DeFi Christmas: DEX Aggregator 1inch Launches Governance Token to Take On Uniswap

The DEX aggregator (Decentralized Exchange) 1 Zoll has issued its own governance token.

1inch and Mooniswap DEX users, founded by the same executives, are rewarded with some sort of Christmas present and have their say on issues like fees, referral rewards, and other governance issues.

The token named 1INCH, which runs on the Ethereum blockchain, will be distributed to all wallets that have previously interacted with 1 inch (under certain trading conditions). The giveaway follows Uniswap’s approach, which sparked a surprise drop in UNI tokens to previous users in September (valued well over $ 1,000 at the time).

Similar to Uniswap, 1inch is also announcing a liquidity mining program starting December 28th for 1INCH liquidity providers.

Mooniswap, in turn, has just been renamed the 1-inch liquidity protocol, so the team is bringing all startups under one brand, 1-inch spokesman Sergey Maslennikov told CoinDesk.

Just like Uniswap’s UNI drop of air boosted activity on this website, CEO Sergei Kunz said the new token will help accelerate 1 inch growth.

“With the right community incentives, we see an opportunity to get a critical mass of liquidity to beat Uniswap,” said Kunz CoinDesk via a spokesman.

Kunz estimates that in the first sales round, around 50,000 wallets will receive the 6% of the 1-INCH offer. The current offering of 1 INCH is 1.5 billion tokens.

Among other things, 1INCH token holders can vote on the settings of the so-called spread surplus pool, which accumulates the “remnants” of swap transactions if the price of an exchanged token changes during the transaction period.

“Let’s say a user swaps some ETH for DAI and sees the amount of DAI they should get. If the price changes while the transaction is being processed and the user should get more DAI for their ETH, that is the spread excess, ”explained Maslennikov.

These “leftovers” are collected in a special pool, the proceeds of which are exchanged for 1 ZOLL and either claimed by the governance participants or distributed to the referrers.

1inch was started at the ETHGlobal Hackathon in 2019 by Kuntz, a former software engineer at Porsche, and CTO Anton Bukov, a former smart contract developer at NEAR Protocol. The project raised $ 14.8 million in two rounds earlier this year from Binance Labs, Pantera, and others.

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