Injective Community Approves Proposal to Accelerate INJ Supply Reduction

Key Takeaways

• •
  Injective voters approved IIP-617 with 99.89% support, accelerating INJ’s deflationary path.
• •
  The update cuts future issuance while maintaining existing burn and buyback programs.
• •
  Despite tighter supply rules, INJ price action remains driven by wider crypto market trends.

Injective Tightens INJ Supply with New Governance Approval

The Injective community has approved a governance proposal to tighten the long-term supply of its native INJ token and reinforce the network’s deflationary design.

The vote, which wrapped up on January 19 after four days, passed with overwhelming support, drawing 99.89% approval from participating voters. The proposal, submitted as IIP-617, updates inflation parameters on the Injective network, pushing INJ into a more aggressive deflationary phase.

Once the changes are implemented, new INJ issuance will decline faster, while existing burn mechanisms remain unchanged. Members of the Injective Foundation publicly disclosed their participation in the vote.

What the New Parameters Change for the INJ Supply

INJ functions as the backbone of the Injective ecosystem, securing the network through staking and coordinating activity across decentralized applications.

Since the mainnet launch, Injective has consistently reduced circulating supply through scheduled token burns. To date, roughly 6.85 million INJ have been permanently removed from circulation.

The newly approved framework further limits fresh supply entering the market by tightening issuance rules at the protocol level. This works in parallel with the Injective Community Buyback, which uses revenue generated across the ecosystem to repurchase INJ from the open market and burn it on a recurring basis.

Rather than introducing new mechanisms, IIP-617 amplifies existing ones by directly cutting issuance, reinforcing deflation regardless of network usage or market cycles.

Market Response Remains Cautious Despite Deflation Push

The proposal builds on a series of earlier changes. In 2024, governance approved IIP-392, increasing deflationary pressure by 400% and linking supply dynamics to staking participation. Subsequent updates tied supply reductions to Bitcoin’s halving cycle, spreading contraction over multiple years. The latest proposal tightens those settings further.

In July, Injective launched SBET, marking a world-first in onchain digital asset treasuries (DATs) and redefining how companies manage their crypto reserves.

With multiple deflationary levers now operating simultaneously, Injective is positioning INJ as a more supply-constrained asset. For now, however, traders appear to be weighing macro sentiment more heavily than long-term issuance mechanics.