monitoring Zone' are subjected to voting. If they do not satisfy community standards, they may be delisted. This mechanism helps Binance maintain high-quality standards.
Binance's new co-governance structure offers a unique way to handle the influx of new tokens and involves the community in the decision-making process.
