The team behind the DeFi platform 1inch is releasing a control and supply token, according to an announcement on 25 December. The 1INCH token will be used for both the platform’s automated market maker protocol and its decentralized exchange aggregator service.
The “Aggregation Protocol” control module will allow stakeholders to vote on the distribution of Spread Surplus coins. These are created when the final rate of a transaction made through the aggregator service is greater than that confirmed by the user.
The proceeds are distributed between the referrer and the government reward, with the share going to each determined by the DAO. Initially, the steering reward is set to zero.
Scattered surplus coins are converted to 1INCH tokens via 1inch Liquidity Protocol, formerly known as Mooniswap.
The “Liquidity Protocol” management module allows stakeholders and liquidity providers to vote on the most important protocol parameters. These include price impact fee, swap fee, government reward, referral reward and lapse time.
Some of these parameters are managed on the basis of an individual liquidity pool basis, while others and default values apply to all pools.
In addition, there will be a liquidity mining program introduced to 6 new pools that pair 1INCH tokens with ETH, DAI, WBTC, USDC, USDT and YFI.
30% of the total token supply of 1.5 billion 1INCH is set aside for community incentives over the next four years. A further 14.5% is reserved for the Protocol’s Growth and Development Fund, which will also be unlocked over the next four years.
The initial circulation supply on the release date will be 6%, with an additional 0.5% being issued during the first two weeks of the liquidity mining program. This begins on December 28 at midnight UTC.
Like Cointelegraph reported, earlier this month, 1 Inch closed a successful $ 12 million round of financing, led by Pantera Capital.