1INCH is the utility and governance token of 1inch Exchange.
1inch token is used for
- Both token holders and liquidity providers can earn rewards and vote on protocol changes.
How could value accrue to 1inch token?
Governance tokens provides a potential of future cash flows to token holders.
Fees manageable by governance
- Primarily the spread surplus (the swap price sometimes moves between the time of the quote and when it is mined). Starting out, all goes to referrers but is subject to change through governance.
- Price impact fee
- Swap fee
- Governance reward
- Referral reward
- Decay period.
More in-depth here.
How 1inch Exchange works
1inch.exchange is a DEX Aggregator that checks 33+ liquidity protocols to find the best and most efficient swap paths, allowing traders to conduct more efficient token swaps at the best trade prices possible at any time.
1inch Liquidity Protocol
- An Automated Market Maker (AMM) that works on the Delayed Price Updates mechanism.
- Increases rewards for Liquidity Provider, protects swappers from front-running attacks, and reduces profits for arbitrageurs.
- Version 2 of the Liquidity Protocol is an updated version of the AMM also known as Mooniswap.
Total token supply: 1,500,000,000 1INCH; Maximum vesting period: 4 years.
- Initial circulating supply: 6% (allocated to the security of the network, maintenance of its functionality, marketing, and community development.)
- 20 % Investors and shareholders
- 0,5 % Liquidity pools
- 30% Security and maintenance
- 22.5% Core team and future employees, which will be unlocked and distributed over the next four years.
- 21% Ecosystem growth (community) and 2% to Mooniswap liquidity providers (1-year vesting).
All wallets that interacted with the 1inch protocol before 24th December will get the 1INCH tokens, provided that they meet the following requirements: Completed at least a trade before 15th September, 2020; or four total trades worth at least $20.