It is about to rain tokens for the users of 1inch. 1inch Foundation, the non-profit arm of the decentralized exchange aggregator, has announced its plans to distribute 10 million 1inch tokens as a refund for gas costs of those who stake the tokens.
It announced that the distribution would start in September. With the token valued at around $3 each, 1inch will be distributing around $30 million in the coming months. The 10 million tokens will be distributed over time as a monthly refund for users that stake the token between the first swap in a month and the day of distribution.
As always, there are terms and conditions to benefit from this distribution. For example, while every user will get a refund, only those who staked at least 100,000 1inch tokens will receive a full refund on the gas fees they spent. In addition, for anyone to get a 25% refund of the gas fee, they must have spent at least 100 tokens on transactions.
The 10 million 1inch tokens will be distributed monthly to those that meet the conditions until all the tokens are distributed. According to the foundation, community members proposed the gas refund and distribution idea through the 1inch governance forum. However, the foundation only fine-tuned it.
1inch is a decentralized exchange (DEX) aggregator. It scouts several decentralized exchanges to get the best rates. Then, it reroutes users’ trade between the DEXs so they can get the best prices. The platform was formed by Anton Bukov and Sergej Kunz in 2019, and it launched its token in 2020. The exchange has a daily volume of around $250 million.
This gas refund distribution can further encourage more people to use the platform while also rewarding loyal members. Distributing tokens is not a new thing for 1inch. It did so before in December 2020 after launching its token. 90 million tokens were distributed through an airdrop to its users who traded on the exchange before then. If you traded on the 1inch exchange before December 24, 2020, you could still claim 1inch tokens. Using Mooniswap, a 1inch liquidity protocol also gives you the chance to claim free tokens.
In 2021, it also has another airdrop where it distributed 15 million tokens to commemorate the Chinese New Year. The eligibility criteria for this airdrop were the same as that of the first one, showing a 1inch commitment to its early users. With its established track record of token distribution, this one does not come as a surprise and is highly welcome.
Other Developments at 1inch
The 1inch Foundation also recently launched a $3 million grant for DeFi developers. This fund is set aside to fund updates to the protocol. The grant will be for 12 months, during which projects focused on community development, research analytics, and network development will get grants to onboard on the 1inch network. The decentralized storage and hosting platform, DeNet won the first grant and got $100,000.
This is perhaps part of the DEX aggregator’s plans to rebrand its entire network to expand. 1inch network has grown significantly since it started. From being an aggregation protocol, it has created a network of protocols that include aggregation, liquidity, instant governance, and the 1inch token. It has also expanded its network outside of Ethereum as it deployed on Binance Smart Chain in March 2021.
1inch is also planning to launch a stablecoin pegged to the US dollar. It announced this about a month ago, stating that it will use the ICHI Decentralized Money Authority to create the stablecoin. The coin will be backed by a 1inch token and USDC, with 80% of the collateral tied to USDC.
In conclusion, 1inch is known for multiple airdrops and coin distribution. While there are guidelines for its gas refund token distribution, it gives late adopters the chance to benefit from the several distributions.