Welcome to the decentralized Web3 space.
Today I would like to share with you my personal thoughts on the Injective native token, and consider it as an asset to buy for the upcoming bull market.
Let me make it clear that this is purely my opinion, which is based on certain facts, and I and no one else is not responsible for your money.
Always DYOR, and I’ll get started.
History of the creation of $INJ
Injective is an L1 blockchain that specializes in finance and is the fastest and cheapest blockchain in its niche, INJ launched its own token in 2020.
INJ is a multi-functional token that plays a key role in the functioning of the Injective ecosystem.
INJ has several important functions in Injective:
- Governance: INJ holders can vote on proposals to evolve the protocol, influencing the future of Injective.
- Stacking: INJ is used to ensure the security of the Injective network. INJ owners can do steaking of their tokens to earn rewards and protect the network from attacks.
- Transaction Fees: INJ is used to pay transaction fees on the Injective exchange.
- Liquidity incentivization: INJ is used to incentivize users to provide liquidity to the exchange pools. In return, liquidity providers are rewarded in the form of INJ and other tokens.
- Feature access: INJ is used to access Injective’s premium features such as margin trading and synthetic tokens.
INJ plays an important role in making Injective decentralized and efficient. It encourages user participation, secures the network, and fosters an ecosystem.
Here is some more information about INJ:
Total volume: 93.40M INJ
Current price: ~$20 USD (as of July 14, 2024)
Market capitalization: $1.83B USD (as of July 14, 2024)
Injective’s growth in 2023
From the beginning of 2023 to its end, INJ grew by a staggering 2976% in one year according to CoinGecko and INJ was ranked second in the “Geiner of the Year” ranking behind meme coin BONK
Injective’s inEVM and inSVM storage environments launched in 2023 and forever changed the definition of the industry as a whole. Injective is now the only network supporting WASM, EVM and SVM development environments. The launch of a development environment with multiple virtual machines demonstrated Injective’s commitment to expanding the capabilities of its network while increasing its compatibility with Ethereum, Cosmos and Solana.
One of the most important indicators of any blockchain is the number of active wallets
So, in just one year, Injective has seen a flood of over 500,000 active wallets, with an average of 14,000 at the beginning of the year and about 500,000 at the end of the year
Some think that Injective is not a popular blockchain, but remember that numbers never lie.
In the same year 23, there was a huge number of important and game-changing integrations, I don’t see the point in resetting them, you can find everything on the official blog and see all the information in detail.
Burn Auction
On June 7, the Injective project released an official document to explain what the developers are going to do to make the coin, the issue of which, by the way, is not limited, become deflationary. Thus, it is supposed to realize the token burning auction (Burn Auction) and dynamic supply mechanism.
The first of them is conducted according to the following scheme:
- A basket of tokens from participating applications and direct contributions from private users is formed;
- This basket is played out according to the principle of an English auction (a minimum bid is set, and then there is a further step-by-step increase);
- Participants start making bids in INJ;
- The one who makes the highest bid gets the entire basket;
- The winning bid in INJ tokens is burned, and the total supply is thus reduced. The auctions now take place on a weekly basis.
At the end of June 2024, the number of INJ tokens burned exceeded 6 million, equivalent to $126.5 million.
Injective 3.0: Supercharging the $INJ Token and Why It’s a Boon for Investors
Injective recently unveiled a landmark upgrade for its native token, INJ, with the launch of INJ 3.0. This update focuses on dramatically reducing the total supply of INJ, making it one of the most deflationary assets in the blockchain industry. This translates to long-term value injection for the entire Injective ecosystem, making INJ an even more attractive investment proposition.
Unique Tokenomics Advantage
INJ has always stood out for its innovative tokenomics. The Injective Burn Auction, for instance, regularly collects and burns accumulated network fees, effectively reducing the total supply. INJ 2.0 expanded this mechanism to encompass all dApp fees, further accelerating the burn rate.
INJ 3.0: Deflation on Steroids
INJ 3.0 represents the next chapter for Injective. The Injective community overwhelmingly approved a proposal to significantly decrease the supply of INJ over the next two years. This deflation is strategically designed to be even faster based on the amount of INJ staked on the network.
Sound Money for a Sound Ecosystem
“INJ 3.0 ensures $INJ functions as sound money,” says Injective Foundation CEO Jenna Peterson. “Early adopters are rewarded, and new participants are incentivized to join.” This update positions INJ to surpass even Bitcoin’s sound monetary properties.
Flexible and Adaptable Deflation
Injective has increased the deflation rate by a staggering 400%, with a unique mechanism that automatically adjusts based on staking activity. This ensures the system remains stable and secure, with deflation accelerating as more INJ is staked.
A Look to the Future
INJ 3.0 positions Injective for continued growth and innovation. With a deflationary token at its core, INJ is poised to be a frontrunner in the Web3 finance revolution, making it a compelling investment opportunity for anyone looking to get ahead of the curve.
Injecomics
Some information from the official document, for a brief study:
Double Down on Deflation: Dynamic Supply and Strategic Burns
Injective’s ingenious approach to tokenomics employs a two-pronged strategy to combat inflation and foster long-term sustainability:
Dynamic Supply Mechanism: Injective’s mint module intelligently adjusts the supply of INJ based on the network’s bonded-stake ratio, ensuring a responsive and adaptable mechanism that aligns supply with demand and network security needs.
Regular Burn Auctions: INJ’s deflationary prowess is further amplified by its weekly Burn Auctions, where users bid on a basket of tokens using INJ. The winning bid is burned, effectively removing INJ from circulation and permanently reducing the total supply.
INJ 3.0: Unleashing the Power of Deflationary Acceleration
The introduction of INJ 3.0 marked a pivotal moment in Injective’s evolution, introducing groundbreaking enhancements that supercharge the token’s deflationary properties:
Accelerated Supply Adjustments: The Supply Rate Change parameter was increased from 10% to 50%, enabling supply adjustments to react four times faster to changes in the bonded-stake ratio.
Scheduled Supply Rate Decreases: A structured plan to gradually reduce the upper and lower bounds of the Supply Rate over the next two years, culminating in a 400% increase in INJ’s deflation rate.
A Deflationary Feedback Loop: Perpetual Value Appreciation
The synergistic interplay between INJ 3.0’s enhanced supply dynamics and the Burn Auction mechanism creates a powerful deflationary feedback loop:
Reduced Minting: The tightened supply rate bounds and accelerated adjustment rate lead to a decrease in newly minted INJ, curbing inflationary pressures.
Increased Burn Auction Size: As the Injective ecosystem expands, the size of each Burn Auction is set to increase, resulting in more INJ being burned regularly, further reducing the total supply.
This relentless pursuit of deflationary acceleration positions INJ as a sound investment choice, primed for long-term value appreciation.
Dive Deeper into the World of INJ
To fully grasp the intricacies of INJ’s tokenomics and its profound impact on the Injective ecosystem, delve into the comprehensive tokenomics paper
Buy while everyone’s afraid
Well, I’ve given you enough facts and information to see why Injective is the future of decentralized finance, and according to some rumors, INJ may overtake BTC in terms of deflationarity
The last thing I would like to say is that there is no better rule than “Buy when everyone is selling (or afraid to)”, it has worked before, it works now and it will work in the future.
Always study the information personally, do not believe everything that is written on the Internet, do reserch, and never enter cryptocurrency or any other assets to all “cutlet”.
Injective:
- Website: injective.com
- Twitter: x.com/Injective
- Discord: discord.com/invite/injective
- Telegram: t.me/joinininjective
- Injective blog: blog.injective.com
