The latest decentralized finance protocol to launch its own token is crypto wallet provider Instadapp. The project is also one step closer to its next big upgrade to Layer 2.
The blog post also detailed the role that the new INST governance token would play for the platform. It also introduced three new concepts—account extensions, decentralized governance, and Layer 2 integration.
INST governance token inbound
The announcement added that the governance and token contracts have already been deployed based upon the Compound Finance standard. The initial supply of INST tokens will be 100 million at genesis. It added that there will be a phased governance rollout:
“Security and safety are a prime focus as we transition to decentralized governance, and as such, the protocol’s ownership will be distributed in increments.”
As with most DeFi protocols, the team and investors get the first dibs of the new tokens. The token distribution will form a “Micro DAO.”
A majority of the INST genesis tokens will be allocated to developer ecosystem and community building. Initially, the tokens won’t be used for governance participation.
On-chain governance processed will be managed by the core team until the complete distribution has been made.
“The initial distribution will be non-transferable, except for the genesis address. Once on-chain voting is activated, the community as a whole can come together to flip the transferability switch.”
The team gave no specific token launch date aside from a comment that it’s expected for Q2.
On Feb. 4, the DeFi wallet and management platform launched a service called Instadapp Actions. This enables users to access automated debt refinancing between various DeFi lending protocols to prevent costly collateral liquidations.
Instadapp Upgrading to L2
In addition to the new governance token, there will be an upgrade from the existing DeFi Smart Account (DSA) system to a new one called DeFi Smart Layer (DSL).
The announcement also added that the new Instadapp DSL accounts are more modular. Because of this, it can allow for L2 composability, increased flash loan capacity, and automated yield generation from idle assets.
The upgrade will also enable users to migrate assets and debt positions to Layer 2 using the same interface. According to DeFiPulse, Instadapp ranks seventh place with a near-record high TVL of $2.65 billion.