Injective (INJ) goes deflationary as inflation-reduction proposal gets 99% approval

Layer1 blockchain Injective introduced proposal IIP-392 to reduce INJ’s inflation rate as the project aims to be among the “most deflationary” cryptocurrencies.

📣 Reminder to all $INJ stakers and validators:

The IIP-392 governance proposal which is set to make $INJ one of the most deflationary tokens ever is live!

Voting ends on April 23rd 🗓️ https://t.co/VkECpBTjAz

— Injective 🥷 (@injective) April 22, 2024

Injective proposal receives massive support

Data shows the new proposal has received 99.99% YES votes less than 20 hours before the voting closes.

Source – Injective

The tokenomics upgrade marks a vital moment for the altcoin as it attains the deflationary status.

Participants have up to April 23 to vote for Injective’s new coin mining approach.

Meanwhile, the project has implemented various deflationary-centered mechanisms since its launch, including scheduled token burns.

The latest proposal wants to make Injective among the most deflationary coins to even surpass Bitcoin (BTC).

The asset’s inflationary rate remains crucial in shaping its price trajectory. Tokens subjected to high inflation decrease in value with time as supply magnifies.

Deflationary crypto projects have control over their overall token supply. Events like the latest Bitcoin halving, hard caps, and token burns help maintain the demand-supply balance.

Injective will lower inflation by balancing incentives for participants and INJ scarcity to attract and retain users on the blockchain.

Increasing INJ’s inflation parameter to 0.5 will enable the altcoin to respond to staking fluctuations swiftly and ensure the protocol’s resilience.

INJ price outlook

Injective changed hands at $28.59 at press time, up 1.08% over the past day.

INJ 1D Chart on Coinmarketcap

The altcoin exhibits optimism as the proposed upgrade receives unanimous support from validators and stakeholders.

Furthermore, real-world initiatives positions Injective for amplified adoption and INJ price growth in the upcoming months.

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