Injective introduces the latest enhancement to its revolutionary burn auction. Following the success of INJ 2.0, which allowed any dApp or protocol to contribute transaction fees to the weekly burn auction, this update brings new changes and allows everyone - from dApps to protocols, and now individual community members - to contribute funds to the weekly burn auction.

This latest iteration marks a significant step towards inclusivity, opening the doors to a wider range of participants, including protocols, dApps and users, to participate in the burn auction.

The Evolution of Injective's Weekly Burn Auctions

The weekly Injective Burn Auction debuted in December 2021 as a new addition to the ecosystem. Initially, all exchange dApps on Injective contributed 60% of their transaction fees to a weekly auction, where participants could bid the entire amount collected during the week. The winning bid in INJ for the auction basket was then burned.

This mechanism was effectively used to collect the total cost of activity on DEXs deployed on Injective and benefited all stakeholders.

INJ 2.0

However, as Injective evolved into a blockchain built for finance, there was a need to adapt the mechanism to accommodate the growing diversity of dApps. In August 2023, the Burn Auction underwent its first update, allowing any dApp, regardless of its nature, to contribute. This expansion allowed a variety of apps, including lending platforms, NFT marketplaces, and fortune telling apps, to participate in Burn.

Moreover, the protocols were able to allocate any desired amount to the auction - not only 60%, but even up to 100% of the fees they collected.

This provided developers with greater flexibility, allowing those experiencing higher growth rates in their protocols to not only celebrate their success individually, but also highlight it for the entire ecosystem.