Injective Governance Vote Passes to Accelerate INJ Supply Cuts
Injective's community overwhelmingly approved a governance proposal to accelerate INJ token supply reduction through reduced issuance and ongoing buyback-and-burns.Summary
The Injective protocol community overwhelmingly passed the Supply Squeeze proposal (IIP-617) with 99.89% support, aiming to overhaul the tokenomics of its native INJ token. This proposal reduces token issuance while maintaining the network's buyback-and-burn program, which uses protocol revenue to permanently remove tokens from circulation. The network has already removed about 6.85 million INJ, and the changes are designed to make INJ one of the most deflationary assets over time by aligning reduced issuance with recurring buybacks. This governance decision follows a significant market downturn for INJ, which has fallen nearly 80% over the past year from its March 2024 all-time high. Despite price declines and a drop in Total Value Locked (TVL) to $18.67 million, Injective continues to attract institutional interest, including recent ETF filings by Cboe and Canary Capital, and expanded validator participation from entities like Deutsche Telekom MMS and Korea University.
(Source：Cointelegraph)