Injective Introduces the INJ Supply Squeeze, Doubling Token Deflation - Chainwire

20Jan

Injective Introduces the INJ Supply Squeeze, Doubling Token Deflation

New York, NY, USA, January 20th, 2026, Chainwire

The layer-1 blockchain for finance is permanently accelerating its native INJ token supply reduction.

Injective, the blockchain built for finance, today announced the introduction of the INJ Supply Squeeze, a major update to the network’s monetary framework that permanently increases the rate of INJ supply reduction. Once implemented onchain, the changes are expected to double the rate of INJ deflation, reinforcing scarcity as a defining property of the asset.

The INJ Supply Squeeze advances INJ into a new deflationary phase by tightening issuance dynamics while working in tandem with Injective’s existing Community BuyBack mechanism. Together, reduced issuance and recurring token burns strengthen long term supply contraction and move INJ toward a structurally enhanced deflationary monetary model.

Since the launch of Injective mainnet, the network has introduced mechanisms designed to permanently reduce INJ supply through regular token burns. These mechanisms were later expanded to allow applications across the ecosystem to directly contribute to ongoing supply reduction. To date, approximately 6.85 million INJ has been permanently removed from circulation.

The newly introduced framework builds on this foundation by accelerating net supply contraction at the protocol level. By reinforcing deflation as a core design principle, Injective strengthens INJ’s role as the economic anchor of the network and aligns long-term token dynamics with sustained ecosystem growth.

In parallel, Injective’s Community BuyBack continues to play a complementary role in reducing total supply. Every month, ecosystem-generated revenue facilitates on-chain buyback and burn events that permanently remove INJ from circulation. Combined with the updated framework, these recurring burns compound the deflationary effects of reduced issuance and tighten the link between protocol usage and token value accrual.

“The INJ Supply Squeeze spearheaded by the Injective community represents a decisive step in the evolution of Injective’s monetary design,” said Eric Chen, co-founder of Injective. “By doubling the rate of deflation and pairing it with systematic tokens buybacks, Injective is reinforcing its scarcity and positioning INJ as a long term deflationary asset aligned with the growth of the ecosystem.”

With the introduction of the INJ Supply Squeeze, Injective continues to advance its vision of building a blockchain optimized for financial applications where economic design, security, and long-term sustainability are deeply aligned.

About Injective

Injective is the interoperable layer one (L1) blockchain operating at the intersection of DeFi and TradFi. Its ecosystem offers a full suite of products for developers and end-users, including institutional grade assets backed by the world’s most stable financial instruments as well as powerful plug-and-play modules to create advanced Web3 finance applications. As the premier decentralized partner for institutions, Injective is a top L1 based on protocol value and has facilitated over 1 billion transactions on-chain. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera, and Mark Cuban.