INJ 3.0 is a major upgrade in Injective's tokenomics design, aiming to drastically reduce the supply of INJ tokens and promote deflation, while strengthening the development of the dApps ecosystem and decentralized financial products. This upgrade has the following highlights.
+ Dynamic and deflationary supply:
INJ 3.0 takes advantage of Injective's staking system, with more than 50% of the total INJ supply staked. As more INJ are staked, the deflation rate will increase over time. This enhances the deflationary nature of INJ, creating a stronger supply reduction trend over time.
+ INJ Burn Auction:
Each week, a portion of the revenue from Injective's dApps will be auctioned. Bidders will use INJ to participate in this auction, and the winner will receive the entire pool of auctioned assets. After winning, the INJ auctioned will be burned, removing it from the total supply of the token. This creates a mechanism for continuously reducing the supply and increasing the value of the INJ token as dApp revenue increases.
+ Parameter Adjustment (Supply Rate Bound Tightening):
INJ 3.0 has increased the supply rate change from 10% to 50%, allowing the network to quickly respond to ecosystem activity. This helps maintain consistency with the tokenomics framework and increases deflation. One of the unique features of INJ 3.0 is the establishment of a quarterly supply reduction schedule. Over two years, the supply rate limit will decrease from 10% to 7% (upper limit) and from 5% to 4% (lower limit). These changes have the effect of increasing deflation, with the deflation rate expected to increase to 400%.