1INCH is the functional token issued by the 1inch trading platform. The purpose of distributing the 1INCH token is to ensure that protocol integration on the aggregator remains permissionless, protect the development ecosystem, fund governance activities, and be used for staking to secure the network. 1inch emphasizes that 1INCH is not an investment but a tool to help establish a decentralized, permissionless network.
1inch stresses that 1INCH tokens will not be sold to users but instead be rewarded for using 1inch. They indicate that this token system will be a virtuous cycle from which users can benefit.

Project Introduction

1inch consists of the 1inch.exchange DEX aggregator and the 1inch Liquidity Protocol (previously known as Mooniswap).
1inch.exchange DEX Aggregator: Utilizes advanced algorithms to discover the most efficient swap routes by searching over 33 liquidity protocols (as of December 25, 2020), ensuring traders get the most effective trade prices.
1inch Liquidity Protocol: An Automated Market Maker (AMM) that uses a new mechanism called "delayed price updates" to protect swappers from front-running, increase the earnings of liquidity providers (LPs), and reduce the profits of arbitrageurs.
The 1INCH token is the native ERC-20 token of the 1inch protocol, serving as both a governance and utility token. It 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 key stakeholders in the protocol (such as LPs) can directly vote on protocol parameters.
A key feature 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.