DeFi platform 1inch releases governance and utility token
The team behind the DeFi platform 1inch is releasing a governance and utility token, according to a Dec. 25 announcement. The 1INCH token will be used for both the platform’s automated market maker protocol and its decentralized exchange aggregator service.
The “Aggregation Protocol” governance module will allow stakers to vote on the distribution of Spread Surplus coins. These are created when the final rate for a transaction undertaken through the aggregator service is greater than that confirmed by the user.
The proceeds are split between the referrer and the governance reward, with the proportion going to each decided by the DAO. Initially the governance reward will be set to zero.
Spread surplus coins will be converted into 1INCH tokens via the 1inch Liquidity Protocol, which was formerly known as Mooniswap.
The “Liquidity Protocol” governance module will allow stakers and liquidity providers to vote on major protocol parameters. These include price impact fee, swap fee, governance reward, referral reward and decay time.
Some of these parameters will be governed on an individual liquidity pool basis, whereas others, and default values, will apply to all pools.
Additionally, there will be a liquidity mining program introduced for 6 new pools, pairing the 1INCH tokens with ETH, DAI, WBTC, USDC, USDT and YFI.
30% of the total token supply of 1.5 billion 1INCH has been allocated to community incentives over the next four years. Another 14.5% is reserved for the protocol growth and development fund, also to be unlocked over the next four years.
The initial circulation supply on release day will be 6%, with another 0.5% being issued during the first two weeks of the liquidity mining program. This will begin on Dec. 28 at midnight UTC.
As Cointelegraph reported, earlier this month 1inch closed a successful $12 million funding round, led by Pantera Capital.
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