The decentralized finance (DeFi) landscape continues to evolve at breakneck speed, and 1inch is at the forefront of this transformation. As one of the most innovative DeFi protocols, 1inch has consistently delivered tools that empower users to trade more efficiently, access deeper liquidity, and maximize returns. The upcoming launch of the 1INCH token marks a pivotal moment in the project’s journey — not as an investment vehicle, but as a utility-driven instrument designed to decentralize governance, incentivize participation, and secure the long-term sustainability of the ecosystem.
Disclaimer: The 1INCH token has not yet been released. Please wait for the official announcement.
The Genesis of 1inch
Founded over a year ago by Anton Bukov and Sergej Kunz during the ETHNewYork hackathon, 1inch began as a solution to a common pain point: inefficient trading across multiple decentralized exchanges (DEXs). Manually comparing prices on platforms like Uniswap, Kyber, and 0x was time-consuming and often led to suboptimal execution.
Their answer? An intelligent decentralized exchange aggregator that scans multiple DEXs in real time, splits trades across liquidity sources, and routes them through connector tokens to deliver the best possible rates — all in a single transaction. This innovation drastically reduced slippage and gas costs, quickly establishing 1inch as a go-to platform for savvy DeFi users.
By July, 1inch had achieved a milestone of $1 billion in total trading volume, earning recognition even from pop culture with a congratulatory video by Russ Hanneman — a fictional but iconic figure from HBO’s Silicon Valley. While he famously “put radio on the Internet,” 1inch is credited with helping put DeFi on the moon.
Introducing Mooniswap: A Next-Gen AMM
Beyond aggregation, 1inch expanded its technological footprint with Mooniswap, its own Automated Market Maker (AMM) protocol. Unlike traditional AMMs that suffer from impermanent loss and front-running, Mooniswap introduces virtual balances — a novel mechanism that delays price updates to reduce arbitrage opportunities and increase profits for liquidity providers (LPs).
This innovation positions Mooniswap as one of the most LP-friendly AMMs in the market, aligning incentives between traders and providers while enhancing capital efficiency.
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Shortly after Mooniswap’s launch, 1inch secured $2.8 million in funding from top-tier investors including Binance Labs, Galaxy Digital, Dragonfly Capital, FTX, and others — a strong vote of confidence in the team’s vision and execution capability.
What Is the 1INCH Token?
The 1INCH token is the native utility token of the 1inch Network. It is not an investment product but a governance and incentive mechanism designed to foster a truly decentralized, permissionless ecosystem.
Core Functions of the 1INCH Token
- Governance Participation: Token holders can propose and vote on key protocol upgrades and parameter changes.
- Network Security: Staking 1INCH helps secure the network and validate actions within certain modules.
- Ecosystem Development: Funds raised through token mechanisms support research, community initiatives, and future innovations.
- User Incentives: Rewards for active participants, especially liquidity providers and frequent traders.
Importantly, using 1inch.exchange or Mooniswap does not require holding 1INCH tokens. However, owning or interacting with the token unlocks additional benefits such as yield farming rewards, governance rights, and staking incentives.
All network data remains transparent and publicly accessible, reinforcing 1inch’s commitment to openness and decentralization.
1INCH Token Distribution Plan
To ensure fairness and long-term alignment, the total supply of 1INCH tokens will be distributed over a maximum period of four years. Here's the breakdown:
- 30% – Network security and protocol functionality (4-year vesting)
- 22.5% – Core team and future employees (4-year vesting)
- 21% – Ecosystem growth (yield farming, community programs, R&D; 4-year vesting)
- 19.5% – Investors (2.5-year vesting)
- 5% – Advisors (4-year vesting)
- 2% – Early Mooniswap liquidity providers (1-year vesting)
The initial circulating supply will represent 16% of the total allocation, focused on network security, operations, marketing, and community development.
This structure ensures that no single group controls the majority of tokens at launch, promoting decentralization from day one.
Clarifying Community Allocation
There has been some confusion about community ownership. Let’s set the record straight:
- 21% is allocated to Ecosystem Growth — which includes yield farming, community grants, and user incentives.
- An additional 2% goes directly to early liquidity providers on Mooniswap.
✅ Total community allocation: 23%
✅ Team allocation: 22.5%
Yes — the community gets more than the team. Because at 1inch, Community > Team 💖
Liquidity Mining on Mooniswap
To reward early supporters and bootstrap liquidity, 1inch introduced a retroactive distribution model for early Mooniswap LPs. A total of 2% of the 1INCH supply is reserved for those who provided liquidity before the token launch.
How It Works
- Eligible LPs receive vouchers sent to their Ethereum addresses.
Each voucher represents a proportional share of 1INCH tokens based on:
- Duration of liquidity provision
- Size of contribution relative to total pool
- Tokens unlock gradually — every second — via vesting.
- Vouchers are valid for 18 months; after expiration, unclaimed tokens are forfeited.
Once unlocked, users can swap their 1INCH tokens on 1inch.exchange for any supported cryptocurrency via the “swap” tab.
This retroactive model honors true believers who helped shape Mooniswap’s early success — without requiring upfront token giveaways or speculative farming.
Yield Farming with 1INCH
Following the token launch, 1inch plans to launch yield farming programs funded by the Ecosystem Growth pool (21%). These initiatives will incentivize liquidity provision in key trading pairs by offering direct 1INCH rewards — with no vesting period during active farming periods.
While specific pools and reward schedules will be announced soon (TBA), expect high-yield opportunities across major asset pairs like ETH-stablecoins, cross-chain assets, and emerging DeFi tokens.
Yield farming isn’t just about short-term gains — it’s a strategic tool to grow the ecosystem sustainably by attracting long-term participants who believe in 1inch’s mission.
👉 Learn how top DeFi platforms optimize yield farming returns
Frequently Asked Questions (FAQ)
Q: When will the 1INCH token be launched?
A: The exact date has not been announced. Stay tuned to official channels for updates in the coming weeks.
Q: Can I buy the 1INCH token before launch?
A: No. The 1INCH token is not for sale. It will be distributed as a reward for using 1inch products and participating in the ecosystem.
Q: Is the 1INCH token required to use 1inch.exchange?
A: No. You can use all core features — including swapping and aggregating trades — without holding 1INCH tokens. However, holding or staking the token unlocks governance rights and additional incentives.
Q: How do I qualify for retroactive rewards as a Mooniswap LP?
A: If you provided liquidity to eligible pools before the token launch, your address will automatically receive a voucher with vested 1INCH tokens. No action is needed until claims open.
Q: What happens if I don’t claim my vested tokens within 18 months?
A: Unclaimed tokens after the 18-month validity period will be permanently forfeited. Be sure to monitor your wallet and claim before expiration.
Q: Will there be future airdrops or community distributions?
A: Yes. The Ecosystem Growth fund (21%) is dedicated to ongoing community incentives, including future airdrops, bounties, grants, and yield farming campaigns.
👉 Stay ahead of DeFi token launches and reward programs
Final Thoughts
The introduction of the 1INCH token is more than just a milestone — it’s a declaration of intent. By prioritizing decentralization, equitable distribution, and community empowerment, 1inch is setting a new standard for what a sustainable DeFi protocol can be.
With cutting-edge technology like Mooniswap, robust funding from industry leaders, and a clear roadmap for community-driven growth, 1inch is well-positioned to remain a cornerstone of the decentralized economy.
As always, transparency and user empowerment remain at the heart of everything we do.
Core Keywords: 1INCH token, liquidity mining, yield farming, Mooniswap, DeFi protocol, token distribution, decentralized exchange aggregator, retroactive rewards