Public Layer 1 blockchain based on Cosmos, Injective (INJ) unveiled a new INJ 3.0 proposal that aims to decrease on-chain parameters related to creating new INJ tokens, thereby making it more deflationary. At present, the governance discussion is underway on the Injective forum, with plans for the proposal to undergo voting by April 19th.
Injective foresees that reducing the inflation rate bounds of the INJ token will enable it to become one of the most deflationary cryptocurrency assets, potentially surpassing Bitcoin. This adjustment is akin to Bitcoin’s halving events.
Furthermore, the controlled decrease in the inflation rate limits will guarantee that INJ maintains its status as ultrasound money. By balancing incentives for participation and token scarcity, Injective aims to establish a sustainable ecosystem that rewards early supporters while enticing new participants.
Ultimately, increasing the inflation rate change parameter to 0.5 will enable the protocol to respond more swiftly to shifts in staking activity. This adjustment will facilitate more assets being staked and enhance deflationary characteristics more rapidly, ensuring the protocol remains adaptable and resilient.
INJ 3.0 is coming to Injective to bring the ultimate upgrade to Injective tokenomics, making $INJ the most deflationary asset to date.The new proposal would directly reduce the supply of INJ at a rapid rate. The gov discussion is now live on the Injective forum. pic.twitter.com/sdjaaq4iWt
— Injective (@injective) April 15, 2024
Injective Implements INJ Token Burn System, Burns 5.9M Tokens So Far
Injective is an interoperable blockchain designed to facilitate the creation of advanced Web3 financial applications. Developers benefit from a range of customizable modules, including a decentralized orderbook, binary options, and real-world asset (RWA) module, enabling the development of a wide range of complex applications.
INJ serves various purposes within the Injective ecosystem, including staking for network security and participation in governance processes. Notably, after the launch of the Injective mainnet, weekly token burn auctions began, leading to a reduction in the supply of INJ over time.
The implementation of INJ 2.0 in August 2023 brought about an expanded token burn auction system, allowing any decentralized application (dApp) operating on the Injective network to participate in weekly burn auctions. This initiative facilitated the burning of larger quantities of INJ tokens each week. Currently, approximately 5.9 million INJ tokens have been burned, amounting to around $190 million in value as of the current writing.
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