This Monday, the Injective protocol community approved a comprehensive overhaul of its tokenomics through proposal IIP-617, which received an overwhelming 99.89% of the voting power. According to official channels, this update aims to reduce asset issuance and strengthen the buyback-and-burn program to directly impact the INJ token supply.
The reform was approved amidst a backdrop of high volatility, with a token that has suffered significant depreciation relative to its 2024 all-time highs. By aligning lower issuance with the permanent removal of tokens using protocol revenue, Injective aspires to transform its cryptocurrency into one of the most deflationary assets in the market, offsetting the recent decline in Total Value Locked (TVL) within its DeFi ecosystem.
The implementation of the first Injective Exchange-Traded Funds (ETFs), requested by firms such as Canary Capital and Cboe, will be under the spotlight in the coming months. The entry of institutional validators, like Deutsche Telekom, will be key to maintaining network security while the market assesses whether this “supply shock” is sufficient to reverse the bearish price trend and attract new institutional liquidity.
Source: https://x.com/injective/status/2013287204701802940
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