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title: Understanding ICHI
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title: Understanding ICHI
tags: ICHI
description: In-house oneTokens for Every Crypto Community
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# [Understanding ICHI](https://docs.ichi.farm/)
In-house oneTokens for Every Crypto Community


## [**Intro to ICHI**](https://github.com/ichifarm/ichi-farming#intro-to-ichi)


ICHI is a self-sustaining, community governed infrastructure that enables any cryptocurrency community to create and govern their own in-house, non-custodial oneToken (a stablecoin valued at $1).

### Use-Case

1. Makes a stable currency (oneToken) for any existing coin/token community,
2. Applies market forces to set level of reserves backing the stablecoin between 0-100% to provide stability that is just as good as fiat-backed stablecoins as you can redeem them for exactly 1 USDC,
3. Locks up existing coins and is fully on-chain creating more demand for the said token, and
4. Gives oneToken holders the ability to govern their member coin’s Treasury.


ICHI introduces an innovative DAO-like governance model for the overarching decisions made on the development of the entire platform, incentivizing adoption and encouraging real commitment to the ICHI community from its members.

## [**Understanding oneTokens**](https://docs.ichi.farm/introduction/the-win-win-design-of-ichi)

oneTokens provide the hard peg of centralized stablecoins without sacrificing decentralization. 
They keep their value at $1, are purely on-chain, and accrue a community treasury in each oneToken's cryptocurrency.

#### **Table 1: Feature Comparison by Category of Stablecoin**

| Feature | Algorithmic | Fiat Backed | Crypto Backed | ICHI Stablecoins |
| -------- | -------- | -------- | -------- | -------- |
| Mint for Exactly $1     | No     | Yes     | No     | **Yes**     |
| Redeem for Exactly $1     | No     | Yes     | No     | **Yes**     |
| 100% On-Chain Reserves     | Yes     | No     | Yes     | **Yes**     |
| Community Treasury     | No     | No     | No     | **Yes**     |
| Liquidation Risk     | No     | No     | Yes     | **No**     |

Each oneToken can be redeemed for exactly 1 USDC while accruing a community governed treasury of the oneToken's cryptocurrency. The cryptocurrency paid to mint isn't paid back by the system.  Instead, it remains in a community treasury.  

oneTokens are the governance tokens of specific oneToken systems.  
Each oneToken is a vote on treasury allocations, specific stablecoins parameters (like minting and redeeming fees), and on adoption programs.

ICHI makes it possible to "community hodl" your favorite coins vs. selling them, all while doing real business:
- Predictably pay expenses.
- Control risk.
- Set aside funds for taxes.
- Build a community governed treasury.

## [Separate Governance: ICHI Protocol vs. oneTokens](https://docs.ichi.farm/)

### **ICHI Governance:**
ICHI is the governance token of the ichi.org community and platform. It is hard capped at 5M tokens. Each ICHI is a vote on allowed oracles, collateral, investment strategies, etc in exchange for protocol governance rewards.

ICHI has been community owned and governed from the frist block:
- No pre-sale.
- No ICHI compensation to core team until 3 months after launch.
- 5M ICHI HARD CAP - All 5M went to Farming Contract.
- Current Farming rate is 0.5 ichi per block.
- ICHI halvings are scheduled by community vote.
- ICHI is farmed to the ICHI Community Treasury, any unallocated ICHI is returned to farming contract. 
- Ichipowah controls ICHI Community Treasury.
- Ichipowah is calculated by staked ICHI + ICHI in the [Sushiswap ICHI-ETH Pool](https://app.sushi.com/pair/0x9cd028b1287803250b1e226f0180eb725428d069).

#### **Where can I vote?** 
https://snapshot.org/#/ichi.eth/all

### **oneToken Governance:**
oneTokens are the governance tokens of specific oneToken systems. Each oneToken is a vote on treasury allocations, specific stablecoin paramters (like minting and redeeming fees), and on adoption programs.

#### **What does it mean to govern a community treasury? What can they do?**

Each stablecoin represents a vote that decides what actions to take with the cryptocurrency paid to mint stablecoins. Proposals may include the following actions:
- Selling coins to buy more USDC and deposit it to the collateral.
- Investing the coins in DeFi (decentralized finance) contracts and earning yield.
- Paying adoption incentives for users to spend or save the stablecoin.
- Paying grants to build applications and systems that support the stablecoin. 

This is not an exhaustive list. The community may propose and vote on any proposal.

## **Summary**
ICHI introduces an innovative DAO-like governance model for the overarching decisions made on the development of the entire platform, incentivizing adoption and encouraging real commitment to the ICHI community from its members.

## [Resources](https://github.com/ichifarm/ichi-farming#-resources)

[**Website**](https://www.ichi.org/)
[**App/Farm**](https://www.ichi.farm/#/farm)
[**Medium**](https://medium.com/ichifarm)
[**Telegram**](https://t.me/ichifarm)
[**Twitter**](https://twitter.com/ichifarm)
[**Discord**](https://discord.gg/mg28GzDC)
[**Snapshot (Voting)**](https://snapshot.page/#/ichi.eth)

## [Technical](https://github.com/ichifarm/ichi-farming#-technical)
[**Docs**](https://docs.ichi.farm/)
[**Github**](https://github.com/ichifarm)