Injective Votes On Major Upgrade To Make INJ Even More Deflationary: Will Prices Recover?
20 April 2024 - 12:00PM
NEWSBTC
Injective Protocol, a blockchain for decentralized finance (DeFi)
and derivatives trading, is voting on a proposal to
significantly reshape the platform’s tokenomics and introduce a new
era dubbed Injective 3.0. According to Injective, through a post on
April 19, the proposal is now open for voting via the Injective
Hub. For the next four days, stakers and validators are free to
participate. Community Voting On Injective 3.0 Over the
months since launching in 2023, Injective caught the crypto
community’s attention. The team aims to launch a platform for users
to launch DeFi-focused protocols in a low-cost, scalable, and yet
Ethereum-compatible environment. Though INJ, the native currency of
the platform, remains one of the top performers, changes introduced
by Injective 3.0 will likely push prices even higher. According to
developers, Injective 3.0 aims to make INJ a deflationary asset. A
big part of this will be to reduce token minting by controlling the
rate of token creation. If the community approves what’s laid
out in the proposal, the team will change on-chain parameters to
slow down token minting. Related Reading: Crypto Expert
Predicts A Narrative Shift Post-Bitcoin Halving At the same time,
Injective 3.0 plans to make INJ’s inflation rate more responsive to
staking. Under this model, inflation will slow down as more INJ is
locked away via staking, making the coin scarcer. Proposers
predict the network to be more robust and secure if INJ becomes
more deflationary. Usually, token prices of scarce assets tend to
be higher. However, it should be noted that changes to tokenomics
don’t immediately lead to favorable price repricing. For prices to
soar, there must be utility, driven mainly by community interest.
Millions Of INJ Burned, Will Prices Break $30? Injective 2.0 is
currently live following its activation in August 2023. Under the
current regime, there is a token auction burn, where decentralized
applications (dapps) running on the platform are free to
participate in token burning. According to the Injective Protocol,
over 5.9 million INJ have been withdrawn. So far, INJ remains under
pressure, sliding down, shedding 50% from March 2024 highs. The
coin has been moving horizontally in the past few trading sessions.
However, it is under immense selling and within the April 12 bear
bar. Related Reading: Bitcoin Halving Could Catalyzed $100,000
Price Surge: Bitwise CEO The level at $30 is a crucial resistance
level. Conversely, if INJ prices dip below this week’s lows at $23,
the coin will slip towards April 13 lows of around $18. Feature
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