A16z 15M bloc vote against Uniswap BNB Chain deployment raises decentralization concerns A16z 15M bloc vote against Uniswap BNB Chain deployment raises decentralization concerns
A16z said it does not believe Wormhole offers the most secure bridging option for Uniswap, citing its network vulnerabilities.
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Updated: Feb. 6, 2023 at 4:26 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Andreessen Horowitz (a16z) voted against the deployment of decentralized exchange (DEX) Uniswap (UNI) on the BNB Chain via Wormhole.
The crypto investment firm placed its 15 million UNI holdings against the proposal — making it the largest voting bloc among the 36 million votes cast at press time.
A16z defends decision
A16z said it does not believe Wormhole offers the most secure or decentralized bridging option for the DEX — citing the network vulnerability and breaches it suffered in 2022.
It added that the Uniswap DAO would be unable to control the bridge independently if Wormhole is selected as the provider — an essential factor to consider, according to the firm.
A16z also mentioned that an independent third party should formally assess all cross-chain bridge options.
A partner at the firm Eddie Lazzarin previously hinted that the firm would support LayerZero — one of its portfolio companies — as Uniswap’s bridge of deployment. Lazzarin said:
“To be totally unambiguous, we at a16z would have voted 15 million tokens toward LayerZero if we were technically able to. And we will be able in future Snapshot votes.”
The Wormhole bridge is backed by another crypto investment firm Jump Crypto — which was yet to vote as of press time. Voting will end on Feb. 10.
Community questions Uniswap’s decentralization
Meanwhile, a16z’s vote raised concerns about Uniswap’s decentralization among the crypto community.
The community was being lied to about UNI governance because a16z could control 41.5 million UNI through 11 wallets — representing more than 4% of the supply, Blockchain analytical firm Bubblemaps said. It added that 4% is the required quorum needed to pass any proposal.
The a16z-related wallets can collectively change the outcome of any governance vote, according to the firm.
Binance CEO Changpeng ‘CZ’ Zhao also asked a rhetorical question of if “Uniswap [is] controlled by a16z?” CZ added:
“On-chain voting just means the large whale(s) control the blockchain then. Just like shareholders.”
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Since its inception, the Uniswap Protocol (“Uniswap”) has served as a trustless and highly decentralized financial infrastructure.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
a16z
Andreessen Horowitz (known as “a16z”) is a venture capital firm in Silicon Valley specializing in investing in seed, start-ups, early, mid-stage, growth, and late stage.
Jump Crypto
Jump Crypto is a division of Jump Trading Group, a research-driven quantitative trading firm and one of the largest traders, by volume, across traditional asset classes.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.