The move will facilitate active community participation in improving 1inch protocols by establishing a straightforward and transparent process for considering and adopting proposals.
The DeFi is built by the entire community, not by individual projects. And the 1inch Foundation has always acknowledged that the involvement of developers and regular users in improving protocols is vital.
Back in December 2020, the 1inch instant governance was launched, enabling 1INCH token stakers to vote for protocol parameters. For more information about instant governance, see this post.
Now it is time to take it up a notch, complementing instant governance with the 1inch Network Governance, a system similar to that of many other leading Ethereum-based projects.
The 1inch Network Governance will offer a clear and user-friendly process for proposing protocol improvements and voting for them. Unlike instant governance, which is focused on protocol parameters, the 1inch Network Governance will be focused on major improvements that would make a difference for the entire 1inch ecosystem and, possibly, for the DeFi space at large.
How it works
To participate in the 1inch Network Governance, go to the DAO category of the 1inch Forum and select one of the subcategories for your proposal – Aggregation Protocol, Liquidity Protocol, Limit Order Protocol or General proposals. The proposal process consists of three stages.
Stage 1. Discussion
At this stage, a user makes a post describing their proposal in detail, with the tag “stage-1”. Subsequently, community members engage in discussing the proposal. Valuable feedback from the community will help users to streamline their proposals, increasing chances of adoption. There is no timeline or specific requirements at this stage.
Stage 2. Formalization
At stage 2, proposals are formally submitted using the 1inch Improvement Proposal (1IP) template. Tag your proposal with “stage-2” and use the prefix “[1IP-#]” in the title (replace # with the lowest available proposal number). Each section of the proposal template should be completed and the poll should be set to 5 days.
Subsequently, users will speak out for or against the proposal. To progress to stage 3, the majority of votes within a 5-day period should be in favor of the proposal.
Stage 3. Snapshot
At the snapshot stage, off-chain voting for the proposal will be facilitated. Unlike instant governance, which is available only to 1INCH stakers, all users holding 1INCH tokens on Ethereum or Binance Smart Chain (BSC), including those who have staked their tokens, can participate in voting.
Once a proposal has received approval at stage 2, the author changes the tag to “stage-3”, and a 7-day vote period starts. Proposers are responsible for making snapshot polls. For a proposal to be adopted, it needs to collect 4 mln 1INCH tokens in votes.
Now that you’ve read about the 1inch Network Governance process, go ahead and submit your proposal. Let’s build the DeFi future together!