The Injective community has approved a significant change to the network’s token economics, voting overwhelmingly in favor of a proposal aimed at reducing the long-term supply of INJ tokens. The governance decision reflects a strategic effort to strengthen scarcity and reshape issuance mechanics during a challenging market period.
The governance proposal, known as IIP-617 passed with 99.89% approval based on staked voting power. The update reduces ongoing token issuance while preserving the network’s buyback-and-burn mechanism, which uses protocol revenue to permanently remove INJ from circulation.
To date, Injective has already eliminated approximately 6.85 million INJ through burns. The new framework is designed to accelerate this process by pairing lower issuance rates with recurring buybacks, reinforcing deflationary pressure over time.
The vote comes as INJ continues to face price pressure. Over the past year, the token has declined nearly 80% and remains more than 90% below its 2024 peak. Despite this, community sentiment suggests the governance change is viewed as a structural improvement, not a short-term price catalyst.
Injective’s decentralized finance ecosystem currently holds about $18.7 million in total value locked, down from prior highs. Still, institutional engagement continues, including ETF-related filings, new validators, and growing participation from enterprises and academic institutions, signaling ongoing development beyond token price movements.
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