DeFi project 1inch launches its namesake governance token, with a portion distributed to users.

The liquidity aggregator from decentralized exchanges, 1inch, released the ‘instant governance’ token 1INCH. It is used only within the ecosystem and allows the community to vote on protocol settings, ForkLog representatives said.

The total supply amounts to 1.5 billion 1INCH. Initially, 6% will be in circulation. The community will receive 30% of the tokens, 14.5% for the development fund. They will be distributed over four years.

Tokens will be distributed to participants of two liquidity mining programs and wallets that interacted with the aggregator before 00:00 UTC on December 24 and met one of the following conditions:

• at least one trade before September 15.
• trades totaling at least $20.
• at least four trades.

Tokens can be claimed on the 1inch website by connecting a wallet via WalletConnect or another option.

Update: As of 14:00 Moscow time, a total of 55.8 million coins have been distributed among 15,652 wallets. This is 62% of the 1INCH tokens allocated for the airdrop. The coin trades around $2.80, according to CoinGecko.

Data: Dune Analytics.

The liquidity mining will launch at 00:00 UTC on December 26 for providers in six pools:

• 1INCH – ETH;
• 1INCH – DAI;
• 1INCH – WBTC;
• 1INCH – USDC;
• 1INCH – USDT;
• 1INCH – YFI.

In the first two weeks, 0.5% of the total supply will be distributed among them.

With 1INCH, users govern the aggregation and liquidity protocols. In the first case they vote on how the spread surplus should be allocated between referral rewards and governance rewards.

In the second case, users and providers vote on changes to key parameters—from fees to referral rewards. The developers implemented two governance types: general parameter settings (Factory governance) and per-pool parameters (Pool governance).

The voting weight is proportional to the amount of tokens held by the user. The 1inch protocol gradually applies new votes over a 24-hour period.

In August, the 1inch developers integrated the Mooniswap automated market maker algorithm into the aggregator. The same time the first phase of token distribution began.

From November 18, among liquidity providers in four Mooniswap pools (ETH – WBTC; ETH – USDC; ETH – DAI; ETH – USDT) an additional distribution of 1% of the 1INCH supply began.

In the same month, the project founders updated the platform, adding a tool to find the best swap opportunities for tokens in a short time called Pathfinder. This algorithm, together with Mooniswap will be deployed on the NEAR blockchain in 2021.

On December 2, 1inch attracted $12 million in investments from Pantera Capital, Blockchain Capital, Fabric Ventures, Josh Hanna and other participants. The funds will be used to develop products, expand the team, and enter new markets.

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