Injective 🥷 (@injective): INJ 3.0: Everything You Need to Know

INJ 3.0: Everything You Need to Know What is INJ 3.0? INJ 3.0 represents the latest evolution of Injective's tokenomics. At its core, the upgrade aims to dramatically decrease the supply of $INJ that continues until Q1 2026. However, beyond these adjustments, INJ 3.0 builds on Injective’s unique token economic design to enhance its programmability and reinforce its deflationary nature, while fostering the growth of a dynamic ecosystem of decentralized applications and financial products. Before We Dive In Injective is different from all L1s in that: 1⃣ Injective burns a portion of the ecosystem’s protocol-generated revenue every week 2⃣ This allows deflationary activity to horizontally scale with the size and success of its ecosystem The Flywheel of INJ Tokenomics Dynamic Supply: As more INJ is staked, the rate of deflation is increased programatically. Currently, INJ is one of the largest staked networks with over 50% of the supply staked. This allows the rate of supply reduction to increase over time. Burn Auction: Held weekly, the Burn Auction invites participants to bid on a basket of tokens accumulated from a portion of the revenue generated by Injective dApps. The auction operates as an English Auction, where bids are placed using INJ. The highest bidder receives the entire basket of assets at the auction’s expiry. The winning INJ bid is then burned, removing it from the total token supply. To date over 6.38 Million INJ has been burned. TLDR: Every week, a portion of dApp revenue is auctioned off to the highest bidder. The winning INJ bid is then burned. So if dApp revenue goes up, so does the effective burn. The INJ 3.0 Flywheel The real beauty of the upgrade lies in the flywheel effect that is able to occur over time. INJ 3.0 is a schedule for parameter adjustments related to dynamic supply, commonly referred to as “Supply Rate Bound Tightening”. Supply Rate Lower/Upper Bound: Max and min values the supply rate can reach (think of this like speed limits) INJ 3.0 raised the Supply Rate Change from 10% to 50%, allowing for it to more quickly respond to network activity and maintain alignment with the token economic framework. As more INJ is staked, the rate of deflation increases. As dApp revenue increases, more INJ is burned weekly. Additionally, INJ 3.0 set a schedule for quarterly decreases in the Supply Rate bounds, timed with the Bitcoin $BTC halving. Over two years, the lower bound will decrease by 25%, from 5% to 4%, and the upper bound will decrease by 30%, from 10% to 7%. Together, these parameter adjustments increase INJ’s deflation rate by 400%. Join the journey with Injective and access true ultrasound money for the new internet economy.