Injective, a decentralized finance (DeFi) platform, has undergone a significant transformation with the ratification of its INJ 3.0 tokenomics update. The community-led decision aims to bolster the deflationary characteristics of the INJ token, marking a fundamental shift in its economic structure.

Key Modifications Enhance Deflationary Features

The approved changes to INJ’s economic framework introduce tighter inflationary parameters, aiming to increase its deflation by a remarkable 400% over the next two years. Previously, INJ operated with wider inflationary boundaries, but the new policy sets the lower boundary at 4% and the upper boundary at 7% for the next two years. This adjustment will be reassessed in 2026 to evaluate its impact and implement necessary adjustments.

Community Support Fuels Transformation

The adjustments garnered overwhelming support from the Injective community, with a resounding 99.99% vote endorsing the move. Eric Chen, CEO of Injective Labs, expressed profound enthusiasm for the community’s overwhelming support, highlighting the widespread consensus behind the transformative upgrade.

Impact on INJ Performance

Despite the strategic changes, INJ has demonstrated resilience in the market, with a 1.5% increase in the last 24 hours, currently priced at $28.54. However, the implementation of the INJ 3.0 tokenomics update is expected to further enhance its performance in the competitive crypto market landscape.

Injective’s adoption of the INJ 3.0 tokenomics update underscores its commitment to fostering a deflationary environment for the INJ token. With tighter inflationary parameters and overwhelming community support, Injective sets a precedent for sustainable growth and innovation in the DeFi sector.