Binance will employ a mix of centralized and decentralized approaches in token listing and delisting.

According to a community post on Friday, Binance will employ a mix of centralized and decentralized approaches in token listing and delisting.

Binance is introducing "Vote to List" and "Vote to Delist" functionalities for tokens as part of a new listing and delisting strategy that will employ a mix of centralized and decentralized approaches, according to a community post on Friday.

To participate in the listing procedures, users must have at least 0.01 BNB in their master accounts, the post added. From there, they can select tokens within Binance’s Alpha Observation Zone.

The Alpha Observation Zone displays the new tokens that have undergone Binance’s (https://www.binance.com/) rigorous initial screening. Projects with the most votes and have passed due diligence checks are immediately listed on the platform.

The exchange will also offer a self-nomination application method later for projects that have already undergone a Token Generation Event (TGE) but have not yet entered the platform’s Alpha Observation Zone.

The same minimum BNB requirement applies for the delisting of tokens Binance flagged and are under scrutiny in the Monitoring Zone. Tokens that lack product development updates, show inactivity from their core team and community, inflate their supply without due process, and display significant risks to users are immediately placed in the Monitoring Zone.

However, Binance has yet to release details regarding the exact voting mechanics of tokens due for delisting.

Token Supply Far Exceeds Demand

Binance’s move is a response to the influx of new tokens in the crypto market. Tangem estimates a total of 36 million tokens already in circulation.

This is a considerable increase from the less than 10,000 tokens circulating in 2017 and fewer than the 100,000 tokens available in 2021.

The crypto wallet producer noted that the trend has resulted in token supply far exceeding customer demand. In addition, it could be the reason why the broad-based altcoin season of the past may unlikely happen again.

Binance’s decision follows Coinbase’s proposal to employ community-driven allow-list and block-list features to streamline its token review process.

Coinbase CEO Brian Armstrong earlier expressed his concern about the sheer volume of token applications on their platform, with the numbers going at an average of one million tokens weekly.

With that, Armstrong suggested integrating a new customer review system and an automated scan of on-chain data to help users determine the level of reliability or risk involved in various projects while speeding up token listing procedures.