Binance’s New Competition Format is Even More Controversial than the Last

Binance’s New Competition Format is Even More Controversial than the Last

Binance has finally announced the details of its seventh monthly “Community Coin of the Month” – and whilst the change in format of the competition has been motivated by a series of controversies which dogged its last outing four months ago, it appears that the new format will be no less likely to stir up a storm.

The cryptocurrency exchange platform has outlined a new voting procedure that will be weighted according to the BNB holdings of users who participate in the vote. And the move has not inspired too much confidence.

“Up to x500 Weighting”

Amongst the competitors this month chasing a free listing on the world’s leading trading platform – thought to cost anything up to one million dollars per trading pair –  are PundiX, Ravencoin, Havven, Oyster and Fusion.

Previously, the winner was decided by counting the absolute number of votes in favour of a project – but that approach appeared to result in previous competition participants encouraging their followers to sign up with Binance in order to lodge a vote in their favour, often receiving a payment from ICO project teams for doing so.

Whilst Binance had published no such formal guidelines outlining how project teams should conduct their campaigns during the competition, it ultimately refused listings to a number of projects (WePower and Elastos) for having engaged in such tactics – although the platform did ultimately list WePower.

Going forwards, however, it is not the absolute number of votes which will determine the project which wins a free listing, but the combined BNB holdings of those who vote in its favour – although larger BNB holders will be limited to a x500 weighting over those voters with minimal BNB holdings.

“Instead of addressing the problem of manipulating voting numbers, the new rules simply narrow down the field of voters who will be targeted by such manipulation,” one commentator declared on Reddit.

The voting procedure also means – bizarrely – that any vote submitted by someone with less than 1 BNB (but with more than the 0.1 BNB required to vote) will effectively see their vote diluted in comparison to the previous competition rules. “Yea, Binance tends not to think these things through,” another Reddit commentator pointed out.

Voting for the current round will close at 00:00 UTC on June 19th.