Injective is making a big breakthrough with a real buy-back & burn program that has burned over 6.78 million INJ tokens, worth around US$ 32 million. This signals that the deflationary model in Injective is truly working, not just a promise from the white paper. Trading, staking, and using dApps from the Injective network are part of that activity that directly contributes to the reduction of token supply. And when the supply continues to decrease while adoption and demand remain (or increase), the economic foundation of INJ could strengthen significantly. The effectiveness of deflation still depends on the following two factors: transaction volume / on-chain activity and real interest in INJ (from traders, institutions, or ecosystem users).
In the last quarter, data showed that the total value locked (TVL) in Injective had risen by about 14% as an initial response to the buy-back launch.
deflation alone is not enough. Without liquidity input, consistent transaction volume, and ongoing relevant application adoption, even supply could decrease, but if demand weakens, downward pressure could still continue.
