Injective vote overwhelmingly approves Supply Squeeze to cut INJ issuance

Injective’s protocol community on Monday approved a major tokenomics overhaul, passing the Supply Squeeze proposal (IIP-617) with 99.89% support based on staked voting power. The proposal reduces INJ’s native token issuance and preserves the network’s buyback-and-burn program, which uses protocol-generated revenue to permanently remove tokens from circulation.

Injective said it has removed about 6.85 million INJ through burns, and an Injective post on X said the governance changes, which are live, will enable “INJ to become one of the most deflationary assets over time.” The vote comes after a prolonged downturn in INJ’s market price: the token has fallen nearly 80% over the past year and is down more than 90% from its all-time high in March 2024.

CoinGecko data showed INJ was down about 8% on Monday. DefiLlama data showed Injective’s total value locked at $18.67 million, down from peaks above $60 million in 2024. Community reaction on X was mostly optimistic, with users framing the change as a structural shift rather than a short-term market catalyst.

Despite price and TVL declines, Injective has continued to attract institutional engagement in 2025, including July filings by Cboe and Canary Capital for staked INJ ETFs, and has expanded its validator set with entities such as Deutsche Telekom MMS and Korea University, according to announcements.

Key Topics

Crypto, Injective, Inj Token, Supply Squeeze, Staked Etf, Cboe