“TOKENS BURN LOW, CONFIDENCE GROWS.”
Could Deflation Be the Key to Injective’s Next Growth Phase? The Injective community has adopted an important governance proposal that will alter how the INJ token operates.
On January 19, 2026, the proposal known as IIP-617, or “Supply Squeeze,” was approved with 99.89% of the votes cast. INJ is now formally a perpetually deflationary token as a result of this ruling.
The goal of the new model is to gradually lower the overall supply of INJ. The number of new tokens that can be issued will be limited by Injective.
Simultaneously, the protocol will bolster its current buyback-and-burn program, which utilises network income to purchase INJ from the market and eliminate it forever.
This dual strategy aims to maintain the system’s sustainability while reducing supplies more quickly. According to Injective, this structure encourages active engagement in the ecosystem and promotes long-term network growth.
Since the mainnet launch, Injective has burned about 6.85 million INJ tokens prior to this proposal. The new changes aim to accelerate this trend and position INJ as one of the most deflationary assets in the market over time.
The community’s strong faith in Injective’s long-term goals is demonstrated by the overwhelming approval.
As INJ turns deflationary, could this vote mark the beginning of Injective’s long-term comeback? Even though the governance vote followed a period of INJ price decline, the market’s initial response was calm and more indicative of general market conditions than the plan itself.
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