The decentralized exchange (DEX) aggregation platform 1inch has officially launched its native governance token, 1INCH, marking a pivotal moment in its evolution toward community-driven development. With a total supply of 1.5 billion tokens, the rollout introduces new incentives for users, liquidity providers, and long-term participants in the decentralized finance (DeFi) space.
This strategic move aligns with growing trends in tokenized governance, where platforms empower their user base to influence protocol upgrades, fee structures, and ecosystem expansion. The 1inch team emphasizes that 1INCH was not sold to investors or the public—instead, it’s distributed as a reward for active engagement, reinforcing a fair-launch ethos similar to pioneers like Uniswap.
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Token Distribution and Airdrop Eligibility
The initial release of 1INCH includes 6% of the total supply (90 million tokens) allocated for airdrops to early users, plus an additional 0.5% (7.5 million tokens) reserved for participants in the platform’s liquidity mining program.
To qualify for the airdrop, wallets must have interacted with 1inch before December 24, 2020, at 00:00 UTC (8:00 AM Beijing time) and met at least one of the following criteria:
- Completed at least one transaction on 1inch before September 15, 2020
- Executed more than four transactions between September 15 and December 24, 2020
- Traded over $20 worth of assets using the 1inch aggregator
This inclusive approach ensures recognition for both long-term supporters and newer users who contributed to platform activity during a critical growth phase.
Additionally, users who participated in Phase 1 and Phase 2 of the 1inch liquidity mining initiative will receive proportional token rewards based on their contribution duration and liquidity depth.
Liquidity Mining Pools Now Live
To further incentivize ecosystem participation, 1inch has launched six dedicated liquidity mining pools, enabling users to earn 1INCH tokens by providing dual-asset liquidity. These pools include:
- 1INCH-ETH
- 1INCH-DAI
- 1INCH-WBTC
- 1INCH-USDC
- 1INCH-USDT
- 1INCH-YFI
By depositing equal values of both assets into these pools, liquidity providers (LPs) can earn yield through trading fees and bonus token emissions. This model not only strengthens the platform’s liquidity backbone but also aligns LP incentives with the long-term success of the protocol.
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Transparent Tokenomics for Sustainable Growth
The 1inch team has outlined a clear and time-locked distribution plan to ensure fairness, sustainability, and resistance to market manipulation. Here's the full breakdown of the 1.5 billion 1INCH token allocation:
- 30% (450 million) – Network security and protocol maintenance (4-year vesting)
- 22.5% (337.5 million) – Core team and future employees (4-year vesting)
- 21% (315 million) – Ecosystem development, including grants and liquidity programs (4-year vesting)
- 19.5% (292.5 million) – Investors and shareholders (2.5-year vesting)
- 5% (75 million) – Advisors (4-year vesting)
- 2% (30 million) – Early liquidity providers of Mooniswap (1-year vesting)
Notably, all allocations are subject to gradual unlocking schedules, minimizing sudden sell pressure and promoting long-term alignment across stakeholders.
Sergey Maslennikov, spokesperson for 1inch, confirmed that Mooniswap, the team’s original automated market maker (AMM), has been rebranded as the 1inch Liquidity Protocol. This unification under a single brand streamlines product identity and enhances interoperability across services.
Governance Powers: Voting on Price Surplus and Beyond
Holding 1INCH grants users more than just economic rights—it unlocks direct influence over key protocol parameters. One of the most innovative governance features is control over the Spread Surplus Pool.
Here’s how it works: when a user swaps tokens on 1inch, they’re shown an expected output amount. If price movements during transaction processing result in more tokens being received than estimated, this excess is known as the spread surplus.
For example:
“Say a user trades ETH for DAI and expects 1,000 DAI. If market conditions shift slightly and they actually receive 1,005 DAI, that extra 5 DAI becomes spread surplus,” explains Maslennikov.
These surplus amounts accumulate in a special pool, which is periodically converted into 1INCH tokens. Governance participants can then vote on how these funds are used—whether to redistribute them to referrers, fund development grants, or reinvest in liquidity incentives.
This mechanism turns otherwise invisible trading inefficiencies into a valuable revenue stream for the community—a novel twist on value capture in DeFi.
Strategic Vision: Challenging Uniswap with Community Power
Sergej Kunz, CEO of 1inch, believes that well-designed community incentives can propel the platform past current market leaders like Uniswap. Drawing parallels to Uniswap’s successful UNI airdrop—which boosted user engagement and liquidity—Kunz sees 1INCH as a catalyst for accelerated growth.
He estimates that around 50,000 wallets will receive tokens in the first distribution round. By rewarding genuine usage rather than speculative behavior, 1inch aims to build a loyal, active user base capable of driving organic adoption.
As DeFi continues to mature, platforms that prioritize decentralization, transparency, and user empowerment are best positioned to lead. With its thoughtful token design and strong community focus, 1inch is emerging as a serious contender in the next generation of decentralized trading infrastructure.
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Frequently Asked Questions (FAQ)
Q: What is the total supply of 1INCH tokens?
A: The maximum total supply is capped at 1.5 billion 1INCH tokens, with no plans for further issuance.
Q: Did 1inch sell its tokens to investors?
A: No. The 1INCH token was not sold publicly or privately. It was distributed via airdrops and liquidity mining to reward early users and contributors.
Q: How can I earn 1INCH tokens now?
A: You can participate in one of the six live liquidity mining pools (e.g., 1INCH-ETH, 1INCH-USDC) by providing liquidity on supported networks.
Q: Can I vote on protocol changes with my 1INCH tokens?
A: Yes. Token holders can participate in governance decisions, including how spread surplus revenue is allocated and future ecosystem initiatives.
Q: What happened to Mooniswap?
A: Mooniswap has been rebranded as the 1inch Liquidity Protocol, integrating its functionality directly into the broader 1inch ecosystem.
Q: Are there any immediate selling restrictions on airdropped tokens?
A: While airdropped tokens are immediately transferable, other allocations (team, investors, advisors) are subject to multi-year vesting schedules to prevent market flooding.
By combining innovative mechanics like spread surplus redistribution with fair distribution principles, 1inch is setting a high standard for decentralized governance in 2025 and beyond. As the DeFi landscape evolves, protocols that empower real users—not just whales or insiders—will define the future of open finance.