Binance DEX Promotes Token Issuance on Its Native Chain; Raises Questions Around Centralization

Several projects are expressing their plans to get listed on Binance DEX and move to Binance Chain.

Binance DEX is not only drawing in tokens for trading, but also inviting projects to migrate from their previous blockchain, which is mostly Ethereum (ETH).

https://twitter.com/Binance_DEX/status/1120996725513080834

Following the migration of Mithril (MITH), now Gifto (GTO) token will aim to make use of the chain’s speed and low transaction costs.

Just days after the mainnet launch, Binance announced the approach to issuing and listing tokens on the new network. The decision to list or migrate a token originates with the project, but Binance DEX recommends that all projects be ready with a rationale about the nature of the token and the project.

Afterward, Validators will vote to issue the token. Initially, all Validator nodes will be under the control of Binance, and voluntary actors will be added later. This is a different approach compared to other networks, where issuing tokens is a small technicality.

But the no-limits creation of tokens has also caused problems, including counterfeited digital assets and even joke tokens, as in the case of Useless Ethereum Token and Useless Waves Token. Other networks have also seen a proliferation of tokens with unknown purposes.

The approach of Binance in effect introduces a form of control to the creation of tokens. The aim is to ensure the listing of quality projects and avoiding scams, and some token proposals may be denied.

“Denied Proposals may lose all the funds deposited. As such, it is extremely important to publicly talk about your project and token in detail on the Community forum beforehand. The procedure is not rigid but the hope is that Binance Chain/DEX will be a place to issue and list good projects that can benefit the industry and the world, as do all the validators,” explained the Binance team. “Improper listing would not only increase the computing overhead of the network but also damage the reputation and growth of the Community as a whole,” Binance added.

The exchange also warns projects to wait for a few days before launching tokens, and take time to raise community awareness and get in contact with validators.