- Version2 of the 1inch DEX’s liquidity protocol is now live
- The newly released token holders will have the voting right on the spread surplus decisions of the exchange
- The exchange will distribute the tokens to users under some fulfilled criteria and also to its liquidity providers
1inch, this year’s fastest-growing decentralized exchange, has released its governance token entitled “1INCH”. The exchange distributed the tokens among its users. It is observed that the current market supply of the token is 1.5 billion, that is around 6% of the total cryptocurrency supply. However, the newly launched token is the governance token, that allows its holders to gain the right to vote on the decisions of the exchange. According to the exchange, it will use the token as a feature to speed up the decision-making process by providing transparency and efficiency to the community voting.
What governance authority does 1INCH token provide?
The holder of 1INCH token can participate in the voting round on how to set the distribution setting of Spread Surplus. The holders can stake the token to vote for providing their decision on the distribution of the benefit to the exchange side, which occurs when a swap transaction is executed at a price more than the quoted price. It is known that the decision is vital as though the exchanges strive to offer the best price but several times a time difference between the price offered and token mined into the blockchain results in spread surplus.
On what basis the exchange will distribute the token?
1inch crypto exchange will distribute its token to the users using their services by 24th December. However, there will be several conditions that should meet to get the tokens. According to the exchange, to get the token, users could have made at least one transaction before 15th September, made at least more than four trades, and dealt a total amount of $20.
It is also revealed that the new token will also be distributed to the liquidity providers. However, six liquidity program has been added, 1INCH/ETH, 1INCH/DAI, 1INCH/WBTC, 1INCH/USDC, 1INCH/USDT, and 1INCH/YFI pairs respectively, which means if users are staking their fund in these pools can receive the token.
How will the exchange circulate the supply of the token?
It is known that on the release day, the initial circulating supply will be 6% of the total newly issued token. 30% of the token’s total supply will be unlocked and distributed over the next four years to the community incentives. On the other hand, 14.5% of the total supply will form the protocol’s growth and development fund. Over the two week liquidity program the exchange will provide additional 0.5% of token supply.
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