In a latest announcement, 1inch exchange introduces a governance and utility token. The 1inch token will support both the platform’s automated market protocol and its DEX (Decentralized exchange aggregator) service. The 1inch plans to promote the adoption of the 1INCH token through the permissionless and decentralized 1inch Network. The “Aggregation Protocol” governance module will enable stakers to vote on Spread Surplus coins’ distribution. These are developed after the ultimate rate for a transaction undertaken via the aggregator service is more than that offered by the user.
The profits are distributed among the referrer and the governance rewards. However, DAO will decide the proportion of the profits. Moreover, the governance reward will be zero in the beginning. The 1inch liquidity tokens will convert Spread surplus coin to 1inch token. Spread Surplus pool collects the “leftovers” of swap transactions when the cost of a swapped token alters during the time of transaction. These “leftovers” will be collected in a special pool, from where the proceeds can split as mentioned above.
1inch introduces Liquidity Mining Program for six new pools
Further, the “Liquidity Protocol” governance module will provide stakers and liquidity providers to vote on major protocol parameters. These involve swap fee, price impact fee, referral reward, governance reward, and decay time. Moreover, there will be a liquidity mining program launched for six new pools. It pairs the 1INCH tokens with ETH, DAI, WBTC, USDC, USDT, and YFI. 30% of the complete token supply of 1.5 billion 1INCH has been allocated to community incentives across the next four years. However, they have reserved another 14.5% for the protocol expansion and development fund. Further, it will unlock over the next four years.
Besides, the primary circulation supply on release day will be 6%. 0.5% of the circulation will occur in the first two weeks of the liquidity mining program. This will begin on Dec.28. Moreover, 1inch provides users more reliable rates for cryptocurrency swaps than any particular crypto exchange could. Furthermore, 1inch saves users time as they don’t have to check each exchange for satisfactory swap prices.
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