1inch, a DeFi platform, has just announced the release of its governance and utility token on December 25, 2020. It is revealed that the 1INCH tokens will be used for governing the automated market maker protocol of the platform and its decentralized exchange (DEX) aggregator as well.
Through the aggregation protocol governance module, stakers will get a chance to vote on the Spread Surplus coins distribution. These coins are created when the final transaction rate by the aggregator service goes above what the users have confirmed.
All the Spread Surplus Coins will be converted into the 1INCH tokens through the liquidity protocol of the platform. This 1inch liquidity protocol was earlier known as Mooniswap. Through this protocol, all the stakers and liquidity providers will be able to vote on some major parameters. These major parameters include governance reward, price impact fee, swap fee, decay time, and referral reward.
Here, a few parameters will require the individual liquidity pool basis for governance. However, others will be applied to all the pools. This is not all, as there will be a liquidity mining program as well that will be introduced for 6 new pools. Here the 1INCH tokens will be paired with USDT, YFI, WBTC, USDC, DAI, and ETH.
As per the announcement, among 1.3 billion 1INCH tokens, 30% has been allocated to the community incentives. Along with this, 14.5% of the supply has been kept in reserve for the growth of the platform. This amount will be unlocked over the period of the next four years. On the release day of the token, the initial circulation supply will be 6%. The DeFi platform also completed a $12 million funding round which was led by Pantera Capital, during the starting of this month.