DeFi platform 1inch releases governance and utility token
The team behind DeFi platform 1inch is releasing a governance and utility token, according to an announcement on December 25th. The 1-INCH token is used for both the platform’s automated market maker protocol and the decentralized exchange aggregator service.
With the governance module “Aggregation Protocol”, stakers can vote on the distribution of spread surplus coins. These are created when the final rate for a transaction made through the aggregator service is higher than that confirmed by the user.
Proceeds are split between the referrer and the governance reward, with the portion going to each portion set by the DAO. Initially, the governance reward is set to zero.
Disseminated excess coins are converted into 1-inch tokens via the 1-inch liquidity protocol formerly known as Mooniswap.
With the governance module “Liquidity Protocol”, stakers and liquidity providers can vote on important protocol parameters. These include the Price Impact Fee, Swap Fee, Governance Reward, Referral Reward, and Cooldown Time.
Some of these parameters are regulated on the basis of a single liquidity pool, while others and default values apply to all pools.
In addition, a liquidity mining program will be introduced for 6 new pools, in which the 1-INCH tokens are combined with ETH, DAI, WBTC, USDC, USDT and YFI.
30% of the total token offering of 1.5 billion 1 INCHES was allocated to community incentives over the next four years. A further 14.5% is reserved for the fund for protocol growth and development, which is also to be activated in the next four years.
The initial circulation supply on the day of publication is 6%, with an additional 0.5% being issued in the first two weeks of the liquidity mining program. This begins on December 28th at midnight UTC.
As Cointelegraph reported, 1 Zoll closed a successful $ 12 million funding round earlier this month, led by Pantera Capital.