Announced a massive upgrade for Injective’s tokenomics. All dApps can now contribute to INJ burn auctions. After the announcement, the altcoin price started to rise from the bottoms.
Burn program announcement triggered recovery in altcoin price
Claiming to be the fastest L1 Blockchain, Injective has announced the release of its biggest tokenomics upgrade. The upgrade is called INJ Burn 2.0. This upgrade will enable any dApp on the altcoin project to contribute to the auctions. Thus, it will spread the benefits of the token burning mechanism to a wider range of protocols. Regarding the subject, Injective made the following announcement on account X:
Injective is releasing its biggest tokenomic upgrade today that could significantly increase the amount of INJ burned weekly. Now all dApps built on Injective can contribute to the INJ burn auction with no limits on how much they can burn.
1/ Injective today is releasing its largest tokenomics upgrade yet which can dramatically increase the amount of INJ burned weekly.
Now all dApps built on Injective can contribute to the $INJ burn auction with no limit on how much they can burn.https://t.co/VCoc2lSjaA
— Injective 🥷 (@Injective_) August 16, 2023
cryptocoin.com As we mentioned, after the announcement in question, the altcoin price started to rise. INJ traded in the red zone at $7,022 and rallied over 4% to as high as $7.4. However, he later gave back some of his earnings. INJ is changing hands at $7.21 at press time, down about 2% on a daily basis.
INJ 4-hour price chart. Source: CoinMarketCapWhat does the program mean for altcoin?
All protocols have the option to allocate the amount they want to contribute to the auction. They even have the opportunity to allocate up to 100% of the fees they collect to the auction basket. This move aims to create a more robust on-chain economy powered by INJ. Because burn auctions can now extract value from any dApp in the rapidly growing Injective ecosystem.
Previously, the Token Burn Auction auctioned 60% of all fees collected on exchange dApps built on Injective and then burned the tokens used to pay for the auction basket. During the weekly burn event, each exchange dApp diverted 60% of its transaction fees to an auction basket, giving community members the opportunity to compete for all of that week’s earnings through their bids.
Injective has burned more than 5.7 million INJs so far
Payments for the auction basket were burned immediately when the auction ended. Thus, the altcoin project has reduced the overall token supply. Since its inception, Injective has burned more than 5.7 million INJ forever with this auction model. This massive upgrade holds significant promise for the Injective community as a whole.
The altcoin project unlocks a new level of utility for the native INJ token by enabling a wider range of uses to be integrated into the undo and burn mechanism. The increased participation of various dApps increases the potential prizes available for auction. It also allows larger quantities of INJ tokens to be burned.
