An Evaluation of INJ Token Burn Auction

This beautiful journey started in December 2021 when the first ever $INJ burn happened.

40,000 INJ were burned making INJ token officially deflationary!

The Injective Burn Auction has launched on 10th Dec. with a decision that Injective will burn 60% of exchange fees every week, leading to one of the largest token burning ratios in the entire crypto industry alongside a potentially ultrasound deflationary $INJ token

This memorable even gave birth to $INJ token weekly burn auction.

Injective released its largest tokenomics upgrade on 16th August, 2023 which was introduced to increase the amount of INJ burned weekly.

The major reason of INJ 2.0 is to allow all dApps built on Injective to contribute to the $INJ burn auction with no limit on how much they can burn.

Since mainnet launch, Injective has transformed itself into a global powerhouse.

Injective is now the fastest L1 blockchain, catering to a wide array of dApps such as DeFi, NFTs, gaming, LSDs and more.

INJ 2.0 aims to allow all dApps to participate in burns.

Any dApp built on Injective can now even allocate up to 100% of their protocol fees to the auction.

The increased participation from various dApps not only amplifies the potential rewards available for auction but also allows for larger amounts of $INJ tokens to be burned.

The advent of the current crypto industry with the launch of Bitcoin introduced us to the idea of real sound digital money.

The Injective ecosystem takes this one step further by creating an entirely new system that allows for the creation of true ulstrasound money: $INJ.

INJ 2.0 marks a significant milestone in the evolution of finance, creating a more integrated ecosystem powered by $INJ.

Together, the Injective community continues its path towards breaking the barriers of possibility.

To further buttress the impact of this exercise on Injective Blockchain and how serious it is taken, it is great to note that a governance discussion is live to burn the revenue generated from the sales of $INJ domain names!

This is a direct implementation of INJ 2.0, where any dApp can contribute to the burn auction. An on chain proposal will soon follow.

The first ever NFT collection to directly contribute to the $INJ burn auction is launched in November.

Recently, Quants, an NFT project decided to contribute to $INJ token burn. According to them, 5% is all volume on Quant will be burned. On other words, the more Quants get traded, the more tokens get burned. It’s a win for the entire Injective ecosystem

Until now, the Injective community has been burning $INJ tokens since mainnet launch in 2021. Every week a new burn occurs via a innovative burn auction that is entirely decentralized.

But how does the Burn Auction work?

Every week on Wednesday, 60% of fees collected across dApps built on Injective undergo a buy back and burn auction by the community.

With the introduction of INJ 2.0, any dApp on Injective can contribute to the burn process as well.

Here’s how it works!

Fees collected on Injective are put into an auction (For example: let’s say that there is a basket of $100. $50 are in ETH and $50 are 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.

IIP-302 has passed with over 99% of participants voting yes.

This allows revenue from $INJ domain names to be burned, further demonstrating the power of INJ 2.0 which brought the largest tokenomics upgrade yet, dramatically increasing the amount of INJ burned weekly.

As of today, over 5,800,000 total $INJ has been burned since mainnet launch. This is amazing!

Injective is a lightning fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.

Get Started on Injective Blockchain Today!!!

Website: injective.com

Injective Bridge: hub.injective.network/bridge/

Ecosystem dApps: injective.com/ecosystem

Stake $INJ: hub.injective.network/staking

All Official Social Channels: linktr.ee/injective

Testnet Faucet: testnet.faucet.injective.network