Injective Labs has submitted a governance proposal aimed at dynamically reducing the supply of its native token, $INJ. The proposal, announced via X on Friday, seeks to implement a mechanism that adjusts the token supply in response to market conditions. This move is seen as an attempt to stabilize the token's value amidst increasing market volatility.

However, the broader market sentiment remains pessimistic. Regulatory uncertainties and recent downturns in major cryptocurrencies have cast a shadow over the industry. While Injective's proposal may offer some relief to $INJ holders, the overall outlook for the crypto market continues to be bleak.