#injective $INJ INJ’s long-term value rests on a simple but powerful principle: a token becomes more meaningful when its supply shrinks in response to real economic activity. Injective’s shift to a deflationary structure under INJ 3.0 transforms the token from a standard network asset into an economic instrument that benefits directly from the protocol’s growth. Instead of relying on inflation to reward validators, Injective links value accrual to usage, aligning scarcity with ecosystem expansion.

At the center of this model is the weekly buyback-and-burn mechanism. Sixty percent of all fees generated across Injective’s dApps are collected, used to purchase INJ from the open market, and permanently burned. This creates a predictable cycle where more activity leads to faster reduction in circulating supply. As the ecosystem matures, the burn becomes a structural force that shapes INJ’s monetary curve.

The supply dynamics shift noticeably under this system. Many networks create constant inflation to incentivize stakers, which introduces ongoing dilution. Injective reverses that pressure. When activity is strong, the burn outpaces issuance, tightening supply while demand from staking, governance, and ecosystem participation remains in place. This creates a scenario where long-term scarcity becomes mathematically embedded rather than aspirational.@Injective