INJ – Injective Native Token Technology Overview
INJ is the native token of the Injective blockchain ecosystem, used for on-chain operations, network security, and ecological incentives. Its design integrates trading functionality, staking mechanisms, and governance roles, making it the core asset of the Injective network.
1. On-chain Transaction Fees (Gas Fee)
• INJ serves as the transaction fuel, paying for all operations performed on the Injective network, including:
o Decentralized Exchange (DEX) trading
o Smart contract execution
o Cross-chain asset transfers
• Paying fees with INJ ensures transactions are fast and low-cost.
2. Staking & Network Security (Staking & Network Security)
• Validators: Must hold and stake INJ to participate in block proposals and transaction validations, ensuring network consensus and security.
• Delegators: Token holders can delegate their INJ to validator nodes, participate in network staking, and earn rewards.
• Staking rewards: Currently approximately 15% annualized, dynamically adjusted based on node staking amounts, network operational status, and staking strategies.
• Security and incentive design: The staking mechanism ensures that validators are accountable for their actions on the network, with penalties (slashing) for violations or inactive nodes, enhancing overall network security.
3. On-chain Governance (Governance)
• INJ holders can vote on proposals and protocol upgrades within the Injective ecosystem.
• Includes decisions such as transaction fee distribution, parameter adjustments, new feature deployments, etc.
• All governance activities are transparent and traceable on-chain, ensuring DAO-style decentralized management.
4. Auction & Burn Mechanism (Auction & Burn Mechanism)
• Injective will use 60% of transaction fees weekly for the auction mechanism:
o Users bid using INJ, and the winners receive all transaction fees as rewards.
o INJ of those who did not win will be burned, creating deflationary pressure and enhancing the long-term value of the token.
• The auction mechanism concurrently combines revenue distribution and deflationary design, creating a token economic cycle.
Summary
INJ is not only the transaction medium of the Injective ecosystem but also a core component of network security, governance decision-making tools, and deflationary incentive mechanisms. Its multifunctional design ensures efficient circulation and stable value of the token within the ecosystem, supporting holders' participation in network governance and revenue sharing.
