The Injective Burn Auction has launched!
Injective will now have one of the largest token burning ratios in the entire crypto industry, leading to a potentially ultrasound deflationary INJ token.
TLDR: Injective Protocol will now automatically burn 60% of all exchange fees every week. A new auction interface has also been created for users to track fees collected on Injective. Users can begin participating in the auction now using the new landing page! The first burn is automatically set to occur on Wednesday, December 15, 2021 at 1 PM UTC.
Injective Hub: Burn Auction Page
How the Injective Burn Auction Works
As approved by the Injective community as part of the canonical mainnet rollout, every week, 60% of exchange fees collected on the protocol will undergo a buy back and burn process that’s managed by a community-led auction. The auction works in the following manner:
- Fees collected on Injective are put into an auction (For example: let’s say that there is a basket of $100. $50 are in ETH and $50 are in WBTC)
- Users can bid using only INJ (let’s say User A bids $90 in INJ and User B bids $95 in INJ)
- User B will win the bid with $95. Effectively, User B is able to own a $100 asset basket for only $95 which would potentially open up arbitrage opportunities
- The $95 paid in INJ will be immediately burned
- A new auction period will begin as soon as a burn is completed
Get ready for the first weekly Injective burn 🔥
Injective is a custom interoperable layer one protocol for building powerful exchange, DeFi, derivatives & Web3 applications. Injective was created using the Cosmos SDK and is able to achieve instant transaction finality while sustaining lightning fast speeds. INJ is the native deflationary scarce asset that powers the Injective Protocol and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by Pantera Capital.
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