The Injective Auction (Round 24) 🔥

3 min readDec 23, 2021

How does the burn work?

Every week 60% of the aggregated exchange fees are auctioned off in return for bids in $INJ tokens in which the winning bid’s $INJ tokens are burnt (removed from circulating supply). For further information see: https://blog.injectiveprotocol.com/injective-burn-auction-launch/

Injective Auction Round 23

The long awaited Injective Burn Auction launched last week. The first auction closed at 13:00:00 UTC on 15 Dec 2021 with a winning bid of 40,000 $INJ tokens which were sent to the incinerator to be burnt and removed from circulating supply! The winning bid won a basket of $366,651.58 in stablecoins (USDT & USDC) for a bid of $344,800.00 worth of INJ tokens (40,000), which gave them a profit of ~$21,851.58.

Injective Auction Round 24

The recent auction on 21 Dec 2021 was for a basket of $175228.39 (21,767.50 $INJ). The winning bid was 21,101 $INJ ($169,863.13) which gave the winning bidder a profit of $5,365.26.

Short Term Horizon

The following graph shows how recent price per $INJ token impacts the number of tokens burnt when compared to different average daily volumes:

Circulating Supply Forecast

The following equation is used to calculate weekly supply with both weekly inflation and burn in mind:

The scheduled token release comes from the only reliable source at this time: https://research.binance.com/en/projects/injective-protocol

After running the iterative calculation, the following graph is obtained:

Due to the crypto/web3 markets being so volatile in combination with only 2 weeks worth of auction results, I opted to plot the graph to absolute values of K (2, 3, 4, 5) to provide a method of calculating future supply without having to predict the average future volume or price per $INJ token. If we take the scenario of burning 2x the weekly inflation (k=2), we can see that the highest circulating supply we will be seeing is actually ~93mil &INJ tokens!

As time goes on, I’ll be able to utilise more real time data to provide better results for this graph and also engage with the amazing Injective community on better ways of improving the method I used.

For now, get ready for Auction round 25 which has a fee basket worth of $186,329.69 and a current bid of 771.48 $INJ ($6,688.73 worth at this time). 🔥

About Injective

Injective is a Web3 cross-chain protocol built for decentralized finance applications. On the Injective exchange, anyone can access, create, and trade unlimited DeFi markets such as futures and perpetuals. Developers can also build cross-chain Ethereum-compatible projects that are lightning fast and achieve instant transaction finality. Injective is backed by a prominent group of stakeholders including Binance, Pantera Capital and Mark Cuban.