Injective Approves INJ Token Deflation Acceleration

Injective's blockchain community has overwhelmingly approved a governance proposal to accelerate the deflation of its native INJ token, aiming to reduce supply and enhance long-term scarcity amid ongoing market challenges.

The proposal, known as IIP-617 or the INJ Supply Squeeze, passed with 99.89 percent support from staked voting power among validators and token holders. Introduced on January 15, the measure took effect immediately following the vote on January 19. It doubles the network's deflationary rate by halving annual token emissions, which currently range from 5 to 10 percent based on staking ratios, while bolstering the existing Community BuyBack program. Under this mechanism, protocol-generated revenue repurchases INJ tokens from the open market and permanently removes them from circulation through burns.

Since its mainnet launch in 2021, Injective, a Layer 1 blockchain focused on decentralized finance applications, has pursued deflationary strategies to align token supply with ecosystem growth. The network has already burned approximately 6.85 million INJ tokens, reducing the total supply from an initial 100 million. Officials described the update as a structural...