- Injective clears ‘supply squeeze’ with 99% vote, doubling token supply reduction rate.
- The new plan cuts emissions and increases buybacks, tightening INJ supply significantly.
- INJ price depends on broader market trends despite strong deflationary measures.
Injective Protocol has officially greenlit its aggressive “supply squeeze” proposal, with nearly unanimous support from the community. The vote reached 99.89% in favor, signaling strong alignment on reducing the INJ token supply. This move is designed to make INJ one of the most deflationary assets in the crypto space over time. As the plan goes live, traders and investors are now asking how the changes will impact token value and market dynamics.
What Does the Supply Squeeze Means for INJ?
The proposal, known as IIP-617, aims to double the rate of INJ token supply reduction. This is part of a broader upgrade to the network’s tokenomics, complementing the existing community buyback program. Injective launched with 100 million INJ tokens, serving as the ecosystem’s governance token. Annual emissions fluctuate between 5% and 10%, depending on the staking ratio, which sits near 85%.
Previously, Injective relied on collected fees to buy back tokens. Over 6.8 million INJ have already been removed through this mechanism. The new plan takes the deflation strategy further. Emissions will be cut in half while buyback activity ramps up, tightening INJ’s supply significantly. If executed properly, these measures could enhance scarcity and potentially drive value accrual over time.
The strategy mirrors similar efforts by other chains, though results have varied. Networks like HYPE and PUMP often show token value increases from aggressive buybacks. Others, such as Jupiter, argue these programs can waste resources if prices fail to respond. Whether INJ’s dual approach will deliver measurable price growth remains uncertain. Market participants will watch closely as the plan unfolds.
What Next for INJ?
The community now waits to see if market performance will catch up to structural upgrades. Reversing the supply trajectory is a strong long-term signal, but short-term market behavior remains uncertain. Traders should watch how INJ responds to Bitcoin and broader altcoin trends. If the market strengthens, the supply squeeze could amplify gains, but weaker sentiment may cap upside potential.
The new deflationary measures create a clear framework for token scarcity. Doubling the supply reduction while continuing buybacks positions INJ as one of the tighter-supply governance tokens. These changes may attract both retail and institutional interest, particularly from those seeking assets with deflationary mechanics. Meanwhile, price action will depend heavily on market momentum and demand for INJ across spot and futures markets.
Investors should monitor support levels, futures activity, and broader sentiment for clues on INJ’s next move. The proposal gives Injective a structural advantage, but price action must follow for the benefits to materialize. Strong community backing signals confidence, but market dynamics remain the ultimate driver. INJ’s journey after the supply squeeze will reveal whether deflationary mechanics can translate into sustained value growth.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed