The team behind the DeFi platform 1inch is releasing a governance and utility token, according to a Dec. 25 announcement. The 1INCH token will be used for both the platform’s automated market maker protocol and the decentralized exchange aggregator service.
The Aggregation Protocol management module allows strikers to 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 the user-confirmed rate.
The proceeds are divided between the referrer and the board remuneration, with the proportion to each determined by the DAO. Initially, the board remuneration is set at zero.
Surplus coins are converted into 1INCH tokens via the 1inch Liquidity Protocol formerly known as Mooniswap.
The “Liquidity Protocol” management module allows strikers and liquidity providers to vote on important protocol parameters. These include price impact fee, swap fee, board fee, referral fee, and expiration time.
Some of these parameters are determined based on the individual liquidity pool, while others and default values apply to all pools.
In addition, a liquidity mining program will be introduced for 6 new pools, linking the 1INCH tokens to ETH, DAI, WBTC, USDC, USDT and YFI.
30% of the total 1.5 billion 1INCH token supply has been allocated to community incentives over the next four years. A further 14.5% is reserved for the growth and development fund protocol, which will continue to be unlocked over the next four years.
The initial circulation inventory on the release day is 6%, with an additional 0.5% being spent during the first two weeks of the liquidity mining program. This starts at midnight UTC on December 28.
Such as Cointelegraph reported, 1inch closed a successful $ 12 million round of funding earlier this month led by Pantera Capital.