INJ 3.0: A New Era of Deflationary Tokenomics for Injective

• INJ 3.0 enhances deflationary tokenomics through dynamic supply adjustments and weekly token burn auctions.
• Injective collaborates with Sonic to launch the first cross-chain AI Agent Hub for gaming, DeFi, and social platforms.

Injective has officially launched INJ 3.0, representing a huge step forward in the evolution of their tokenomics. This update is meant to drastically cut the availability of the INJ token until Q1 2026, therefore changing the terrain.

Beyond only a decrease in token supply, INJ 3.0 uses Injective’s special economic architecture to improve programmability, underline its deflationary character, and build a strong ecosystem of decentralized apps (dApps) and financial goods.

INJ 3.0: Everything You Need to Know

What is INJ 3.0?

INJ 3.0 represents the latest evolution of Injective's tokenomics. At its core, the upgrade aims to dramatically decrease the supply of $INJ that continues until Q1 2026.

However, beyond these adjustments, INJ 3.0 builds on… pic.twitter.com/4dYDssF9jN

— Injective (@injective) January 7, 2025

How Injective Innovates with Deflationary Tokenomics 

Fundamentally, Injective sets itself apart from other Layer-1 networks with two important processes. It first burns some of the weekly protocol-generated income. Second, this deflationary activity scales horizontally with the expansion and success of the ecosystem, forming a feedback loop matching the economic objectives of the protocol.

Several important innovations are brought by the INJ 3.0 tokenomics. Held weekly, the Burn Auction is one of the highlights. Participants in the auction bid on a basket of tokens gathered from income earned via Injective’s dApps.

The highest bidder receives the basket, and their INJ bid is permanently removed from circulation. Burning nearly 6.38 million INJ tokens thus far highlights the efficiency of this system.

Dynamic Supply Adjustments and Economic Alignment 

INJ 3.0 also incorporates dynamic supply adjustments—also known as “Supply Rate Bound Tightening.” These changes allow a programmatic reaction to network activity, therefore enabling a faster deflation rate as staking rises.

With almost half of INJ staked now, the network is among the biggest staked ecosystems, hence supporting its deflationary dynamics. The most recent adjustments additionally increased the Supply Rate Change limit from 10% to 50%, therefore allowing faster alignment with economic targets.

Along with the Bitcoin halving, Injective also creates a plan for quarterly supply rate limits lowering. With the lower bound dropped by 25% and the upper bound by 30%, these developments should improve INJ’s deflationary rate by 400%.

Although INJ is swapped hands at about $22.86 at the time of writing, it has had a 13% decline over the last 24 hours, which reflects more general patterns in the crypto market. Still, injective keeps innovation alive.

According to CNF, Injective has teamed with Sonic to create the first cross-chain artificial intelligence Agent Hub, therefore harmonizing the Solana and Injective ecosystems. Targeting gaming, DeFi, and social platforms, this hub allows tokenizing of AI agents, cross-chain asset transfers, and shared ownership.