DeFi 1inch Network All you need to know

How the 1inch DAO is implemented

1inch Network-photo

by 1inch Network

• 2 min read

In this post, the implementation of the network’s governance tool is explained.

The 1inch DAO is a decentralized autonomous organization that governs the 1inch Network, enabling 1INCH token stakers to vote for key protocol parameters and take part in the network’s governance.

The implementation of the 1inch DAO includes two stages, the first of which is currently in progress.

Why was the DAO model chosen for the governance of the 1inch Network? This model has several major advantages:

  • decentralization — there is no central management, governance is controlled by code, decisions are made by voting, and every vote matters;
  • accessibility — a user can join the DAO whenever they want, there are no obstacles to joining;
  • transparency — the 1inch DAO protocol is open-source;
  • trust and confidentiality — autonomous smart contracts and cryptography privacy are used.

During the first phase, the 1inch Foundation distributes the 1INCH tokens to community members through incentivization activities in accordance with a lockup release schedule. The goal of this phase is to build a core community that will implement DAO-based governance in an efficient way.

At this stage, instant governance is available, which is a feature that enables 1INCH token stakers to conveniently participate in, benefit from, and vote for various protocol settings, avoiding lengthy voting periods.

At the second phase, scheduled to start in early 2022, the 1inch Foundation will introduce a full-fledged DAO functionality, providing 1INCH stakers with access to extended governance mechanisms in a bid to completely decentralize the 1inch network that will eventually be owned by the community.

“We are deliberately waiting for about a year before introducing the second phase of DAO governance,” says Sergej Kunz, 1inch Network co-founder. “If we had done it earlier, the DAO would be controlled by a narrow group of individuals. But our aim is true decentralization and we want governance to be totally inclusive.”

“Currently, on Ethereum and Binance Smart Chain combined, more than 87,000 wallets hold 1INCH tokens, plus over 21 mln tokens are held in pools and 42 mln are staked, and these numbers are growing,” he adds. “So, by early 2022, we’ll have enough DAO participants for full-fledged decentralized governance.”

We’ll keep you updated on how the 1inch DAO evolves, just stay tuned!

1inch Network-photo

1inch Network

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