The team behind DeFi platform 1inch is releasing a management and utility token, according to an announcement on December 25. The 1INCH token will be used for both the platform’s automated market maker protocol and the decentralized exchange aggregator service.

 

The “Aggregation Protocol” management module will allow shareholders to vote for the distribution of their coins. These are created when the final rate for a transaction performed through the aggregator service is higher than the user approved.

Coin revenues

The revenues are driven by the rate decided by the DAO and split into management rewards. Initially, the management reward will be set to zero.

The “Liquidity Protocol” management module will allow shareholders and liquidity providers to vote on the main protocol parameters. These include price impact fee, clearing fee, management award, referral award.

Some of these parameters will be managed on the basis of a separate liquidity pool, while others and default values ​​will apply to all pools.

Liquidity mining program

In addition, a liquidity mining program will be launched for 6 new pools that pairs 1INCH tokens with ETH, DAI, WBTC, USDC, USDT and YFI.

30% of the total token supply of 1.5 billion 1INCH was allocated to community incentives over the next four years. Another 14.5% was allocated to the protocol growth and development fund, which will be opened in the next four years.

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On the day of launch, the initial circulation supply will be 6% and the 0.5% liquidity will be issued in the first two weeks of the mining program. This program will start on December 28th.

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