1inch Co-Founder Anton Bukov Fired, Launches Second Tier

Anton Bukov, who co-founded 1inch and led its architecture and security initiatives, was terminated in November 2025. Eight months later, Bukov announced the launch of Second Tier, a new DeFi infrastructure startup positioned to challenge 1inch's institutional-focused direction. Notably, Bukov retains approximately 50% ownership of 1inch despite his firing, creating an unusual governance situation that signals deep strategic conflict within the protocol.

The timing of the public announcement, nearly nine months after his removal, suggests settlement negotiations or non-disclosure agreements delayed disclosure. Bukov's continued substantial stake in 1inch while building a rival venture underscores the severity of disagreements over the protocol's future direction.

The Split: Decentralization vs. Institutional Adoption

The departure reflects a fundamental tension at 1inch regarding whether the protocol should prioritize decentralization or institutional market penetration. Since its 2019 launch, 1inch has positioned itself as a decentralized exchange aggregator, routing trades across multiple liquidity sources to minimize slippage and maximize execution quality. Bukov's departure suggests 1inch's leadership has shifted toward institutional partnerships and regulatory compliance, moves that conflict with his vision for grassroots decentralized infrastructure.

Second Tier's positioning directly addresses this gap. The startup aims to build DeFi infrastructure with decentralization as a core principle, potentially offering an alternative to 1inch's increasingly institutional approach. This mirrors historical precedents in crypto: Gavin Wood's departure from Ethereum in 2014 led to Polkadot, and various DeFi protocol splits have followed similar patterns of ideological disagreement between founders.

Ownership Complications

Bukov's retention of 50% ownership creates unusual governance challenges for both entities. Typically, founders who leave a project either negotiate a clean exit with equity buyouts or face dilution through new funding rounds. That Bukov maintains such a substantial stake suggests either a negotiated settlement that preserved his position or an ongoing dispute over control. This arrangement creates potential conflicts of interest: as a founder of a competitor, Bukov has access to information about 1inch's operations while building Second Tier.

The governance implications extend to 1inch's token holders. The 1INCH token operates under a governance model where token holders vote on protocol changes. A co-founder who owns 50% of the protocol but no longer works there introduces complications around voting power, strategic alignment, and fiduciary responsibility.

Market Reception and Competitive Dynamics

Second Tier faces significant headwinds as a new entrant in DeFi infrastructure. 1inch commands substantial market share in DEX aggregation, with deep integrations across Ethereum, Polygon, Arbitrum, and other chains. Network effects in routing and liquidity aggregation create defensible moats that are difficult for competitors to overcome. Additionally, 1inch has first-mover advantages and established relationships with liquidity providers and institutional traders.

However, Bukov's departure may signal vulnerability at 1inch. The loss of a co-founder who led security and architecture raises questions about technical continuity. If 1inch's institutional pivot has alienated core contributors who value decentralization, Second Tier could attract talent and community support that views the original protocol as having compromised its principles.

Co-founder departures often precede significant competitive disruptions in crypto. Whether Second Tier becomes a meaningful competitor or remains a niche alternative depends on its technical execution and ability to differentiate from 1inch's feature set.

What This Means for DeFi Infrastructure

This split reflects a mature challenge in DeFi: balancing decentralization with institutional adoption. Projects that prioritize institutional partnerships often sacrifice some degree of decentralization and community control. Projects that prioritize decentralization often struggle to achieve mainstream adoption and regulatory clarity.

Bukov's exit and Second Tier's launch suggest the market may support multiple infrastructure approaches. If Second Tier can build a product that appeals to users and developers who value decentralization over institutional partnerships, it could carve out a meaningful niche. Conversely, if 1inch's institutional pivot proves commercially successful, Bukov's venture may struggle to gain traction.

The 50% ownership stake remains the wildcard. How 1inch's governance structure evolves with a co-founder who owns half the protocol but leads a competitor will likely shape the trajectory of both projects. For token holders and users, this dispute underscores the importance of transparent governance and clear founder alignment on strategic direction.