[1IP-85]Enhancing 1inch Risk Management in Regulatory Engagement and Contribution

Proposal: Enhancing 1inch Risk Management in Regulatory Engagement and Contribution

Simple Summary

This proposal seeks the 1inch Network DAO's approval for an budget allocation of $110,000.00 to enable 1inch Foundation to support a global strategic initiative aimed at significantly enhancing the visibility and influence of the 1inch brand and risk management among regulators, policymakers, institutional stakeholders, and academic circles.

By supporting regulatory engagement, risk management education, and advocacy efforts, the initiative will reinforce 1inch’s position as a leading DeFi protocol and a proactive contributor to regulatory discourse, and thought leadership in DeFi regulations and risk management.

Rationale and Objectives

As regulatory interest in DeFi continues to accelerate globally, it is critical for protocols like 1inch to engage proactively with policy-makers, institutional actors, and advocacy networks. Regulatory clarity and institutional alignment will increasingly define the growth trajectory and long-term viability of the DeFi ecosystem.

1inch has consistently demonstrated a strong commitment to risk management, with a growing track record of best practices in risk management, protocol safeguards, and collaboration with ecosystem partners.

Building on this foundation, the proposed initiative will strengthen 1inch’s ability to influence policy discussions, promote responsible innovation, and shape a regulatory environment that supports an open, secure, and permissionless future of finance.

To achieve this, the initiative will pursue the following key objectives:

• Enhance brand recognition among regulators and policymakers, institutional stakeholders through strategic outreach and visibility initiatives.
• Drive active engagement in regulatory discussions and position 1inch as a thought leader in shaping DeFi policy and risk management.
• Advanced educational programs that empower users and reduce risk exposure that promote best practices in DeFi risk management, fostering a more informed and resilient 1inch product ecosystem.

Specification

To effectively execute the initiative, the following implementation is proposed:

Strategic Partnerships and Outreach

1. Engage with key stakeholders including regulatory bodies, policy think tanks, academic institutions, and DeFi-focused advocacy organizations to foster mutual understanding and collaboration.
2. Participate in high-impact events such as regulatory roundtables, policy-related events and conferences to increase 1inch’s visibility and influence.
3. Forge alliances with entities at the forefront of Web3 innovation and risk management, strengthening 1inch’s strategic footprint in global discussions.

Advocacy and Thought Leadership

1. Contribute to position papers and thought pieces that articulate principles and approaches to DeFi regulations as well as knowledge-based content (e.g., whitepapers, handbooks) tailored to the needs of regulators, policy experts, and institutional audiences.
2. Ensure 1inch’s active participation in policy forums, regulatory consultations, and both global and regional industry regulatory associations and alliances.
3. Increase communication around 1inch’s risk management initiatives as benchmarks for responsible DeFi participation, targeting both Web3-native and TradFi audiences to reinforce the brand’s credibility and institutional appeal.
4. Host/co-host workshops, roundtables on DeFi security, risk management, and regulatory frameworks leveraging DeFi adoption.
5. Collaborate with academia and/or think tanks on initiatives related to DeFi and blockchain.

Adapt implementation strategy based on measurable outcomes, stakeholder feedback, user risk behavior, and evolving priorities in the global DeFi landscape.

Budget Allocation

The total proposed budget of $110,000.00 will support the execution of the above workstreams, with the following breakdown:

• Industry Association Memberships and Support for GBBC, DeFi Education Fund, Blockchain Association, and region-specific (EU) like INATBA,
• Policy Event Participation (travel, attendance),
• Co-Sponsored Side Events.

Total Budget: $110,000.00 to be transferred from the DAO treasury to the Foundation's wallet address 0x8D08a4CC146aaFB7B9EB0F15761e6295D458E614.

Key Outcomes

1. Improved alignment with global and regional regulatory expectations through active engagement with key jurisdictions and contribution to emerging DeFi policy frameworks.
2. Strengthened 1inch’s position as a leading advocate in DeFi, promoting regulatory approaches that safeguard users and uphold the principles of permissionless innovation.
3. Enhanced operational readiness, enabling 1inch to respond effectively to regulatory developments and support compliant, future-proof product evolution.
4. Increased institutional trust and credibility, positioning 1inch as a risk management-conscious and compliance-ready protocol partner.