Injective cuts INJ supply after near-unanimous community vote

Injective passed IIP-617 with 99.9% support, cutting INJ issuance and boosting burn mechanisms to make INJ one of the most deflationary crypto assets.

The Injective community has overwhelmingly approved governance proposal IIP-617, marking a significant shift in the INJ token’s monetary policy. With nearly 99.9% support, the update introduces a new deflationary phase by permanently reducing new INJ issuance and enhancing the protocol’s buyback-and-burn mechanisms. This dual approach is designed to accelerate the contraction of INJ’s net supply, aligning token circulation more closely with network usage and fee generation. Since mainnet launch, approximately 6.85 million INJ have already been burned, and the new framework cements long-term supply reduction as a core part of Injective’s tokenomics. The move comes amid high market volatility and aims to position INJ as one of the most deflationary assets in crypto, potentially offsetting recent declines in Total Value Locked within its DeFi ecosystem. The proposal was enacted immediately, with the community expecting these changes to enhance long-term value for stakeholders and support the network’s economic future.