On Monday, the Injective protocol community approved a major tokenomics overhaul, passing the Supply Squeeze proposal (IIP-617) with 99.89% support by staked voting power (Supply Squeeze proposal), and the change reduces native token issuance while preserving the buyback-and-burn program. (Ed. note: the vote counted staked voting power at 99.89% support.)
The network said it has removed about 6.85 million INJ from circulation through burns and plans to accelerate removal by aligning lower issuance with recurring buybacks. Injective posted that the governance changes are live and will enable on X “INJ to become one of the most deflationary assets over time.”
INJ’s market performance has weakened, falling nearly 80% over the past year and more than 90% below its March 2024 all-time high. The token was down about 8% on Monday, according to CoinGecko data.
Community reaction on X was mostly optimistic, with users calling the vote a structural change rather than a short-term catalyst. Injective’s total value locked stood near $18.7 million, down from peaks above $60 million, according to DefiLlama data.
The network continued to attract institutional interest in 2025, including staked-ETF filings by Cboe and Canary Capital, and it expanded its validator set. Notable additions include Deutsche Telekom MMS, while Korea University began operating a validator and conducting on-chain research (announcement).
