Injective governance vote approves new phase to reduce INJ token supply
Injective's governance overwhelmingly approved a new framework to significantly reduce the INJ token supply through increased burns and lower issuance.Summary
Injective has successfully passed a governance proposal with nearly 99.9% approval, initiating a new deflationary phase for its native token, INJ. This approved framework permanently tightens INJ issuance while amplifying existing token burn mechanisms, which is expected to sharply accelerate the net supply contraction. The update specifically compounds the existing Community BuyBack program, which uses ecosystem revenue to repurchase and remove INJ from circulation. This dual mechanism aims to align the token supply more closely with network usage and fee generation, cementing long-term supply reduction as a core component of Injective's tokenomics. Despite the significant tokenomic change, INJ experienced a muted initial market reaction.
(Source：Crypto Briefing)