Team members at 1inch, the Ethereum-based crypto exchange aggregator, are weighing a change to its governance system that proponents say would weaken the voting power of insiders and give the broader community of token holders more sway.
In a community call on Friday that CoinDesk attended, Jordan Reindl, a member of 1inch’s community and governance team, proposed the protocol dilute the voting power of insiders who have received their full allotment of v1inch vesting tokens, a derivative token redeemable for 1inch. Conversely, v1inch tokens that remain locked up for two years or longer would have 100% of their voting weight, the proposal said.
The current system “kind of gives investors a disproportionately large amount of voting power, especially if their v1inch token contract is fully vested,” Reindl said on the call.
The proposed changes would treat v1inch “exactly like” the protocol’s staked tokens (st1inch) for voting purposes, Reindl said. The outcome would grant general community members greater sway in governance proposal votes. It has not yet gone to a vote.
Recommended for you:
- Crypto Exchange Bittrex To Wind Down U.S. Operations Next Month
- Why NFTs Are So Appealing – And How Anyone Can Start Learning for Free
- Germany and U.S. Seize Over $46M Crypto Tied to ChipMixer Investigation
- Join the Most Important Conversation in Crypto and Web3 in Austin, Texas April 26-28
1inch’s governance token was trading at 56 cents at press time Friday, having slid just under 2% in the past 24 hours.