The team behind the DeFi platform According to an announcement made on December 25, 1inch is launching a governance and utility token. The 1-INCH token is used for both the platform’s automated market-making protocol and the decentralized exchange aggregation service.
The governance module “Aggregation Protocol” enables participants to vote on the distribution of spread surplus coins. They are created when the final rate of a transaction made through the aggregator service is higher than that confirmed by the user.
The revenue is split between the sender and the governance reward, with the DAO setting the ratio in each case. First, the governance reward is set to zero.
Excess spread coins are converted to 1-INCH tokens via the 1-inch liquidity protocol previously known as Mooniswap.
The governance module of the “liquidity protocol” enables stakeholders and liquidity providers to vote on the main parameters of the protocol. These include the Price Impact Fee, Swap Fee, Governance Reward, Referral Reward, and Downtime.
Some of these parameters are regulated based on a single liquidity group, while others and the default values apply to all pools.
In addition, a liquidity mining program will be introduced for 6 new pools, in which 1-INCH tokens will be matched with ETH, DAI, WBTC, USDC, USDT and YFI.
30% of the total EUR 1.5 billion token offering was allocated to community incentives over the next four years. Another 14.5% is reserved for the Protocol Growth and Development Fund, which will also be unlocked over the next four years.
The initial floating offer on the launch day is 6% and an additional 0.5% will be issued in the first two weeks of the liquidity mining program. This begins on December 28th at midnight UTC.
As Cointelegraph reported, 1INCH closed a successful $ 12 million financing round earlier this month, led by Pantera Capital.