Binance Empowers Users To Vote On Token Listings, Delistings

Binance has introduced a co-governance system, allowing users to vote on token listings and delistings based on project activity and compliance.

Binance, the world’s largest centralized cryptocurrency exchange, has introduced a new community co-governance system.

This system allows users to participate in voting on which tokens should be listed or removed from the platform.

According to Binance, the exchange will select certain projects for the community to vote on. Tokens that receive the highest number of votes will be listed, but only after Binance conducts its due diligence on them.

For projects that fail to provide regular updates, lack necessary token information, engage in unethical practices, or have inactive development teams and communities, Binance will place them in a “monitoring zone.” Once a project enters this zone, community members can then vote on whether it should be delisted from the platform.

This decision comes as the number of new cryptocurrency tokens continues to grow rapidly, reaching tens of millions. The increasing volume of digital assets has raised concerns about the ability of major exchanges to effectively manage listings.

CoinMarketCap reported that as of February 8, fewer than 11 million cryptocurrencies were listed. However, this number has now surged to 12.4 million, highlighting the fast-paced expansion of the market.

Some analysts argue that the rapid increase in token listings could dilute crypto prices and even hinder the emergence of an “altcoin season” during this market cycle. With so many tokens competing for limited investor attention and capital, market dynamics may be shifting.

Coinbase CEO Brian Armstrong also addressed the issue, stating in a January 24 post on X:
“We need to rethink our listing process at Coinbase given there are [roughly] 1 million tokens a week being created now, and growing — high-quality problem to have — but evaluating each one by one is no longer feasible.”

He further emphasized the regulatory challenges of approving each token individually, saying:
“Regulators need to understand that applying for approval for each one is totally infeasible at this point as well.”

To address these challenges, Armstrong proposed that Coinbase adopt an “allow-list” and “block-list” system. This new approach would involve community reviews and on-chain data analysis to help determine which projects should be listed on the exchange.

With both Binance and Coinbase exploring alternative listing strategies, the crypto industry is witnessing a shift toward more community-driven and automated decision-making processes.
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