Why Injective’s token burn amount matters for the ecosystem’s future
The Injective Overview - January 13, 2025
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Injective By the Numbers
$INJ price: $18.94 (-6.14%)
Token market cap: $1.85B (-6.1%)
Total token holders: 50.3K (-0.2%)
Total $INJ staked: 57.02M (-0.26%)
Staking APR: 11.74% (+1.21%)
Total validators: 170 (+0.59%)
Injective daily trading volume: $54.47M (+13.88%)
The percentages and metrics are calculated from its change over a 14-day time frame, unless noted otherwise.
Injecting in the biggest developments
Highlighting some of the biggest announcements from Injective.
🥷What’s happening: Injective held its 183rd burn auction round. It ended on January 8, 2025 with 12,427.06 INJ, or $262,743, to be burnt. To date, the total Injective burned is about 6.4 million INJ tokens, worth about $121.417 million.
🥷Why it matters: Injective’s burn auction is a key component of its ecosystem. It aims to remove INJ tokens from circulation in a systematic way via a deflationary mechanism. Participants can bid in weekly auctions using INJ to win a basket of assets contributed by various protocols and decentralized applications across the Injective ecosystem. The winning bid amount is then permanently burned and reduces the total token supply.
Since the burn auction reduces the circulating supply of INJ, this initiative aligns with Injective’s goal to create deflationary properties for its token, which in turn can drive long-term value and promote more onchain activity. Since this initiative scales with the ecosystem’s success, more contributions can lead to larger auctions and increase its amount of tokens burnt.
“Currently, INJ is one of the largest staked networks with over 50% of the supply staked,” the team stated in a post. “This allows the rate of supply reduction to increase over time.”
By integrating applications, protocols, and users, the mechanism strengthens participation and aligns incentives across the Injective network. In addition, the burn auction promotes individual contributions to further democratized access to the auction. This means the use of native modules like the exchange and auction modules can prove Injective’s ability to plug-and-play into financial use cases could lead to user and developer adoption alike.
This is a part of Injective’s greater vision, INJ 3.0, which is an upgrade that aims to “dramatically decrease” the supply of its token until Q1 2026, the team stated. It builds on Injective’s token economic design in order to enhance its deflationary nature and foster the growth of an ecosystem powered by decentralized applications and financial products alike.
🥷 The bigger picture: Injective's burn auction is part of the network’s robust tokenomics model that aims to reward ecosystem growth while driving token scarcity. While the ecosystem has been doing these for a while, it continues to point to more sustainable, long-term value.
Participants can also look to directly shape the protocol's future, while benefiting from its growth. As the ecosystem gains new dApps and community engagement, the burn mechanism can scale in a way that creates a cycle of user experimentation and deflation.
Expanding its financial ecosystem
Updates on the latest network of dApps, validators, builders and more helping Injective expand its financial use cases.
Injective released an article about AI agents and its role in integrating into finance
TVL on Injective hit $49.6M on Jan. 9, an increase of about 150% the year, according to Artemis data
Neptune Finance hit new high of $9.4M on Jan. 7 in borrowed assets for its lending market (shown below)
Source: DefiLlama
Explore Injective’s institutional overview here
Exploring the meme landscape
Listen to this X space about AI agents on Injective and its impact for memecoins
Ninja Blaze, a web3 gaming platform built on Injective, released details about its upcoming token sale
NAPEJAS saw $6.65K in volume, a 7,344.88% increase WoW for the NFT collection, according to DappRadar
The Injective community voted via an onchain governance proposal to make AGENT an AI mascot for the ecosystem
From the Injective ninjas 🥷
Highlighting the builders, communities and ecosystem players within the Injective blockchain.
Injective Proposals were made recently to make AGENT the mascot AI and to settle the FTM/USDT PERP market - read about it here
Learn about AI agents and its impact on Injective via a YouTube video by StudyWithEndurance
Neptune Finance released a December recap including its v2 release of its protocol and buyback program
For more Injective updates, check out its blog here.
Dive deeper into Injective
Want to get involved in the ecosystem? Developers can check out documentation, GitHub and more here. Find the latest job postings here or get involved at an event below.
Injective’s next burn auction ends Jan. 15 - participate here
Check out a list of ongoing Injective governance proposals here
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This information is for entertainment purposes only. It should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research.