[1IP-68] Deprecate v1INCH Voting Power & Standardize Unicorn Power Calculation

2.1 General Proposals
1

Simple Summary

  • Remove v1INCH voting power from governance
  • Standardize voting power calculation to only use Unicorn Power from staked 1INCH (st1INCH)
  • Update governance documentation and Snapshot space strategies
  • Update the reality.eth DAO Proposal acceptance criteria

Abstract

This proposal aims to streamline 1inch DAO’s governance by deprecating v1INCH voting power and standardizing voting weight calculations to exclusively use Unicorn Power (UP) generated from staked 1INCH. This change creates consistency between DAO voting and Fusion mode resolver delegation mechanisms while ensuring all participants operate under uniform rules.

Motivation

Current governance allows v1INCH holders to participate in voting with diminishing power over time. Several factors necessitate changing this approach:

  • Original token distribution vesting schedules are largely complete

    • Most early investors are fully vested
    • Core team member vesting is near completion
    • Remaining v1INCH voting power is minimal and rapidly decaying

  • Inconsistent voting mechanisms create unnecessary complexity

    • Different power calculation methods between voting and resolver delegation
    • Varying rules between v1INCH and st1INCH holders

  • Equity in governance participation

    • All participants should operate under same staking requirements
    • Promotes active participation through intentional token locking
    • Aligns voting rights with demonstrated protocol commitment

Specification

Governance Updates Required

  1. Remove v1INCH voting and delegation strategies from:

  2. Update both Snapshot space configurations to:

    • Use only st1INCH balance for voting power calculation
    • Remove v1INCH strategy entirely

  3. Update governance documentation at https://gov.1inch.community/docs/governance to reflect:

    • Removal of v1INCH voting capabilities
    • Standardization on UP-based voting weight between Fusion mode and DAO voting

  4. Update the 1inch Network DAO Proposal Acceptance Criteria currently at https://ipfs.io/ipfs/QmQHLJ6utJJNr82bthtw6pNjKpZsfnvZDENeHMAxtQidXz to reflect:

    • The removal of v1INCH voting capabilities
    • Reference this proposal
    • Pin this file to an IPFS node

  5. Update the 1inch.eth ENS domain Records at https://ipfs.io/ipfs/QmQHLJ6utJJNr82bthtw6pNjKpZsfnvZDENeHMAxtQidXz:

    • daorequirements category should reference the newly pinned IPFS file for the new 1inch DAO Proposal Acceptance criteria

Rationale

The proposed changes streamline governance by:

  • Creating unified voting mechanism

    • Same rules for all participants
    • Consistent with Fusion mode delegation
    • Simpler to understand and implement

  • Encouraging active participation

    • Requires intentional staking
    • Aligns voting power with protocol commitment
    • Removes passive voting rights

Considerations

Security Implications

  • No direct security risks as voting power calculation remains on-chain, but this change should still be tested in the Snapshot testspace to ensure that both voting and delegation are functioning as intended
  • Simpler voting rules means fewer potential vulnerabilities
  • Historical votes remain valid and immutable

Governance Implications

  1. Staking Requirements are the unchanged

    • All voters must explicitly stake 1INCH
    • Minimum 1-month lock period applies
    • Maximum 2-year lock period retained

  2. Treasury Impact

    • No direct cost to implement

  3. Voting Process

    • Quorum remain unchanged at 10M UP
    • Minimum voting power requirements maintained at 100,000k UP
1 Like