Injective unveils largest tokenomics upgrade with INJ 3.0 release
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Injective has activated the INJ 3.0 update, designed to inject long-term value and support the growth of the Injective ecosystem. The latest version’s key focus is a substantial reduction in the supply of Injective’s native token, INJ, which the team said is the largest tokenomics upgrade.
INJ 3.0 is officially live on mainnet, allowing $INJ to become one of the most deflationary assets in all of crypto.
Over the next two years, the supply of INJ will be decreased on an accelerated pace.
A new era of Injective begins now. pic.twitter.com/oHOIZm2i3h
— Injective 🥷 (@injective) April 23, 2024
According to Injective’s recent blog announcement, the move follows a recent vote on the IIP-392, a governance proposal created to “reduce on-chain parameters for the minting of new INJ, enabling it to become more deflationary than ever before.” The vote ended earlier this week with 99.99% in favor of the proposal.
The team claimed that the proposal aligns with the Bitcoin halving schedule and sets out to decrease the supply of INJ over the next two years. As more INJ is staked, deflation rates increase. With the release of INJ 3.0, Injective targets to make INJ a leading deflationary asset in the blockchain sector.
Jenna Peterson, CEO of the Injective Foundation, said the update is essential to guarantee the sustainable growth of the Injective ecosystem, as well as to drive more adoption.
“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 Peterson.
The Injective team added that the INJ 3.0 update is set to introduce a 400% increase in the rate of deflation and a flexible monetary policy that adapts to staking activity.
According to the team, this ensures the ecosystem maintains balance and security. The supply decrease schedule is set to follow a controlled reduction rate over the next two years, with the lower bound decreasing by 25% and the upper bound by 30%.
As noted, INJ plays a central role in the Injective ecosystem, offering a range of utilities including governance, protocol fees, and security. Its unique features, such as the Burn Auction, set it apart from other assets by auctioning and burning network fees weekly. The recent INJ 2.0 update expanded this mechanism to encompass all dApp network fees, resulting in a significant increase in the amount of INJ burned.
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Author: Vivian Nguyen
