Injective Unveils INJ Supply Squeeze to Enhance Scarcity
Injective's latest initiative is a new supply squeeze aimed at increasing the scarcity and value of its native cryptocurrency, INJ.
Layer-1 blockchain Injective has taken significant steps to enhance the deflationary aspect of its native cryptocurrency, INJ.
After a near-unanimous approval (99.89%) of a proposal known as IIP-617 (INJ Supply Squeeze), the development team unveiled a new tool aimed at reinforcing existing deflationary measures.
The INJ Supply Squeeze
Since the launch of its mainnet in 2021, Injective has sought to increase INJ’s scarcity, aiming to elevate its value. Shortly following the mainnet’s launch, the network instituted frequent token burns. In October 2025, a Community BuyBack mechanism was adopted, both of which aim to decrease the circulating supply of INJ and enhance its long-term price. To date, 6.85 million INJ have been permanently removed from circulation.
The IIP-617 proposal was introduced to strengthen the supply control of INJ coins in the marketplace.
The announcement clarifies that the INJ Supply Squeeze will complement existing deflationary strategies, such as the Community BuyBacks. The team at Injective believes that these mechanisms will fortify INJ’s tokenomics, gradually transforming it into a “structurally enhanced deflationary model.”
Impact on INJ’s Price
Eric Chen, the co-founder of Injective, emphasized the anticipated effects of these deflationary measures on INJ’s overall market performance, stating:
“The INJ Supply Squeeze spearheaded by the Injective community represents a decisive step in the evolution of Injective’s monetary design. By doubling the rate of deflation and pairing it with systematic token buybacks, Injective is reinforcing its scarcity and positioning INJ as a long-term deflationary asset aligned with the growth of the ecosystem.”
Most blockchain initiatives adopting a deflationary model aim to reduce supply and enhance value, yet INJ has yet to witness an appreciable price increase in response to its diverse token-reduction tactics. It is currently priced at $4.64.
However, advancements in other areas, like the staked ETF business, may provide the momentum INJ needs for upward price movement.
Tags: Injective
