Injective Introduces the INJ Supply Squeeze to Bolster Token Scarcity
Layer-1 blockchain Injective has taken one other step to make its native cryptocurrency, INJ, extra deflationary than it already is.
After a unanimous 99.89% vote in assist of a proposal, dubbed IIP-617 (INJ Supply Squeeze), the blockchain growth workforce unveiled the new device to double down on its deflationary measures.
The INJ Supply Squeeze
Since its mainnet debut in 2021, Injective has explored varied methods to make INJ scarce and probably increase its worth. Shortly after launching its mainnet, the L1 community started frequent token burns.
In October 2025, it embraced a Community BuyBack mechanism. Both measures intention to cut back the circulating provide of the cryptocurrency and improve its value in the long run. The L1 blockchain has already completely eliminated 6.85 million INJ from existence.
On January fifteenth, Injective launched the IIP-617 proposal to its group. This measure completely will increase the price at which INJ cash are provided into the market.
The announcement said that the INJ Supply Squeeze will work alongside present deflationary measures, equivalent to the Community BuyBacks.
The blockchain’s workforce believes that these token-reduction mechanisms will bolster INJ’s tokenomics, highlighting that its design is progressively shifting towards “a structurally enhanced deflationary mannequin.”
Impact on INJ’s Price
Injective’s co-founder, Eric Chen, reiterated the affect that these deflationary measures may have on INJ’s general efficiency, saying:
“The INJ Supply Squeeze spearheaded by the Injective group represents a decisive step in the evolution of Injective’s financial design. By doubling the price of deflation and pairing it with systematic tokens buybacks, Injective is reinforcing its shortage and positioning INJ as a long run deflationary asset aligned with the progress of the ecosystem.”
Most blockchains and crypto tasks adopting a deflationary mannequin accomplish that in an effort to cut back their token’s provide and bolster its worth. Still, INJ has yet to experience a notable value uptrend regardless of its various token-reduction mechanisms. At the time of writing, it sold for $4.64.
Notwithstanding, a breakthrough in different forays, equivalent to the staked exchange-traded fund (ETF) business, may deliver INJ the much-needed value upturn.
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