DEFI MARKET

DeFi | 1inch Launches Liquidity Mining, Token Distribution Ratio Sparks Outrage

2020/8/22

The news of decentralized exchange platform 1inch exchange issuing its platform token, 1inch Token, has been circulating in the market for some time. In addition to releasing the token economic model today (22), the official team has also launched a liquidity mining program. However, more specific details about the token are still pending the official announcement in a few weeks.

Table of Contents

Total Trading Volume Breaks 1.7 Billion to Seize Market Share

According to a report at the end of July, 1inch is a liquidity aggregation protocol that integrates the liquidity of protocols such as Kyber, Uniswap, Curve, Oasis, Bancor, and Balancer. When users place orders, 1inch will split the trades across different platforms to match the best trading price with low gas fees as much as possible.

Data from Dune Analytics shows that as of now, 1inch's trading volume has exceeded 1.7 billion and officially launched an automated market maker (AMM) trading platform - Mooniswap earlier this month.

Mooniswap Interface (Source: @1inch.exchange)

Previously, the 1inch team had confirmed the rumor of token issuance multiple times in the Discord community. Now, the token issuance is expected, but according to the official initial liquidity mining plan, liquidity providers can only receive the token 1INCH by participating in the designated fund pool of Mooniswap.

1inch network token (1INCH)

The official emphasizes that holding the 1INCH token is not necessary to use the 1inch and Mooniswap platforms; the token is only for providing additional incentives. The initial token distribution is as follows:

30% for network security and platform maintenance (unlocked in 4 years)
22.5% distributed to the 1inch core team and future employees (unlocked in 4 years)
21% for ecosystem development (unlocked in 4 years)
19.5% distributed to investors and shareholders (unlocked in 2.5 years)
5% distributed to advisors (unlocked in 4 years)
2% distributed to early liquidity providers of Mooniswap (unlocked in 1 year)