• 1inch network has commenced the distribution of funds set aside as gas refunds for December and January.
• 1inch users can now migrate from its V1 staking protocol to its staking protocol V2.
• There is a wave of FUD triggered by the SEC’s assault on crypto staking on exchanges causing a bearish outcome in the market.
1INCH Network Commences Distribution of Funds
The 1inch network recently revealed positive news, especially for members of its resolver incentive program. The network has begun distributing funds that were set aside as gas refunds for December and January. Up to 10 million INCH are allocated, with already over 1.5 million being paid out so far. This provides an incentive for stakers to delegate Unicorn Power to resolvers which will benefit from arbitrage trading.
Migration From V1 Protocol to V2
In addition, 1inch confirmed that users can now move from their V1 staking protocol to its new V2 protocol. Refunds associated with this migration will be issued in March, covering fees incurred during the first two months of 2021. These incentives could potentially encourage more participation in the network and more investors joining in the long-term outlook for 1INCH tokens.
Supply Reduction On Exchanges
Exchange outflows have also been observed which is likely due to retail buyers pushing up demand and reducing supply on exchanges significantly over the last few days. The largest amount of token supply is held by addresses holding between 10 million and 100 million tokens who have been selling off over the past two days having a negative impact on market prices.
SEC’s Assault On Crypto Staking
The bearish effect seen recently is mostly attributed to FUD caused by the SEC’s attack against crypto staking on exchanges. This had caused prices for 1INCH token at press time to drop 11% down from $0 .52 previously traded at .
Overall, despite a current pullback in prices due to FUD surrounding crypto staking regulations, it appears that incentives such as these are encouraging long-term investments into 1INCH tokens which could help support price recovery going forward