5,643 $INJ, or approximately $196,000, were burned today 🔥🔥🔥
Marking one of the largest token burns in the history of #Injective🔥
This beautiful journey started on 15th Dec. 2021 when the first ever INJ burn happened.
40,000 INJ were burned making INJ token officially deflationary!
This memorable event gave birth to $INJ token weekly burn auction.
-Since mainnet launch, Injective has transformed itself into a global powerhouse.
Injective is now the fastest L1 blockchain, catering to a wide array of dApps such as #DeFi , #NFT , gaming, LSDs and more.
INJ 2.0 aims to allow all dApps to participate in burns.
-Any #dApp built on Injective can now even allocate up to 100% of their protocol fees to the auction.
The increased participation from various dApps not only amplifies the potential rewards available for auction but also allows for larger amounts of $INJ tokens to be burned.
Until now, the Injective community has been burning INJ tokens since mainnet launch in 2021. Every week a new burn occurs via a innovative burn auction that is entirely decentralized.
But how does the Burn Auction work?
Every week on Wednesday, 60% of fees collected across dApps built on Injective undergo a buy back and burn auction by the #community.
-Fees collected on Injective are put into an auction (For example: let’s say that there is a basket of $100. 50 are in ETH and 50 are in WBTC)
Users can bid using only INJ (let’s say User A bids $90 in INJ and User B bids 95 in INJ)
User B will win the bid with 95.
-Effectively, User B is able to own a $100 asset basket for only 95 which would potentially open up arbitrage opportunities.
The 95 paid in INJ will be immediately burned.
A new auction period will begin as soon as a burn is completed.
Over 5,800,000 total $INJ has been burned since mainnet launch. This is amazing!