DeFi platform 1inch launches governance and utility token. According to an announcement on December 25, the team behind the DeFi platform 1inch is introducing a governance and utility token. 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 stakeholders to vote on the distribution of Spread Surplus coins. These are generated when the final rate for a transaction carried out via the aggregator service is higher than that confirmed by the customer.
The proceeds are divided between the referrer and the award for governance, with the proportion going to each determined by the DAO. The governance incentive will initially be set to zero. Stretched surplus coins will be converted into 1-inch tokens by means of the 1-inch Liquidity Protocol, 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.
[image: Terry]
