Injective Unveils INJ 3.0: A New Era in Deflationary Tokenomics
Injective, a leading Layer-1 network, has officially launched INJ 3.0, a significant upgrade to its tokenomics. This update marks a major milestone in the evolution of the INJ token, with a focus on dynamic supply adjustments and weekly token burn auctions.
Whales Accumulate Bitcoin, Injective Innovates with Deflationary Tokenomics
At its core, INJ 3.0 aims to drastically reduce the supply of INJ tokens until Q1 2026, creating a more deflationary environment. This is achieved through two key processes: burning a portion of the weekly protocol-generated income and scaling deflationary activity with the expansion and success of the ecosystem. This feedback loop aligns with the economic objectives of the protocol, setting Injective apart from other Layer-1 networks.
Key Innovations in INJ 3.0 Tokenomics
The INJ 3.0 tokenomics introduces several important innovations, including:
* Weekly Burn Auctions: Participants bid on a basket of tokens gathered from income earned via Injective’s dApps. The highest bidder receives the basket, and their INJ bid is permanently removed from circulation. This system has already burned nearly 6.38 million INJ tokens. * Dynamic Supply Adjustments: Also known as “Supply Rate Bound Tightening,” these changes allow for a programmatic reaction to network activity, enabling a faster deflation rate as staking rises. With almost half of INJ staked, the network is among the largest staked ecosystems, supporting its deflationary dynamics.
Economic Alignment and Supply Rate Limits
The recent adjustments have increased the Supply Rate Change limit from 10% to 50%, allowing for faster alignment with economic targets. Additionally, Injective has planned quarterly supply rate limits lowering, with the lower bound dropped by 25% and the upper bound by 30%. These developments are expected to improve INJ’s deflationary rate by 400%.
Injective Partners with Sonic to Launch Cross-Chain AI Agent Hub
In another exciting development, Injective has collaborated with Sonic to launch the first cross-chain AI Agent Hub for gaming, DeFi, and social platforms. This hub allows for the tokenization of AI agents, cross-chain asset transfers, and shared ownership, harmonizing the Solana and Injective ecosystems.
Conclusion
The launch of INJ 3.0 marks a significant milestone in the evolution of Injective’s tokenomics. With its focus on deflationary tokenomics, dynamic supply adjustments, and weekly token burn auctions, INJ 3.0 is poised to create a more sustainable and robust ecosystem. As the crypto market continues to evolve, Injective’s innovative approach is sure to make waves in the industry.
Source: Crypto-news-flash.com
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