1inch Network (1INCH): 6 Must-Know Facts

A deep dive into the leading DEX aggregator, its governance-driven evolution, and its push to dominate the multi-chain DeFi landscape.

I. Project Overview

The 1inch Network is a decentralized finance (DeFi) powerhouse that acts as a comprehensive aggregator of decentralized exchanges (DEXs). Launched in 2019 by co-founders Sergej Kunz and Anton Bukov, its primary mission is to provide users with the best possible rates for their cryptocurrency swaps. By splitting trades across multiple liquidity sources on various blockchains, the network’s proprietary Pathfinder algorithm minimizes slippage and reduces transaction costs for users.

At its core, the 1inch Network is a suite of protocols designed to optimize DeFi operations. Key components include the 1inch Aggregation Protocol, which ensures efficient trade routing, and the 1inch Liquidity Protocol, a next-generation automated market maker (AMM) that protects users from front-running attacks. The entire ecosystem is designed to be non-custodial, meaning users maintain control of their private keys and assets at all times.

Governance is managed by the 1inch DAO, a decentralized autonomous organization that empowers holders of the 1INCH token to vote on key protocol parameters and strategic decisions. Development and growth are fostered by the 1inch Foundation, a non-profit organization that issued the token and incentivizes contributions, and 1inch Labs, which focuses on building the open-source protocols.

II. Token Metrics

The 1INCH token has experienced the volatility characteristic of the broader DeFi sector. Its market performance reflects the ongoing competition among DEXs and aggregators, as well as the network’s continuous development and expansion across multiple blockchains.

Data is as of the date of this report and is subject to market fluctuations. Sources include Kraken and Binance.

III. Token Economics

The tokenomics of the 1inch Network were structured to support long-term growth and decentralization. The total supply is capped at 1.5 billion 1INCH tokens, a limit that was permanently set when the 1inch Foundation burned the token’s minting function in April 2022.

Token Distribution

The initial distribution of the 1.5 billion tokens was allocated to key stakeholders to ensure the network’s security, growth, and progressive decentralization.

(Source: 1inch Network Blog)

Vesting Schedule

A critical aspect of the token’s release was its 4-year vesting schedule, which began with the token launch on December 25, 2020. This schedule was designed to align the long-term interests of the team, investors, and the community by preventing a large, immediate influx of tokens into the market.

The completion of this four-year vesting schedule in December 2024 marked a significant milestone for the 1inch token. It signifies that all initially allocated tokens to the team, advisors, and investors have been fully unlocked. This transition moves the token into a phase of full circulation, where supply dynamics are primarily influenced by ongoing community incentive programs and DAO treasury management rather than scheduled unlocks.

IV. Technical Features and Development Status

The 1inch Network continuously evolves, deploying new features and expanding its multi-chain presence to maintain its competitive edge. Its technology is focused on delivering superior execution for traders and robust tools for developers.

• Pathfinder Algorithm: The heart of the 1inch Network is its complex routing algorithm, Pathfinder. It searches for the most efficient swap paths across hundreds of liquidity sources on multiple blockchains, including DEXs, liquidity protocols, and private market makers. A major update in June 2025 delivered up to 6.5% better swap rates compared to its predecessor.
• Multi-Chain Support: 1inch is a leader in cross-chain aggregation, supporting dozens of blockchains, including Ethereum, BNB Chain, Polygon, Arbitrum, and, most recently, Solana. This allows users to tap into a vast sea of liquidity from a single interface.
• 1inch Fusion: This feature provides users with gasless, MEV (Maximal Extractable Value)-protected swaps. Instead of paying gas directly, users can make swaps by having professional resolvers fill their orders, who then cover the gas fees. This model enhances security and can lower costs for users.
• DAO-Driven Development: The network’s roadmap is increasingly influenced by its DAO. In a significant move in June 2025, the DAO voted to deprecate support for the Fantom, Kaia, and Aurora networks due to low volume and high operational costs, demonstrating a focus on capital efficiency.

Recent developments in 2025 have centered on expanding to high-growth ecosystems like Solana and enhancing core technology. The launch of Solana swaps directly within the 1inch Wallet in June 2025 was a major step in this direction, connecting the network to one of DeFi’s most active communities.

V. Market Analysis

The 1inch Network operates in the highly competitive DeFi aggregator space. Its primary competitors include other aggregators like Matcha (from 0x), ParaSwap, and Rubic, as well as the native swapping functionalities offered by major wallets and DEXs.

Unique Selling Propositions

• Deep Liquidity & Superior Rates: 1inch’s core value proposition remains its ability to source deep liquidity and provide some of the best possible swap rates through its advanced Pathfinder algorithm.
• Comprehensive Multi-Chain Strategy: By aggressively expanding to numerous blockchains, including non-EVM chains like Solana, 1inch casts a wider net for users and liquidity than many of its competitors.
• Security and User Protection: Features like 1inch Fusion offer protection against common DeFi risks like front-running and sandwich attacks, appealing to security-conscious traders.
• Established Brand and Trust: As one of the earliest and most well-known DEX aggregators, the 1inch Network has built a strong brand and a reputation for reliability and innovation within the DeFi community.

The future outlook for 1INCH depends on its ability to continue innovating, attract volume from new and existing chains, and effectively govern its ecosystem through the DAO. The recent focus on trimming underperforming integrations suggests a mature, data-driven approach to its growth strategy.

VI. Community and Partnerships

A strong and active community, centered around the 1inch DAO, is vital to the network’s long-term success. The DAO provides a framework for token holders to propose and vote on key changes, from technical upgrades to treasury management.

Recent Community Activities

• DAO Governance: The 1inch DAO is highly active. A recent key proposal (1IP-80) in June 2025 involved compensating users for a 2024 frontend exploit, showcasing the DAO’s ability to address legacy issues and protect its user base, albeit with stringent verification requirements.
• Deprecation of Chains: The decision to discontinue support for Fantom, Kaia, and Aurora was a community-driven process, reflecting a strategic shift to focus resources on more promising and active networks.
• Bug Bounty Program: In June 2025, 1inch launched a comprehensive bug bounty program with rewards up to $500,000, inviting ethical hackers to help secure the platform and demonstrating a commitment to user safety.

Strategic Partnerships

While specific new large-scale partnerships in 2025 are less prominent than technical integrations, the network’s strategy revolves around integrating with emerging, high-volume blockchains. The expansion to Solana is the most significant recent “partnership,” connecting 1inch to the vast ecosystem of tokens and users on that platform. This integration-as-partnership model is key to its growth.

VII. Summary

The 1inch Network has solidified its position as a cornerstone of the decentralized finance landscape. Its sophisticated Pathfinder algorithm and commitment to multi-chain aggregation provide a clear and compelling value proposition for users seeking optimal trade execution. The completion of its four-year token vesting schedule in late 2024 marked a pivotal transition towards a fully circulating supply, placing greater emphasis on the DAO’s ability to manage its treasury and incentivize growth.

Recent strategic decisions, such as integrating Solana while deprecating less active chains, demonstrate a mature, data-driven approach to expansion. While facing stiff competition, the 1inch Network‘s established brand, advanced security features like 1inch Fusion, and a highly engaged DAO position it well for future challenges. The continued innovation of its core technology and its ability to capture liquidity from the most active DeFi ecosystems will be critical for the long-term success and value accrual of the 1INCH token.