Deflationary Power: How the Deflationary Burn Mechanism of INJ Tokens Supports Its Value in the Long Term?

In the cryptocurrency space, deflationary mechanisms are an important design to support the long-term value of assets. The INJ token has built a strong value closed loop through its unique deflationary burn model, providing long-term confidence to holders.

The core of INJ's deflationary mechanism lies in "revenue sharing and destruction." This model directly links economic activities within the network to the scarcity of the token. Specifically, a portion of the transaction fees generated on the Injective chain, as well as a portion of the revenue from major applications in the ecosystem (such as Helix and Mito), will be regularly used to repurchase INJ tokens on the open market and destroy them. This means that the more active the entire Injective ecosystem is, and the larger the trading volume, the more INJ will be destroyed.

This design creates a self-reinforcing value cycle. As the ecosystem continues to develop, the pressure to destroy INJ will continue to increase, thereby continuously reducing its circulating supply. When market demand remains stable or grows, the dynamic changes in supply and demand will provide solid intrinsic support for the price of INJ. This is analogous to the logic used by traditional companies to enhance per-share value through stock buybacks. @Injective #Injective $INJ

Therefore, the deflationary burn mechanism of INJ is not just a simple destruction, but a sophisticated economic system that converts the dividends of ecosystem growth into wealth for token holders. It incentivizes users, developers, and investors to jointly build a prosperous ecosystem, as everyone's interests are closely tied to the long-term scarcity of INJ.