Injective Suggests Decreasing INJ Token Supply for Greater Deflationary Impact
In Brief
Injective has introduced the INJ 3.0 plan, which focuses on modifying parameters tied to the minting of new INJ tokens in order to foster a more deflationary environment.
A public Layer 1 blockchain built on the Cosmos framework, Injective (INJ) has rolled out an innovative INJ 3.0 proposal aimed at scaling back the on-chain metrics involved in producing new INJ tokens, paving the way for a stronger deflationary ecosystem. Currently, discussions regarding governance are actively taking place on the Injective forum, with a voting session anticipated by April 19th.
Injective This strategy envisions a reduction in the inflationary ceilings of the INJ token, positioning it to potentially become one of the most deflationary cryptocurrencies in existence, perhaps even outpacing Bitcoin. This tactic mirrors the halving episodes seen in Bitcoin’s history.
Additionally, the systematic reduction in inflation targets will help ensure that INJ solidifies its reputation as ultra-sound money. By harmonizing incentives for engagement and the scarcity of tokens, Injective aims to cultivate a thriving ecosystem that rewards early adopters while attracting new users.
By raising the inflation rate fluctuation parameter to 0.5, the protocol will be better equipped to adapt to shifts in the market dynamics. staking activity This modification will allow for a broader range of assets to be staked and accelerate the deflationary aspects, ensuring that the protocol remains agile and robust.
Injective Introduces INJ Token Burn Mechanism, Achieving a Burn of 5.9 Million Tokens So Far
Injective is an interoperable blockchain Designed to empower the development of next-gen Web3 financial applications, developers enjoy access to a variety of customizable tools, including a decentralized order book, binary options, and a real-world asset (RWA) module, making it possible to craft an array of complex applications.
INJ serves multiple roles within the Injective ecosystem, acting as a means for staking to secure the network and for engaging in governance decisions. Following the launch of the Injective mainnet, regular token burn auctions commenced, gradually diminishing the INJ supply.
The introduction of INJ 2.0 in August 2023 brought a revamped token burn auction framework, enabling any dApp operating on the Injective network to take part in the weekly burn auctions. This initiative allowed for the incineration of larger batches of INJ tokens weekly. As a result, approximately 5.9 million INJ tokens have been burned, translating to a valuation of around $190 million based on current figures.
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