According to Odaily, Injective has announced that more than 6 million INJ tokens will be destroyed by the end of next week. The announcement was made on platform X, where the company shared its plans for the upcoming token burn.
The move is part of Injective's ongoing efforts to manage the supply of its native tokens. The company has not provided further details about the reasons behind this decision or the potential impact it might have on the token's value.
Token burning is a common practice among cryptocurrency companies. It involves the permanent removal of tokens from circulation, which can help to reduce the overall supply and potentially increase the value of the remaining tokens. However, the effect of token burning on the market value of a cryptocurrency is not always predictable and can depend on a variety of factors.
This is not the first time Injective has burned its tokens. The company has a history of conducting token burns as part of its strategy to manage the supply of INJ tokens. However, the upcoming burn of over 6 million tokens is one of the largest the company has planned to date.
The announcement has sparked interest among the cryptocurrency community, with many speculating about the potential impact of the token burn on the value of INJ. However, until the burn is completed and the market has had time to react, the true impact of this move remains to be seen.