LIVE
There are less than 10 hours left until the INJ burn auction, where over 6 million tokens will be burned so far.
But what is the INJ burn auction and how does it actually work? Providing an easy to follow guide to burning INJ 📚
How the $INJ burn auction works: ELI5
💰 Collecting protocol revenue: The on-chain auction module on Injective collects protocol revenue from various dApps in the Injective ecosystem as well as user contributions. All collected revenue goes into a special pool of funds called the auction fund.
🏇 Betting: This special pool is auctioned weekly, and anyone can bid on a basket of assets using $INJ and win the entire auction fund. This provides potential arbitrage opportunities for participating competitors. For example, a user can buy $1000 worth of USDT with $900 of INJ
🏆 Win and Burn: The winner receives the entire auction fund in exchange for the bid they made in INJ. INJ used to win auctions are automatically burned, meaning the INJ tokens are gone forever.
🥷 Joint Community Effort: Burn auctions reduce the total amount of INJ and encourage community participation. This keeps the ecosystem active and engaged as people look to bid and win auctions while helping to reduce the total amount of INJ in existence.
⚡ Lasting Growth: As Injective protocol revenue grows, more assets are added to the auction fund, leading to larger INJ auctions and burns. This creates a dynamic system where larger pools of assets are auctioned and larger amounts of INJ are burned. Win-win for all parties!
💡 INJ Burns has been growing in recent months, with protocol revenue continuing to grow due to the overall growth of the Injective ecosystem. So as the ecosystem and community win, Injective wins too!
