Proposed Governance Restructuring for 1inch May Lower Voting Weight of Internal Personnel

According to reports, 1inch, a crypto transaction aggregator, held a community teleconference on Friday. Team members proposed to weaken the voting weight of some internal personnel. The proposed governance restructuring would significantly reduce the voting rights accumulated by core contributors, investors, and other insiders. Jordan Reindl, a member of the 1inch community and governance team, said that the current system “to some extent grants investors a disproportionate amount of voting rights, especially when their v1inch token contract is fully locked up.” The proposal has not yet been voted on. The v1inch token is a redeemable derivative token of 1inch.

Members of the 1 inch governance team propose to weaken the voting rights of some internal personnel

Introduction

Recently, 1inch, a well-known crypto transaction aggregator, held a community teleconference to discuss a proposed governance restructuring. The main objective of the proposal is to lower the voting weight of some internal personnel. As per reports, the new system would significantly reduce the voting rights accumulated by core contributors, investors, and other insiders. In this article, we will explore the details of the proposed restructuring, its implications, and the feedback from the community.

What is 1inch?

1inch is a well-known decentralized transaction aggregator that provides competitive prices across decentralized exchanges. It comprises a network of liquidity pools, smart contract-based protocols and decentralized exchanges, pegasus, chi gas token, and many more. Its governance system is based on the v1inch token, which was released in December 2020.

Proposed Governance Restructuring

Team members of 1inch’s community proposed a governance restructuring that would alter the voting rights of various internal personnel. The main aim of the proposal is to decrease the voting weight of the v1inch tokens held in a locked-up contract. Jordan Reindl, who is a member of the 1inch community and governance team, stated that the current system grants investors a disproportionate amount of voting rights. However, under the new system, the voting power of locked-up tokens would decrease, leading to a more equitable distribution of influence across the 1inch community.

Implications of Restructuring

If the proposed governance restructuring is implemented, it could have substantial implications for the 1inch community. Firstly, the restructuring could shift the balance of power away from investors and core contributors, leading to greater decentralization. On the other hand, the proposed changes may reduce the incentives for investors to participate in the 1inch ecosystem. However, considering the current governance structure’s flaws, it could lead to further community participation and reduce the risk of centralization in the long run.

Feedback from the Community

There are mixed reactions from the community regarding the proposed restructuring. Some believe that the restructuring will lead to a more democratic system, lessening the power concentration within a small group of people. Others believe that the proposed changes may reduce the incentives for investors to participate in the 1inch ecosystem, leading to less engagement from the community. However, during the teleconference, most of the community participants remained optimistic and open to a new, more inclusive governance structure.

Conclusion

In conclusion, the proposed restructuring of the 1inch governance system has attracted attention from the crypto industry, with many keeping an eye on how the situation ultimately plays out. The proposed changes could shift the balance of power and lead to greater decentralization, which could be beneficial in the long run. However, it remains uncertain how these changes will affect the community and its willingness to participate in the future. Nevertheless, it is refreshing to see a community actively reflect on its governance structure, with the potential to implement a more equitable system.

FAQs

1. What is 1inch?
1inch is a well-known decentralized transaction aggregator that provides competitive prices across decentralized exchanges, including Ethereum, Binance Smart Chain, and others.
2. What is the v1inch token?
The v1inch token is a redeemable derivative token of 1inch, which facilitates the governance of the 1inch network.
3. How would the proposed governance restructuring affect the 1inch community?
The restructuring could lead to greater decentralization and a more equitable distribution of power. Nevertheless, it is unclear how the 1inch community will react to these changes, and investor participation may decrease due to a potentially reduced incentive structure.