Binance, the largest centralized exchange platform in the world, has announced a new community co-governance structure for token listing. This innovation allows users to vote for the addition or removal of tokens from the exchange market.
Binance: the new co-governance for token listing
According to the official announcement, Binance will select certain crypto projects that will be subject to the community vote. The tokens that receive the highest number of votes will be added to the platform, pending verification by the exchange.
In parallel, Binance has introduced a new measure to ensure transparency and quality among the listed projects. The projects that do not provide regular updates, do not present the required information, or are managed by inactive teams will be moved to the “monitoring zone”.
Once placed in this category, the community of Binance will be able to vote for the removal of these tokens from the platform.
Explosive growth of cryptocurrencies and the need for new rules
The introduction of this governance structure arises in response to an unprecedented phenomenon: the number of new tokens and crypto projects is growing at exponential rates.
CoinMarketCap reported less than 11 million cryptocurrencies on February 8. Today, the number has reached 12.4 million, showing a dizzying growth in a few weeks.
The disproportionate increase of new cryptocurrencies is creating difficulties for the exchanges, which must review their selection criteria to avoid listing unreliable or questionable quality projects.
The effects of the proliferation of tokens on the market
Some analysts in the sector believe that the rapid expansion of new tokens has direct consequences on cryptocurrency prices. The competition among emerging assets to attract capital and investors increases the fragmentation of liquidity, reducing the growth potential for many of them.
This dynamic could hinder a potential altcoin season, limiting the classic phenomenon in which alternative cryptocurrencies to Bitcoin experience strong bull runs.
Coinbase follows Binance and considers a change in the listing process for new tokens
The focus on token selection procedures is not only about Binance. Coinbase, one of the main exchange platforms in the United States, has also stated that it wants to review its listing process.
The CEO of Coinbase, Brian Armstrong, emphasized this necessity in a post on X. Armstrong revealed that the creation of about 1 million new tokens per week makes it impossible to manually evaluate each crypto asset:
“We need to rethink our listing process on Coinbase as approximately 1 million tokens are being created per week and the number is growing.”
The CEO also highlighted how the current regulatory authorization model for each token is no longer sustainable.
As a result, Coinbase is considering adopting a system based on an “allow-list” and a “block-list”, modeled in part on on-chain data and community assessments. This solution would allow the exchange to manage new cryptocurrencies more effectively, simplifying the selection of valid projects.
The future of exchanges and cryptocurrencies
The new measures introduced by Binance and the considerations of Coinbase show that the main players in the crypto sector are adapting their listing strategy.
The enormous influx of new tokens necessitates the need for more selective and reliable systems. The involvement of the community in listing and delisting decisions could represent a significant turning point in the crypto sector, improving transparency, security, and reliability of centralized platforms.
Source: https://en.cryptonomist.ch/2025/03/10/binance-introduces-a-community-governance-system-for-the-listing-of-tokens/