1INCH is a functional token issued by the 1inch trading platform. The purpose of the platform to issue the token 1INCH is to ensure that the protocol integration on the aggregator maintains a permissionless state, protect the development ecosystem and reward funds for governance behaviors. Will be used for staking for network security. 1inch emphasized that 1INCH is not an investment, but a tool that can help the platform build a decentralized, permissionless network.
1inch emphasizes that 1INCH tokens will not be sold to users, but as a reward for using 1inch, and that the token system will be a virtuous circle, and users will benefit from it.

Project Introduction

1inch consists of the 1inch.exchange DEX aggregator and the 1inch liquidity protocol (formerly known as Mooniswap).
1inch.exchange DEX aggregator: Using advanced algorithms, by searching more than 33 liquidity agreements (as of December 25, 2020), to find the most effective exchange path, so that traders can obtain the most efficient Trading price.
1inch Liquidity Protocol: An automated market maker (AMM) that utilizes a new mechanism called "delayed price updates" to protect exchangers from front-running, increasing liquidity providers' (LP) yield and reduce the profit of the arbitrageur.
The 1INCH token is the native ERC-20 token of the 1inch protocol. It is a governance and utility token that will be used to govern all protocols developed by 1inch (starting with 1inch.exchange and 1inch liquidity).
1inch introduces a new governance framework called Instant Governance, where 1INCH token holders and protocol key stakeholders (such as LPs) can directly vote on protocol parameters.
One of the key features of Instant Governance is that token stakers or LPs can continuously and dynamically vote to change protocol settings without having to wait for proposals to be submitted or concluded.