Injective Approves Tokenomics Overhaul to Cut INJ Supply
The Injective protocol community approved a significant tokenomics revision on Monday, passing a governance proposal with 99.89% support based on staked voting power.
Injective is a layer-1 blockchain geared toward decentralized finance applications. Its native token, INJ (INJ), is used for staking, governance, and transaction fees.
The Supply Squeeze proposal (IIP-617) lowers the network’s native token issuance while continuing the buyback-and-burn program, which uses protocol-generated revenue to permanently remove tokens from circulation. The network has removed approximately 6.85 million INJ through token burns to date. The proposal aims to accelerate token reduction by aligning lower issuance with recurring buybacks. According to an X post from Injective on Monday, the now-live changes will enable “INJ to become one of the most deflationary assets over time.”
The vote comes amid a prolonged decline in INJ’s market price during a wider altcoin downturn. Over the past year, INJ has fallen nearly 80% and remains more than 90% below its March 2024 all-time high. The token was down about 8% on Monday, according to CoinGecko.
At the time of writing, Injective’s total value locked stood at $18.67 million across its DeFi ecosystem, according to DefiLlama, down from peaks above $60 million in 2024.
ETF applications and new validator participation
Despite declines in INJ’s price and total value locked, Injective continued to see institutional engagement in 2025. In July, Cboe and Canary Capital filed regulatory applications for staked Injective exchange-traded funds (ETFs), each seeking to list a fund that would hold and stake INJ to earn rewards via an “approved staking platform.”
The network also expanded its validator set. In February, Deutsche Telekom’s IT services unit, Deutsche Telekom MMS, joined as a validator. More recently, Korea University became the first academic institution to operate a validator and conduct onchain research on Injective, according to an announcement on Wednesday.
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