The Conflict: Bukov vs. Kunz
Published 7/16/2026, 8:03:52 PM
As of July 16, 2026, 1inch is navigating a significant leadership crisis following the firing of co-founder Anton Bukov. While Bukov remains a 50% shareholder in the for-profit entity 1inch Labs, the protocol's governance is structured to prevent a single individual from exercising unilateral control through a combination of "staked governance" and multi-signature safeguards.
The Conflict: Bukov vs. Kunz
The firing of Anton Bukov, announced on July 16, 2026, stems from a strategic rift regarding the protocol's direction.
- Sergej Kunz (Co-Founder/CEO): Has pivoted the platform toward institutional adoption and traditional finance (TradFi) integrations.
- Anton Bukov (Fired Co-Founder): Advocated for a "pure DeFi" vision. Bukov claims he sought leadership changes for months before his termination in November 2025. He has since launched a new infrastructure startup called Second Tier.
- The 50% Stake: Bukov retains 50% equity in 1inch Labs. The primary governance risk is whether this equity translates into 50% of the 1INCH token voting power, which could allow him to veto or force DAO proposals.
Governance Framework and Safeguards
1inch utilizes a decentralized autonomous organization (DAO) to manage protocol parameters, but operational power is currently bifurcated between the DAO and the for-profit 1inch Labs.
| Governance Feature | Mechanism | Impact on 50% Stakeholder |
|---|---|---|
| Voting Power | Unicorn Power (UP) | Voting power is only granted to those who lock/stake 1INCH tokens. A 50% holder must lock their tokens to exercise power. |
| Quorum Requirement | 10 Million UP | A 50% holder could easily meet or block this threshold, potentially paralyzing the DAO. |
| Treasury Security | 7-of-12 Multi-sig | The DAO Treasury requires 7 out of 12 signers to approve transactions, preventing unilateral fund drainage. |
| Veto Power | 72-hour Timelock | Multi-sig signers can veto malicious transactions during a 72-hour window, acting as a "fail-safe" against hostile takeovers. |
Reported Risks and Community Response
The concentration of power has led to accusations that the 1inch DAO is a "front for decentralization."
- Revenue Access: DAO delegates have publicly criticized 1inch Labs for cutting off the DAO from protocol revenue—reportedly totaling $5.3 million annually—for over two years. [Note: The specific $5.3M figure and two-year timeframe have not been independently verified].
- Technical Debt: Bukov was the primary architect of 1inch’s security. His departure leaves a vacuum in technical leadership, with Bukov stating he now has "no oversight of the protocol's product architecture or security."
- Market Stability: Despite the internal turmoil, the 1INCH token has remained relatively stable, suggesting the market had already anticipated leadership friction.
Market Snapshot (July 16, 2026):
- Price: ~$0.0735
- Market Cap: ~$103.33M
- 24h Change: -1.54%
Conclusion
1inch currently operates as a "divided house." While the 7-of-12 multi-sig and staked governance mechanics prevent Bukov from unilaterally seizing the protocol or its funds, his 50% stake remains a "sword of Damocles" that could block future strategic pivots. Operational control currently rests with Sergej Kunz and 1inch Labs, as the DAO continues to struggle for access to protocol revenue. The long-term resolution likely depends on whether Bukov chooses to exit his position or use his stake to challenge Kunz's institutional roadmap.