The 1INCH is a functional token issued by the 1INCH trading platform. The purpose of the 1INCH is to ensure that the agreement on the aggregator is integrated to maintain a permiscible state, to protect the development ecosystem and to reward governance, and also to staking for network security. 1Inch stresses that 1Inch is not an investment, but a tool to help the platform build a decentralized, permissively licensed network. 1Inch stressed that the 1Inch tokens would not be sold to users, but as a reward for using the 1Inch, and said the system would be a virtuous circle from which users could benefit. 1inch consists of the 1inch.exchange DEX Aggregator as well as the 1inch Liquidity Protocol (which used to be called Mooniswap). 1inch.exchange DEX Aggregator: uses an advanced algorithm to discover the most efficient exchange path by searching over 33 liquidity protocols (as of December 25, 2020) so that traders can get the most efficient trading price. 1inch Liquidity Protocol: An automated market maker (AMM) that uses a new mechanism called "delayed price updates" to protect exchangers from pre-emptive trading, increasing returns for liquidity providers (LPs) and reducing profits for arbitrageurs. The 1INCH token is the native ERC-20 token of the 1inch protocol and is a governance and functional token that will be used to govern all protocols developed by 1inch (starting with 1inch.exchange and 1inch liquidity). 1inch introduces a new governance framework called Instant Governance, in which 1INCH token holders and key protocol stakeholders (e.g. LPs) can vote directly on protocol parameters. One of the key features of Instant Governance is that token holders or LPs can continuously and dynamically vote to change the protocol settings without having to wait for proposals to be submitted or closed.