The Injective community has voted almost unanimously to change how the network handles its tokens.
Injective, a blockchain for decentralized finance, had its community vote on a proposal (Supply Squeeze (IIP-617)) to reduce the rate at which new INJ tokens are created. The vote passed with almost 99.89% support. INJ tokens are used for staking, governance, and transaction fees on the network.
The plan will cut the amount of new INJ coming into existence while continuing a program where the network buys back INJ and removes them from circulation. So far, about 6.85 million INJ tokens have been burned. The goal is to speed things up by issuing fewer tokens and buying back more.
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Injective mentioned on X that the changes are live and should make INJ more deflationary as time passes.
Injective’s Market Still Faces Pressure
This vote happened after INJ’s price had been declining for a while, in line with other altcoins. INJ has fallen nearly 80% over the past year and is down over 90% from its highest price in March 2024. It was also down about 8% on Monday, according to CoinGecko.
Most people in the community on X seemed happy about the vote. Many think that it’s a long-term change and don’t expect it to make the price jump up right away.
DefiLlama data shows that the total value locked (TVL) on Injective was $18.67 million at the time of writing. This is way down from over $60 million in 2024.
Even with the price drop and lower TVL, Injective still attracted interest. This involved regulated investment products, validator participation, and new financial market tools.
Korea University recently became the first school to run a validator on the network and do on-chain research.
