Block A16z 15M Vote Against Uniswap BNB Network Deployment, Raising Decentralization Concerns
Block A16z 15M Vote Against Uniswap BNB Network Deployment, Raising Decentralization Concerns
A16z stated that it does not believe that Wormhole offers the most secure bridge option for Uniswap, citing vulnerabilities in its network.
Cover/illustration via Cryptooshala
Andreessen Horowitz (a16z) voted against the deployment of Uniswap (UNI) decentralized exchange (DEX) on the BNB chain through a wormhole.
Cryptocurrency investment firm placed its 15 million UNI holdings against the proposal, making it the largest voting block of the 36 million votes cast as of press time.
A16z defend solution
A16z said he does not believe that Wormhole offers the most secure or decentralized bridge option for the DEX, citing network vulnerabilities and breaches that occurred in 2022.
He added that Uniswap DAO would not be able to manage the bridge on its own if Wormhole was chosen as the provider, an important factor to consider, according to the firm.
A16z also mentioned that an independent third party should formally evaluate all interchain bridge options.
Firm partner Eddie Lazzarin previously hinted that the firm would support LayerZero — one of its portfolio companies — as a Uniswap deployment bridge. Lazarin said:
“To be completely unambiguous, we at a16z would vote for LayerZero 15 million tokens if we had the technical ability. And we’ll be able to do that in the future with the Snapshot vote.”
The Wormhole Bridge is backed by another crypto investment firm, Jump Crypto, which has not yet voted at the time of publication. Voting ends February 10th.
Community Questions About Uniswap Decentralization
Meanwhile, a16z’s vote raised concerns in the crypto community about Uniswap’s decentralization.
The community was lied to about UNI governance because a16z was able to control 41.5 million UNI through 11 wallets, which is over 4% of the supply, blockchain analytics company Bubblemaps. said. He added that 4% is the required quorum required for any proposal to be accepted.
Wallets linked to a16z could collectively change the outcome of any governance vote, the firm says.
Binance CEO Changpeng “CZ” Zhao also asked rhetorical question if “Uniswap [is] controlled by a16z? Czech added:
“On-chain voting simply means that the big whales control the blockchain. So are the shareholders.”
Credit : cryptoslate.com
