Injective approves INJ supply reduction proposal

The Injective community has okayed a governance proposal that shifts INJ into a more aggressive deflationary phase.

A governance proposal that lowers the INJ token’s long-term supply and modifies the network’s token economics has been passed by the Injective community.

The vote concluded on Jan. 19 after four days, with 99.89% of participating voters in favor. The approved changes update Injective’s (INJ) inflation parameters, placing INJ into a more deflationary phase.

Once implemented, new token issuance will decline more rapidly, while existing burn mechanisms will remain in effect. Injective Foundation members disclosed their participation in the proposal, which was submitted as IIP-617.

What the approved changes mean for INJ supply

INJ serves as the core asset that secures the Injective network and coordinates activity across its ecosystem.

Since the mainnet launch, Injective has used recurring token burns to permanently remove INJ from circulation. As of this proposal, approximately 6.85 million INJ have already been burned.

The newly approved framework adjusts issuance rules to further limit new supply entering the market. This operates alongside the Injective Community BuyBack, a program that uses ecosystem-generated revenue to buy INJ on the open market and burn it regularly.

The proposal does not add a new buyback program. Instead, it leans harder on what already exists by cutting issuance directly at the protocol level.

This approach didn’t come out of nowhere. Earlier INJ 3.0 updates set the groundwork. In 2024, governance passed IIP-392 with near-unanimous support, pushing deflation up by 400% and tying policy changes to staking levels.

A year later, further adjustments linked supply reductions to Bitcoin’s (BTC) halving cycle, stretching the contraction over several years. The newly approved proposal simply tightens those settings again.

Injective’s core team has framed the change as a way to lock deflation into the system itself, rather than letting it depend on market conditions or how much the network is being used.

Market reaction and critical views

Even so, price action hasn’t followed cleanly. INJ has traded with heavy volatility through 2025 and into early 2026 and is still down roughly 75% compared to a year ago. That reality has made some traders cautious, despite the sharper supply cuts.

With multiple deflation levers now active at the same time, Injective is pushing INJ toward a more supply-restricted profile. For now, though, price movements continue to reflect broader crypto sentiment more than token mechanics alone.