Just like Binance, this looks like a way to push their blockchain and coin. I don't think I could say its a step backward though because the fact that we are being able to retain full control over our private keys is already a huge step forward and could make us avoid inside jobs or hacks easily.
they retain private keys that unlock proxy tokens
on binance's private blockchain. we're going from DEX trading with eg ethereum's POW security to a private federated or DPOS blockchain. when CZ did an AMA recently,
he confirmed there will be
11 validator nodes securing binance chain. lol!!! that's a huge step backwards. it's more centralized than ripple!
when you look at what bitshares and ethereum have already done, and what blocknet and komodo are building......what binance is doing is the most centralized attempt at a DEX yet. (that is, until okex releases theirs lol)