1inch

Overview

In May 2023, 1inch DAO launched the Recognized Delegates Program (RDP) to improve governance, attract top delegates, and cut costs. Co-authored by StableLab and DAOplomats, it introduced structured incentives to retain delegates and encourage new participants.

After a successful pilot, it was renewed in March 2024 with a tiered rewards model to boost participation and decentralization.

Compensation Structure & Eligibility

Initial Pilot (May 2023 – Nov 2023)

• Budget: $50,000 USDC for 6 months.

• Compensation: $4,000 USDC/month per delegate.

• Eligibility:

  • Minimum 500,000 1INCH voting weight required.

  • Minimum 80% voting participation.

  • Delegates must publicly communicate their governance decisions and rationales.

Renewed Program (March 2024 – March 2025)

• Budget: $100,000 USDC for 12 months.

• Tiered Compensation Model:

  • Tier 3: $4,000/month – Highly active, top-tier governance delegates (StableLab, DAOplomats).

  • Tier 2: $500/month – Active mid-sized delegates.

  • Tier 1: $100/month – New and smaller delegates.

• Expanded eligibility:

  • Introduced lower delegation thresholds to allow smaller delegates to participate.

  • Michigan Blockchain, FranklinDAO, and Curia were included in the program with a path to promotion upon reaching the required delegation weight.

Governance & Oversight

• DAOplomats and StableLab continue as Tier 3 Recognized Delegates, setting governance standards.

• The tiered model ensures fairer distribution of incentives and prevents concentration of power.

• The DAO has committed to reviewing governance speed and delegate retention to maintain engagement.

Implementation Plan & Timeline

• Q2 2023 – 1IP #29: Recognized Delegates Program passed a Snapshot vote.

• Q2 – Q4 2023 – Pilot phase with StableLab and DAOplomats compensated for governance contributions.

• Q1 2024 – 1IP #54: Renewal Proposal approved, extending the program for 12 months with a $100,000 USDC budget.

• Q1 2024 – Q1 2025 – Ongoing monthly evaluations, tiered delegate structure, and program refinements.

Key Takeaways

• 1inch DAO successfully implemented structured delegate incentives, aligning with DAOs like Aave & Compound.

• The program expanded in 2024, introducing a tiered system to encourage broader participation.

• By enforcing voting and communication standards, 1inch DAO significantly increased governance efficiency and participation.

• The Recognized Delegates Program has strengthened decentralization, setting a model for future governance incentives.

Further Resources

• Guide: How to delegate or revoke your voting power for 1inch governance