Injective (INJ)

Tokenomics & Utility

What INJ does

INJ has several jobs. It is used to pay network transaction fees, stake with validators, and vote on governance proposals. A token holder can delegate INJ without running a validator. Validators receive rewards for maintaining the network and can face penalties for failing to meet its rules; those penalties can also affect delegated stake. Governance votes can shape network settings and upgrades. (injective.com)

INJ began with an initial supply of 100 million tokens at its October 2020 token-generation event. The original allocation included ecosystem development, community growth, public and private sales, the team, and advisers. The planned unlocks for that initial allocation were completed by January 2024. That history describes the release of the original tokens; the network also has rules for issuing staking rewards and removing tokens from supply. (injective.com)

Injective’s supply model includes token burns, which permanently remove INJ. Its earlier burn auction drew on revenue from participating apps. A later Community BuyBack design lets participants commit INJ in return for a proportional share of a pool of ecosystem revenue; the committed tokens are burned. Governance has also approved changes intended to reduce new issuance. Because issuance and burns both affect supply, the amount removed in any period depends on how those mechanisms operate. (injective.com)