INJ 3.0 Release

INJ 3.0 Release
INJ 3.0 Release
     

Today, Injective unveiled the largest tokenomics upgrade to date with the launch of INJ 3.0

With this update, INJ 3.0 dramatically reduces the supply for Injective’s native token, ultimately enabling INJ to become one of the most deflationary assets within the blockchain industry, injecting long-term value to grow the ecosystem. 

Background

INJ, the native asset of Injective, serves as the cornerstone of the ecosystem, boasting a myriad of utilities that span governance, protocol fees, security mechanisms, and beyond. Its versatility and indispensability within the Injective network make it a vital asset in driving the network's growth and functionality. 

However, the utility of INJ has always been highly unique, with features that cannot be found in any other asset. For example, Injective’s Burn Auction has been widely lauded as a distinctive characteristic of INJ’s tokenomics, as it collects, auctions and burns accumulated network fees on a weekly basis. 

In the most recent update to INJ (INJ 2.0), this mechanism expanded to include all dApp network fees, capturing the protocol value that came from the growth of the ecosystem. In turn, the burn auction experienced a surge in activity, witnessing a substantial increase in the amount of INJ burned weekly. 

As Injective continues to onboard new users and dApps at a rapid pace, the need for further enhancements becomes evident in order to accommodate the growing ecosystem. It is the only way to encompass and embrace the latest developments along its growth journey.

The INJ 3.0 Update

Enter INJ 3.0, the next evolutionary step in the journey of Injective, poised to address the evolving needs of its expanding user base and ecosystem. 

The Injective community voted overwhelmingly in favor of IIP-392 to launch INJ 3.0 moving forward. Timed with the Bitcoin halving, the INJ 3.0 governance proposal aimed to decrease the supply of INJ over the next two years, with accelerated rates of deflation based on the ratio of staked INJ on-chain.

“This is the next stage in Injective’s evolution; we’ve seen billions of dollars flow in since inception. To guarantee the ecosystem serves long-term as a peer to institutional players, INJ must function as ultrasound money—rewarding early adopters and attracting new participants,” said Jenna Peterson, CEO of the Injective Foundation. “With these vital updates approved through governance by the broader Injective community, INJ 3.0 aims for INJ to surpass even the sound monetary properties of Bitcoin.”

Injective has increased the rate of deflation by a factor of 400%. The specific token supply rate change parameter ensures that Injective remains adaptive and resilient. Injective will adjust its monetary policy in real-time, reacting swiftly to fluctuations in staking activity. As a result, as more INJ is staked, the deflationary properties will increase faster. This level of flexibility maintains equilibrium and security within the ecosystem. 

INJ Deflationary Rate

The supply decrease schedule of INJ 3.0 will follow an accelerated, yet tightly controlled reduction rate timeline to protect INJ against inflation.* With INJ 3.0, Injective aims to continue its trajectory of growth and innovation, ensuring that its native asset remains at the forefront of Web3 finance.

*The exact parameters will be revealed at a later date.

About Injective

Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.

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