Why do you think that minting extra $INJ will dilute the price?
Do you ever believe in burning?
I know this is confusing but I want to explain the burning mechanism Injective has in place to control inflation.
I want to end this logic
Read through 👇
Injective have a global orderbook with a fixed tax in which exchanges who originate orders into the Injective global orderbook on Injective's exchange protocol are rewarded with 40% of the trading fee arising from orders that they source.
0.1% for makers and 0.2% for takers.
As a component of the official mainnet launch approved by the Injective community, 60% of the exchange fees collected within the protocol will undergo a weekly buyback and burn process managed through a community-led auction. Here's how the auction functions:
Once fees are accrued on Injective, they are made available for auction.
Let me use a simple example: let's say there is a pool of $100, consisting of $50 in ETH and $50 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.
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Tell me what you understand under the comment session.
