Crypto: Injective Validates a Vote to Reduce the INJ Token Supply

The Injective community has voted 99.9% to drastically reduce the supply of the INJ crypto. Far from being a simple technical adjustment, this choice marks a shift towards a programmed and assumed deflation.

A unified crypto governance to rarify the INJ token

Thanks to the IIP-617 proposal validated by an overwhelming majority, the Injective crypto protocol takes action. The adopted mechanism removes excessive creation of new tokens. And not only that! It also strengthens regular burns funded by the network’s revenues. Immediate result: the supply of the INJ crypto tightens.

Since the launch of staking, the protocol had already eliminated 6.85 million INJ tokens. Now, each interaction on the crypto blockchain intensifies this trend. Less supply, more upward pressure. In other words, INJ will become one of the most deflationary crypto assets over time.

This direction aims to restore the perceived value of the INJ token, whose price has dropped 90% since its March 2024 peak.

Injective’s deflationary model: crypto strategy or risky bet?

The vote on the IIP-617 proposal falls within a decentralized governance logic, where each decision directly impacts supply. Injective abandons the typical inflationary scheme of the beginnings to embrace a long-term vision. Crypto becomes rare. Enough to strengthen investor confidence!

This approach raises questions, however. Can a secure crypto network be maintained with fewer staking rewards? According to some crypto analysts, Injective tries to approach models like Ethereum post-Merge, or BNB with its quarterly burns. The blockchain nonetheless bets on fees rising as a new source of income for validators.

In any case, Injective sends a strong signal to the crypto market. By reducing the INJ token supply, the protocol plays the rarity card. The future will tell whether this strategy triggers a new wave of adoption or remains a bold bet to watch closely.