Injective Proposes INJ 3.0 for Deflationary Shift

Injective, a Layer 1 blockchain, has proposed INJ 3.0 to reduce on-chain token creation, making it more deflationary.

Injective (INJ), a public Layer 1 blockchain based on Cosmos, has released a new proposal called INJ 3.0, which seeks to make the INJ token creation process less on-chain and therefore more deflationary. As of now, the INJ forum is hosting a governance discussion. We will put the proposal to a vote by April 19th.

According to Injective, lowering the INJ token’s inflation rate bounds will make it possible for it to overtake Bitcoin as one of the most deflationary cryptocurrency assets. This change is comparable to the halving of Bitcoin.

Furthermore, the intentional decrease in inflation rate ceilings will maintain INJ’s reputation as ultra-low money. With token scarcity and participation incentives balanced, INJ hopes to create a long-lasting ecosystem that rewards early adopters and draws in new members.

In the end, setting the inflation rate change parameter to 0.5 will make it possible for the protocol to react to changes in staking activity faster. This modification will allow for more asset staking and accelerate the development of deflationary traits, ensuring the protocol’s continued adaptability and resilience.

Injective Installs the INJ Burning System and Has Burned 5.9 Million Tokens Thus Far

We created an interoperable blockchain, Injective, to simplify the creation of sophisticated Web3 financial applications. A decentralized orderbook, binary options, and real-world asset (RWA) module are just a few of the customisable modules available to developers, allowing them to create a wide range of intricate applications.

The injective ecosystem uses INJ for various functions, including staking for network security and participating in governance procedures. Ekly token burn auctions started following the injective mainnet debut, which gradually decreased the amount of INJ available.

With the release of INJ 2.0 in August 2023, we introduced a larger token burn auction system, enabling participation in weekly auctions for any decentralized application (dApp) running on the Injective network. This campaign made it easier to burn more INJ tokens every week. There have been over 5.9 million INJ tokens burned as of this writing, for a total of about $190 million.