Injective governance vote approves new phase to reduce INJ token supply

Source: CryptoNewsNet Original Title: Injective governance vote approves new phase to reduce INJ token supply Original Link:

Overview

Injective has approved a governance proposal that pushes its native token INJ into a new deflationary phase, with nearly all participating voters backing the change.

The proposal passed with roughly 99.9% support, meeting quorum and clearing the way for an on-chain update to Injective’s inflation parameters.

Framework Details

The approved framework permanently tightens INJ issuance while amplifying existing burn mechanisms. Once implemented, the changes are expected to significantly accelerate net supply contraction, with the protocol estimating a sharp increase in the pace of deflation compared with the current model.

The update compounds Injective’s Community BuyBack program, which uses ecosystem-generated revenue to repurchase INJ regularly and remove it from circulation. Combined with reduced issuance, the dual mechanism is designed to align token supply more closely with network usage and fee generation.

Supply Reduction Progress

Injective has burned about 6.85 million INJ since mainnet launch, with the new framework cementing long-term supply reduction as a core part of its tokenomics.

Market Response

INJ saw a muted initial reaction to the vote, rising about 2% following the proposal’s passage before reversing lower. The token is down roughly 10% over the past 24 hours amid a broader crypto market pullback, with INJ trading near $4.73 at press time.