Injective has unveiled INJ 2.0, its most comprehensive tokenomics upgrade to date, designed to significantly increase the weekly burn rate of INJ tokens while fostering a resilient, community-driven economy.
A Quantum Leap for dApps on Injective
Decentralized applications (dApps) built on Injective can now participate in INJ burn auctions, autonomously deciding what percentage of their generated fees to allocate toward token burns. This shift empowers dApps to contribute to a sustainable, INJ-powered economy that leverages the full value of the Injective ecosystem.
Evolution of Burn Auction Mechanism
Since its mainnet launch, Injective pioneered the Token Burn Auction concept, restructuring protocol fees into collective value. Initially, the mechanism allocated 60% of exchange dApp fees to a bidding basket, with winning bids funding the basket and the proceeds being burned weekly.
Key features of the original model:
- Community-driven incentives: Traders and dApps benefit from participation.
- Permanent deflation: Over 5.7 million INJ burned to date.
- Dynamic rewards: Winning bidders gain exclusive access to weekly auction yields.
INJ Burn 2.0: Expanding the Scope
As Injective evolved into the fastest Layer 1 blockchain with diverse dApps (DeFi, NFTs, gaming, etc.), the burn mechanism required scaling. INJ 2.0 introduces:
- Universal dApp Participation: Any protocol (lending, prediction markets, etc.) can join burn auctions.
- Flexible Fee Allocation: dApps may allocate 1–100% of fees to the burn basket.
- Enhanced Developer Docs: Streamlined integration guides for new dApps.
Benefits of INJ 2.0
- Broader utility for INJ tokens.
- Increased burn volume via multi-protocol participation.
- Stronger ecosystem synergy through shared economic incentives.
The Future of INJ: A New Economic Paradigm
INJ 2.0 transcends technical upgrades—it’s a philosophical commitment to decentralized collaboration. By enabling ultrasonic money (a deflationary asset with expanding utility), Injective redefines value accrual in Web3.
👉 Explore Injective’s Ecosystem
FAQs
Q1: How does INJ 2.0 benefit token holders?
A1: Increased burns reduce supply, potentially boosting token value while broadening use cases.
Q2: Can non-exchange dApps participate in burns?
A2: Yes. Lending platforms, NFT markets, and more can now allocate fees to burns.
Q3: What’s the minimum fee percentage a dApp must commit?
A3: No minimum—dApps choose their contribution (e.g., 10%, 50%, etc.).
Q4: How often do burns occur?
A4: Weekly auctions ensure continuous deflation.
Q5: Where can developers access integration guides?
A5: Injective’s upgraded documentation provides step-by-step instructions.