What is 1INCH? A concise guide to the emerging token and the 1inch Network

/Nov 19, 2025

Key Takeaways

• 1INCH is both a governance and utility token within the 1inch Network, enabling users to influence protocol decisions.

• The 1inch Network aggregates liquidity from multiple DEXs to optimize trading costs and execution.

• Recent upgrades include Solana integration and the introduction of Fusion+, enhancing cross-chain swap capabilities.

• Users should prioritize security by using hardware wallets and verifying transaction details before engaging with 1inch dApps.

Introduction 1inch started as a decentralized exchange (DEX) aggregator and has grown into a multi-protocol DeFi suite. Its native token, 1INCH, acts as both a governance and utility token inside the 1inch Network. This article explains what 1INCH is, how the network works, recent product developments, tokenomics and practical steps for securely holding and using the token. (kraken.com)

What is the 1inch Network? At its core, 1inch aggregates liquidity and routing from many decentralized exchanges to find better prices and lower fees for swaps. Instead of manually checking multiple DEXs, the 1inch aggregator splits and routes orders across liquidity sources to optimize execution for users. Over time, the project expanded beyond the aggregator into multiple complementary protocols — including limit orders, MEV-protected routing (Fusion), and cross‑chain swap tooling. (kraken.com)

The 1INCH token: utility and governance 1INCH is an ERC-20 token (and deployed across several chains) designed for governance and on‑chain utility. Key uses include:

Governance: staking 1INCH grants voting power in the 1inch DAO and lets holders influence protocol parameters and upgrades. (1inch.network)
Protocol utility: staked 1INCH and “resolver” roles are used to prioritize swap execution in certain 1inch protocols (for example, Fusion/Fusion+ routing). (1inch.network)

These dual roles mean 1INCH holders can both participate in governance and capture protocol-level utility. (1inch.network)

How 1inch’s main components work (short primer)

Aggregation Protocol: finds optimal paths across DEX liquidity (Uniswap, PancakeSwap, SushiSwap, etc.) and splits trades to minimize cost and slippage. (kraken.com)
Limit Order Protocol: on‑chain limit orders that execute when price conditions are met, useful for traders who prefer conditional execution without custody changes. (messari.io)
Fusion and Fusion+: MEV‑protected routing and cross‑chain swap mechanisms that aim to prevent front‑running and offer cheaper, safer swaps across chains. Fusion+ introduced mechanisms for atomic cross‑chain swaps and improved UX for multi‑chain users. (messari.io)

Recent developments and industry context (2024–2025 highlights) 1inch has actively productized cross‑chain and execution improvements. Notable recent items include Solana integration, the Pathfinder routing upgrade, the Sonic high‑throughput engine, and Fusion+ moving out of beta — all aimed at faster, cheaper, and more secure swaps across an expanding set of chains. These upgrades, together with strategic integrations, have materially changed where and how volume flows across the network (with notable growth on BNB Chain and evolving market share across Base, Arbitrum, and other chains in 2025). (messari.io)

Tokenomics & market snapshot

Supply and market data: 1INCH has a large total and circulating supply (circulating supply commonly reported around ~1.4 billion tokens); live market price and market‑cap figures are best checked on price aggregators because they update in real time. (coingecko.com)
Distribution and incentives: historically, 1inch used airdrops and incentive programs to bootstrap adoption; governance and staking incentives remain a core part of the token’s economic design. (1inch.network)

Security posture and audits 1inch maintains public audits, bug‑bounty programs and ongoing security work across smart contracts and infrastructure. In 2024–2025 the team emphasized vulnerability disclosure and launched a larger bug‑bounty program to strengthen security as the protocol expanded across chains. Nevertheless, users should always consider smart‑contract risk, bridging risk, and counterparty risk when interacting with cross‑chain features. (messari.io)

Risks to consider

Smart‑contract risk: any protocol interaction exposes you to code-level vulnerabilities.
Cross‑chain/bridge risk: bridging or cross‑chain atomic swaps add complexity and potential for new failure modes.
Market & liquidity risk: token price volatility and changing liquidity conditions can affect swaps and limit orders.
Factoring these risks into position sizing and operational security is essential. (messari.io)

How to buy, store and use 1INCH safely

Buying: 1INCH is listed on major centralized exchanges and DEXs; choose platforms you trust and verify contract addresses before swapping. (coingecko.com)
Storing: for long‑term holding, hardware wallets or secure cold‑storage are recommended to keep private keys offline. OneKey hardware wallets provide secure private‑key isolation, a user‑friendly interface for signing transactions, and compatibility with common dApp connection methods — helpful when interacting with 1inch dApps or signing cross‑chain transactions. (If you choose a hardware wallet, follow best practices: keep seeds offline, enable passphrases if supported, and verify addresses on the device.)
Interacting: when using 1inch dApps, verify the URL, review approval scopes carefully (avoid unlimited approvals when possible), and consider using small test transactions before larger swaps. (kraken.com)

Quick checklist before using 1inch dApps

Confirm you are on the official dApp and network. (kraken.com)
Check the contract address for the token you’re swapping. (coingecko.com)
Limit approvals; revoke unused approvals.
Start with a small transaction to confirm routing and gas expectations.
Keep private keys/seed phrases offline in hardware storage.

Conclusion 1INCH is more than a token — it represents participation in an evolving multi‑protocol DeFi network that focuses on optimal execution, MEV protection, limit orders and cross‑chain swaps. The project has moved beyond a pure DEX aggregator into a broader infrastructure player, and its recent product releases (Fusion+, Pathfinder, Solana support, Sonic) reflect that shift. Users who interact with 1inch should balance utility with the usual DeFi risks and use secure custody (for example, hardware wallets like OneKey) for long‑term holdings and high‑value operations. (1inch.network)