توكنوميكس Injective (INJ)

Injective Protocol (INJ) features a sophisticated tokenomics model designed to balance network security, incentivize participation, and drive ecosystem growth. Below is a comprehensive breakdown of its token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms.

Issuance Mechanism

• Initial Supply: INJ was launched as an ERC-20 token on Ethereum with a total supply of 100 million tokens.
• Migration: Tokens are migrated from Ethereum to the Injective mainnet via the Injective Bridge. As of late 2023, ~66.73 million ERC-20 INJ have been migrated to the native chain.
• Inflation/Deflation: The supply is dynamically managed through:
  • Inflation: New tokens are minted as staking rewards. The inflation rate is variable, initially set at 7% and now ranging between 5% and 10%, depending on the staking ratio (target: 85% staked).
  • Deflation: INJ features a robust burn mechanism. 60% of protocol fees are collected and auctioned weekly; the winning INJ bid is burned, reducing supply. The burn mechanism has evolved (INJ 2.0) to allow all dApps to contribute to burn auctions, not just exchange dApps.

Allocation Mechanism

The initial allocation of INJ tokens is as follows:

Usage and Incentive Mechanisms

INJ is a multi-utility token with the following core functions:

• Staking & Network Security: INJ is staked by validators and delegators to secure the network (Delegated Proof-of-Stake, DPoS). Stakers earn inflationary rewards and a share of protocol fees.
• Governance: INJ holders can propose and vote on protocol upgrades and parameter changes. 500 INJ is required to submit a proposal.
• Fee Payment: Used to pay gas fees for transactions and as a medium of exchange across the Injective ecosystem (DEXs, NFT marketplaces, lending protocols).
• Burn Auctions: 60% of protocol fees are auctioned weekly; the winning INJ bid is burned, making the token deflationary over time.
• Trade & Earn: 7 million INJ allocated to incentivize trading activity on the platform.
• Liquidity Incentives: The Open Liquidity Program (OLP) distributes INJ to liquidity providers in 28-day epochs.
• Collateral: INJ can be used as collateral in derivatives markets and lending protocols.
• Trading Discounts: Stakers receive trading fee discounts based on the amount staked.

Locking Mechanism

• Staking Lock: When INJ is staked, it is locked and cannot be transferred or used elsewhere.
• Unbonding Period: There is a standard 21-day unbonding period for staked INJ. During this time, tokens cannot be used or transferred.
• Vesting: Initial allocations (team, advisors, private/seed sale, etc.) were subject to vesting schedules, with most allocations fully vested by January 2024.

Unlocking Time

• Vesting Completion: Most major allocations (team, advisors, private/seed sale, etc.) completed their vesting by January 20, 2024.
• Ongoing Unlocks: As of early 2024, the vast majority of tokens from all major allocations have been unlocked, with 100% unlock completion for most categories.

Example Unlock Table (Recent Data)

Additional Nuances and Implications

• Deflationary Pressure: The burn mechanism, especially after the INJ 2.0 upgrade, is designed to make INJ increasingly deflationary as ecosystem activity grows.
• Staking Incentives: The protocol dynamically adjusts inflation to incentivize high staking participation, targeting network security.
• Ecosystem Growth: Large allocations to ecosystem development and community growth reflect a long-term strategy to foster adoption and innovation.
• Governance Decentralization: All major changes, including tokenomics adjustments, are governed on-chain, with no unilateral control by the project team.

Summary Table: INJ Tokenomics at a Glance

Conclusion

Injective’s tokenomics are designed to create a sustainable, secure, and growth-oriented ecosystem. The combination of dynamic inflation, aggressive deflation via burns, robust staking incentives, and a focus on ecosystem development positions INJ as a utility-rich and community-driven asset. The completion of major vesting schedules in early 2024 further decentralizes token ownership and aligns incentives for long-term network participants.