[1RC] Transfer Of Control Of The 1inch dApp To 1inch/ Degensoft Group; Domain Separation And Brand Alignment

2.1 General Proposals
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Simple Summary

This proposal transfers the independent control of the 1inch dApp to 1inch/ Degensoft Group and formalizes domain separation across the ecosystem. The DAO continues as the governance hub at 1inch.network, and the 1inch Foundation remains the DAO’s off-chain representative. The dApp will continue operation at 1inch.com under 1inch/ Degensoft Group. The dApp remains within the broader 1inch ecosystem and brand, but ownership and decision-making for the dApp are vested in 1inch/ Degensoft Group.

In parallel, this proposal authorizes a coordinated product and website update to align with the new structure, clearly signal the distinct roles of the 1inch DAO, 1inch Foundation, and 1inch/ Degensoft Group, and empower 1inch Labs to update the design of the 1INCH icon, 1inch.network domain and its community-facing content for the integrity of the ecosystem.

Abstract

Since its launch, the 1inch dApp has been the entry point to the 1inch Network — powering billions in trading volume, onboarding millions of users, and establishing itself as one of the most trusted DeFi interfaces in the world.

The success of the dApp, however, has also revealed the realities of running large-scale, user-facing infrastructure. It demands constant engineering investment, security monitoring, and risk management considerations. These functions, by their nature, require accountability and continuous delivery — responsibilities that the 1inch Foundation and 1inch DAO, in its current form, cannot yet assume.

This proposal, therefore, recommends structured shifts within the 1inch ecosystem:

  • 1inch/ Degensoft Group becomes the owner of the 1inch dApp and operates it independently at 1inch.com.
  • 1inch DAO retains stewardship of governance, staking, open-source protocols, and community-led activities at 1inch.network.
  • 1inch Foundation continues as an ecosystem steward and the DAO’s off-chain representative.

This change clarifies responsibilities, strengthens sustainability, and allows both decentralization and operational excellence to thrive side by side.

Concurrently, we will will update the 1INCH icon and the 1inch.network page.

Motivation

The 1inch dApp became the gateway to the original vision of 1inch Network products — an intuitive interface providing access to liquidity across chains, powered by open-source tech governed by the community.

From hackathon project to global infrastructure, the dApp proved that decentralized access can scale. With scale, complexity followed. Running a global, user-facing service is not a resistant endeavor. It requires:

  • permanent investment in backend infrastructure and frontend development,
  • continuous monitoring for performance and exploits,
  • integration of security providers and risk management tools,
  • around-the-clock operational support.

These are not “nice to haves” — they are non-negotiable. The 1inch Foundation and 1inch DAO, despite its critical role in governance, has never directly maintained this infrastructure and does not currently possess the operational prerequisites for a global service: 24/7 on-call coverage, service-level ownership (SLOs), incident-command authority, vendor and data-processing agreements, as well as the ongoing product and UX iteration, coordinated security management and partner operations that keep a product healthy at scale.

Concentrating independent management in a single accountable operator closes this gap, reduces coordination overhead, and enables fast, transparent decision-making when reliability or user safety is at stake. Importantly, this ownership centralization does not compromise decentralization: the protocols remain open-source and DAO-governed, and the dApp remains a non-custodial interface where users retain full control over their keys and on-chain interactions.

Visual alignment. The 1inch brand remains one and the same. This proposal triggers a coordinated update to reflect the new structure and to ensure integrity of branding within the 1inch ecosystem. Updating the 1INCH icon and 1inch.network page will align all layers (1inch.com/ 1inch.io, 1inch.network) and third-party placements (integrators) to a single standard, making the ecosystem’s coherence self-evident.

Why Now?

The recent debate around DAO sustainability sharpened this issue. Calls for redirecting all revenue to the DAO raised valid concerns about long-term independence, but also exposed the gap between ideals and current capacity. Sustainability begins with capability. Without technical accountability and operational processes, treasury accumulation alone cannot secure the future.

This proposal offers a balanced path forward: ownership and operational responsibility for the dApp lie with those able to deliver, while the DAO strengthens its role as governance steward of open-source protocols and token utility.

Specification

Transfer of Control

  • Subject Of Transfer: The 1inch dApp (user interface and associated application assets).
  • New Manager: 1inch/ Degensoft Group becomes the independent owner of the dApp and exercises full control over product and operational decisions.
  • Scope: The transfer encompasses the dApp codebase and associated application and operational assets necessary to run the dApp in production.
  • Effective Date: Upon passage of this 1IP and completion of the transfer documentation by 1inch Foundation.

Domain Separation

  • 1inch.network — community and governance hub (DAO), which hosts governance, proposals, voting, staking, delegation, resolver onboarding, and protocol documentation. The domain ownership shall be placed with 1inch Foundation.
  • 1inch.com — home of the 1inch dApp (1inch/ Degensoft Group).
  • 1inch.io — temporary traffic proxy**,** used as a routing layer to maintain continuity and discoverability while directing users to the correct surfaces.

Visual Actions

  • Token icon: authorize updating the 1INCH token icon;
  • 1inch.network: authorize the update of the 1inch.network site to reflect its role as the DAO/governance hub (governance, staking, delegation, resolvers, docs) in line with the ecosystem branding;
  • Implementation authority: empower 1inch Labs to lead the project;
  • Design alignment: ensure consistent typography, color, iconography, and component guidelines across all layers of the 1inch Network.

Governance and Ecosystem continuity

  • The DAO retains authority over 1INCH token, governance, staking, delegation, open-source protocols, and Resolver onboarding and management at 1inch.network.
  • The 1inch Foundation remains the DAO’s off-chain representative and ecosystem steward, unless the DAO votes otherwise.
  • The dApp continues operation under the 1inch brand and remains part of the broader 1inch ecosystem.
  • DAO will update 1inch DAO Guidelines to reflect respective changes.
  • This alignment clarifies control and decision-making while preserving a unified user understanding of the 1inch Network.

Rationale and Considerations

This structure reflects lessons learned since inception:

  • Align responsibilities with capabilities — the DAO governs, the Foundation fosters, and 1inch/ Degensoft Group owns and controls the dApp.
  • Preserve decentralization and user control — protocols remain open-source and DAO-governed; the dApp remains a non-custodial interface where users control their keys and on-chain interactions.
  • Secure operational excellence — a single accountable owner enables 24/7 on-call, incident command and coordinated product/UX iteration, reducing coordination overhead and accelerating clear decision-making.
  • Governance clarity and accountability — the DAO’s authority over governance mechanisms, token utility, and protocol stewardship remains intact; the Foundation continues as the DAO’s off-chain representative unless changed by vote.
  • Design coherence and integrity — a unified design preserves brand integrity.

Conclusion

The 1inch Network has always been a story of innovation and community. The dApp made that story tangible for millions of users; the DAO made it participatory; the Foundation made it sustainable; and 1inch Labs engineered it into existence. This proposal evolves that story by transferring control of the dApp to a new 1inch/ Degensoft Group under independent control, while reaffirming the DAO’s authority over governance and protocols at 1inch.network.

The result is a stronger, clearer, and more sustainable 1inch ecosystem — true to its founding values, and adapted to the realities of scale.

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Thank you for providing this updated direction.

We understand the impetus for an official transition of dapp control to the Degensoft Group. This type of strategic decision has occurred in other ecosystems, with salient separation between the usual “Labs” or engineering team, Foundation, and DAO. Such is the case with Uniswap, Avara, etc. Separation of responsibilities and control makes sense.

However, the question around fees and revenues remains, along with uncertainty around the Degensoft Group’s intentions with the DAO’s remaining treasury. Does Degensoft intend to fund future operations, like the recent request pertaining to audits, via the DAO treasury, or will this be handled internally since fees will in perpetuity belong to Degensoft? Has there been further consideration given to the Financial Revitalization proposal (https://gov.1inch.io/discussion/1282980) around fee sharing? What precisely does it mean when it is stated that the DAO “retains authority over…open-source protocols?” Does this in any way include input on Fusion surplus fees and limit order taker fees as mentioned in the Revitalization proposal? Or does open-source solely pertain to initiatives like the alternative 1inch interface that are incepted by the DAO (https://snapshot.box/#/s:1inch.eth/proposal/0x0199b65d69b78042f37e1f53d8eb36ede1eb37f722a9b93742f913febae90642)?

1 Like
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1/2 Thank you for these thoughtful questions, we really appreciate the feedback.

Regarding Degensoft Group and Treasury Funding:
The transfer of dApp control establishes clear operational responsibility with Degensoft Group. To ensure transparency and accountability in any future interactions with the DAO Treasury, we are developing strict guidelines for how funding proposals would be structured and evaluated. These guidelines will prioritize long-term sustainability and clear accountability frameworks, ensuring any proposals align with the DAO’s strategic objectives while maintaining the operational independence that this transition establishes.

On Fee Sharing:
There are no current plans for fee sharing arrangements between Degensoft Group and the DAO Treasury. The dApp will operate as an independent entity within the broader 1inch ecosystem, with its own revenue model and operational sustainability framework.

This separation provides clarity on financial flows and decision-making authority. Without overlapping revenue streams or shared fee structures, operational decisions about the dApp (such as feature development, user experience improvements, or technical infrastructure choices) can be made independently and efficiently by Degensoft Group, while DAO governance can focus on protocol-level decisions, treasury management, and community initiatives without needing to consider the operational implications for dApp revenue streams.

This clear delineation prevents scenarios where DAO governance decisions might inadvertently impact dApp operations, or where dApp operational needs might influence DAO treasury allocation decisions. Each entity can optimize for its respective responsibilities — Degensoft Group for user experience and operational excellence, and the DAO for protocol governance and community stewardship — without financial interdependencies that could create competing priorities or decision-making bottlenecks

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Regarding “Authority Over Open-Source Protocols”:
When we reference the DAO’s retained authority over open-source protocols, this pertains to the core protocol layer that enables the entire 1inch Network ecosystem. These protocols remain open-source and DAO-governed, meaning they can be utilized by any interface, product, or service—including the Degensoft-operated dApp, community-built alternatives, third-party integrations, or future DAO-sponsored initiatives.

The DAO’s protocol authority includes governance over core mechanisms like staking, delegation, resolver onboarding, and the foundational smart contracts that power 1inch’s functionality. This does not extend to specific implementation decisions within individual products or UIs that utilize these protocols, such as how fees are structured within particular interfaces.

This structure preserves decentralization at the protocol level while enabling operational excellence at the product level—ensuring both innovation and accountability can thrive within their appropriate domains.