we hear a lot about token burns in crypto, but the mechanism behind them is just as important as the burn itself.
with $INJ, the Community BuyBack connects ecosystem revenue with community participation, while permanently removing INJ from supply.
so, what actually happens?
▸ First, the Community BuyBack
participants commit INJ to the BuyBack and receive a proportional share of revenue generated across the Injective ecosystem.
at the end of the event, the committed INJ is permanently burned.
▸ So, Where Does the Revenue Come In?
each participant's share depends on their contribution relative to the total commitment and the revenue available for distribution. it's not a fixed payout.
▸ Now, Here's Where the Supply Squeeze Comes In
the Community BuyBack is one part of Injective's broader tokenomics.
approved through governance proposal IIP-617, the INJ Supply Squeeze reduces the rate at which new INJ enters circulation while working alongside recurring token burns.
- Reduced issuance: less new INJ entering circulation.
- Recurring burns: INJ permanently removed from supply.
both contribute to reducing INJ supply, but in different ways: one reduces the rate of new issuance, while the other permanently removes INJ through burns.
i put together a quick video to walk through how the BuyBack works and how it fits into the bigger picture.
@injective @InjectiveIn
#InjectiveNavratri
Day 7 (Oct 17): Kalaratri
Nav Durga x Injective | Day 7: INJ tokenomics: supply and burn
Today we honour Kalaratri "The dark night", symbol of destroyer of darkness, fear and ignorance.
Today's challenge: Explain the INJ burn mechanism in simple words.
Required format: Short video (under 60 sec)
Day rules:
- Video under 60 seconds.
- Explain the burn mechanism simply and accurately.
Event rules: In the main tweet.
Quote with #InjectiveNavratri.
Tag @injective and @InjectiveIn before 11:59 pm IST today.
