1inch announces full transition to a DAO

The DeFi project 1inch announced the transition to the second stage on the path to implementing a decentralized governance system for the protocol. Representatives of the project told ForkLog magazine.

The aim of the next stage is to implement ‘full DAO-functionality’ by giving the community direct control over enhanced governance mechanisms.

“The ultimate goal of this stage is for the 1inch Network protocol and the 1INCH token to become fully decentralised, owned by and governed by the DAO,” explained the developers.

The first stage of the protocol decentralisation started in December 2020. It was marked by the release of the 1INCH governance token, its distribution among users and the launch of the Instant Governance system.

The key element of the new phase will be the launch of the 1inch Network DAO Treasury, into which a long-term and sustainable stream of revenue will flow. 90% of participants voted for the proposal.

“The treasury is a key component of any successful DAO. The treasury allows the organisation to fund developments and implement participants’ proposals,” emphasised the developers.

To support the DAO Treasury, a multi-signature wallet has been created using Gnosis Safe. Transactions will be signed by 12 selected participants from the 1inch Foundation, including Tornado Cash, Synthetix, Opium, NEAR Protocol and zkSync.

“There will be no more income from staking funds in the governance contract, but the DAO will have full control over the funds and all aspects of the treasury,” noted the project representatives.

Currently the 1inch Foundation is developing the documentation covering all aspects of the governance process, including voting procedures and the vote-counting mechanism.

In October, 1inch Network presented the fourth version of the protocol.

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