In its ongoing pursuit of innovation, Injective has launched its most comprehensive token economic upgrade program, designed to significantly increase the amount of INJ tokens burned each week.

A major leap forward for dApps on Injective

All decentralized applications (dApps) built on the Injective platform can now participate in INJ destruction auctions and freely decide how much of the generation fee they are willing to allocate for destruction. This shift will create a more resilient, INJ-driven on-chain economy that leverages the value of the entire thriving Injective ecosystem.

Evolution of the Burning Auction Mechanism

With the mainnet launch, Injective pioneered the burning auction concept.

The Injective Token Burn Auction mechanism reconstructs the protocol fees into collective protocol value. Initially, Token Burn Auction puts 60% of the fees collected by exchange dApps built on Injective into the bidding basket, and then uses the tokens obtained from the bidding to fund the basket.

During the weekly destruction event, each exchange dApp will put 60% of its transaction fees into the bidding basket, allowing community members to compete for the entire week's revenue through bidding. The funds used to auction the basket are destroyed immediately after the auction, effectively reducing the overall token supply.

This innovative approach transforms transaction fees into community-driven incentives, stimulating user participation and engagement. Both the winners and the wider Injective community benefited greatly, resulting in the permanent destruction of over 5.7 million INJ tokens through the previous auction model.

New INJ Burn 2.0 mechanism: wider coverage

Since the launch of the mainnet, Injective has grown into a global giant and has been crowned the fastest Layer 1 blockchain. Its reach now covers a wide range of dApps, far beyond exchanges, and includes areas such as DeFi, lending, options, NFTs, gaming, and social finance. With this progress, the burning mechanism needs to expand accordingly.

INJ 2.0 introduces a groundbreaking feature where any dApp within the Injective ecosystem can participate in the destruction auction, thereby expanding the mechanism to a wider range of protocols.

This upgrade framework empowers diverse dApps, from lending platforms to NFT marketplaces and prediction applications, to choose to participate in auction destruction. In addition, the protocol has the flexibility to allocate any portion of the fees it collects to the bidding basket, even up to 100%.

Injective has completely revamped its developer documentation to provide clear instructions on how new dApps can seamlessly integrate with the bidding basket. For more detailed guidance, please refer to the full documentation.

INJ's future is promising

This major upgrade brings great prospects to the Injective community, heralding a wider range of use cases that can be integrated with the repurchase and destruction mechanism, giving the native INJ token higher utility. The active participation of various dApps not only enriches the auction rewards, but also promotes a larger number of INJ tokens to be destroyed.

INJ: Empowering the New Economic Power Era

INJ Burn 2.0 goes beyond technological advancement and embodies Injective's unwavering commitment to fostering a thriving interconnected Web3 ecosystem. This expansion drives collaboration, innovation, and shared prosperity, and is underpinned by a philosophy of community empowerment.

Introducing True Ultrasonic Currency — Injective

The emergence of INJ 2.0 marks a critical moment in the evolution of finance. While BTC pioneered the concept of a sound digital currency, Injective is creating a truly ultrasonic currency by building a new system: INJ.

Through an inclusive and adaptive approach, Injective enables a variety of dApps to participate in auction destruction events, enhancing community participation and economic resilience. This transformation highlights Injective's firm commitment to building a vibrant and collaborative ecosystem that continuously pushes the boundaries of possibility.

Injective

Injective is a fast, interoperable layer 1 blockchain designed for building top Web3 financial applications. Developers can benefit from powerful plug-and-play modules to create unparalleled dApps. INJ is the fuel that drives Injective and its thriving ecosystem. Backed by influential investors such as Jump Crypto, Pantera, and Mark Cuban, Injective was incubated by Binance.