Conflicts of interest within Uniswap (UNI)? The bill to deploy Uniswap (UNI) V3 on the BNB Chain had been mostly supported by the community. However, the final vote saw the participation of the a16z fund which used its 15 million UNI tokens to vote “against” this proposal.
a16z votes “against”
While a proposal to deploy the decentralized finance protocol on the BNB Chain was mostly accepted (80%) by the community during a first temperature taking vote, the final vote seems to take a completely different direction.
Concretely, 0xPlasmaLabs opened a vote on February 3 to the governance of Uniswap in order to deploy V3 of the protocol on the Binance blockchain via Wormhole Bridge. While he did not speak the first time, the venture capital fund a16z has this time decided to participate.
Against all expectations, a16z has used his huge wallet of 15 million UNI tokens to vote “against” the proposal. At the time of writing these lines, the balance therefore leans at 66% for a refusal to migrate to the BNB Chain.
For information, the vote is far from over since it will close on February 10th.
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Conflicts of interest at Uniswap?
Admittedly, this may sound intriguing. Why would the a16z fund vote against a proposal that seems to be validated by the majority of the Uniswap community? Quite simply for reasons of conflict of interest.
This proposal was to accept the deployment of the decentralized exchange on the BNB Chain across the Wormhole Bridge. The Jump Crypto fund voted in favor of this decision, which can be understood: he invested in Wormhole.
On the other hand, a16z has chosen to support a competing solution called LayerZero. In other words, the fund intends to refuse this proposal so that the deployment of Uniswap on the BNB Chain is done through a bridge in which it has invested. Moreover, Eddie Lazzarin, partner at a16z, made no secret of it on the forum dedicated to the Uniswap community:
“To be absolutely clear, at a16z we would have voted 15 million UNI tokens in favor of LayerZero if we had been technically able. And we will be able to do so in the next votes. »
While part of the debate is about security – Wormhole having been the victim of several multi-hundred million dollar hacks – the reality is that this governance vote proposal is a battlefield between investment funds and venture capital companies.
👉 Related – Attacker Steals $320 Million in wETH from DeFi Wormhole Platform
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Source: Proposal
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Journalist for Cryptoast, I strive to dissect every detail of the exciting world of cryptocurrencies and make it accessible and understandable to as many people as possible.
Lilian Aliaga
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