- 1inch Foundation is launching the final stage of its instant governance upgrade.
- 1inch Network Governance will help streamline the protocol’s proposal process.
- Also, the upgrade will enable community voting.
1inch Foundation is launching the 1inch Network Governance as part of its governance upgrade. The upgrade enables active community participation especially regarding decision-making for the protocol. As a result, 1inch protocols will be more efficient and transparent when considering and adopting proposals.
Notably, the 1inch Network Governance completes the governance project. The 1inch Network Governance focuses on major improvements that affect the 1inch ecosystem as a whole. On the other hand, instant governance focused on protocol parameters.
Of note, the 1inch Network Governance includes a user-friendly process for proposing protocol improvements. In fact, the system is similar to most Ethereum-based projects. Also, the upgrade gives 1inch stakers voting power on proposed protocol changes.
The proposal process is easy. To participate in network governance users need to access the 1inch Forum DAO category. There are several proposal subcategories, for example, Aggregation Protocol, Liquidity Protocol, Limit Order Protocol, or General proposals. As such, users need to select the category that best suits their proposal.
In addition, the proposal process takes three stages to complete. The first stage is the Discussion stage where users describe their proposals. At this stage, the community also offers feedback to help optimize the proposal.
The next stage is Formalization where proposals are formally submitted. All submissions are done using the 1inch Improvement Proposal (1IP) template. This stage is also where on-chain voting takes place over a period of about 5 days.
The final stage is the Snapshot phase where off-chain voting takes place provided the majority of votes over the second stage are positive. In fact, all 1inch token holders can participate in the Snapchat stage, not just stakers.
Speaking on the upgrade the Foundation noted,
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.
1inch Foundation is a non-profit that is part of the 1inch Network. In turn, 1inch Network is a top decentralized exchange (DEX) aggregator. As a DEX the governance upgrade could impact the wider decentralized finance (DeFi) space.