A burn auction means permanently removing tokens from circulation, meaning they are sent to an address where no one can access or use them. Removing them from circulation is easy because they contain no private keys. This process is irreversible and transparent, allowing you to see how many tokens have been burned.
Injective's ecosystem differs from other blockchains in that it employs a burn auction model that collects fees from its ecosystem and then uses this fee to purchase and burn a portion of the INJ through weekly auctions. The supply decline is gradual, making it easy to see without affecting the coin's value. This clearly demonstrates that Injective's burn auctions build trust in the coin.
Since Injective upgraded its ecosystem, it has Deflation is affecting the rate. We can understand this this way: if the number of tokens in the market is low, the value of the token will increase rapidly, which will manipulate the market. Therefore, it won't take long for Injective to become a deflationary asset because Injective is different from other blockchains, the impact of which we will see in the crypto world.
Injective uses a system to control both coin minting and burning, which determines how many new tokens it can issue and how many tokens it can burn, thus establishing coordination between the two. Injective adjusts the supply based on the value of staking.
In short, we understand that the burn auction process is expanding its ecosystem, which will strengthen Injective's credibility in the market.
@Injective #Injective🔥 #injective $INJ
