According to a December 25 announcement, the team behind DeFi project 1INCH is launching a governance and utility token. For both the platform’s decentralized market maker protocol and its decentralized exchange aggregator function, the 1INCH token will be used.
The governance module of the “Aggregation Protocol” would allow stakeholders to vote on the allocation of Distributed Surplus coins. These are generated where the final rate is higher than that confirmed by the user for a purchase conducted via the aggregator service.
The proceeds are divided between the referrer and the reward for governance, with the percentage going to the DAO’s decision on each. The governance incentive will initially be set to zero. Spread surplus coins can be exchanged via the 1-inch Liquidity Protocol, formerly known as Mooniswap, into 1INCH tokens.
According to cointelegraph.com, the governance module of the “Liquidity Protocol” would allow stakers and liquidity providers to vote on major parameters of the protocol. These include the fee for price effect, swap cost, reward for governance, bonus for referral and time for decay. Any of these criteria will be regulated on the basis of an individual liquidity pool, while all pools will be subject to others and default values.
In addition, for 6 additional pools, a liquidity mining system will be launched, combining the 1INCH tokens with ETH, DAI, WBTC, USDC, USDT and YFI.
For the next four years, 30 percent of the overall token supply of 1.5 billion INCH was dedicated to community rewards. The protocol growth and development fund is allocated for another 14.5 percent, which is still to be unlocked within the next four years.For the first two weeks of the liquidity mining plan, the initial circulation availability on release day would be 6 percent, with another 0.5 percent being released. This will start at midnight UTC on December 28. As Cointelegraph reported, earlier this month 1inch closed a successful $12 million funding round, led by Pantera Capital.