Injective Introduces the INJ Supply Squeeze to Bolster Token Scarcity

Layer-1 blockchain Injective has taken another step to make its native cryptocurrency, INJ, more deflationary than it already is.

After a unanimous 99.89% vote in support of a proposal, dubbed IIP-617 (INJ Supply Squeeze), the blockchain development team unveiled the new tool to double down on its deflationary measures.

The INJ Supply Squeeze

Since its mainnet debut in 2021, Injective has explored various ways to make INJ scarce and potentially boost its value. Shortly after launching its mainnet, the L1 network began frequent token burns.

In October 2025, it embraced a Community BuyBack mechanism. Both measures aim to reduce the circulating supply of the cryptocurrency and increase its price in the long term. The L1 blockchain has already permanently removed 6.85 million INJ from existence.

On January 15th, Injective introduced the IIP-617 proposal to its community. This measure permanently increases the rate at which INJ coins are supplied into the market.

The announcement stated that the INJ Supply Squeeze will work alongside existing deflationary measures, such as the Community BuyBacks.

The blockchain’s team believes that these token-reduction mechanisms will bolster INJ’s tokenomics, highlighting that its design is gradually shifting toward “a structurally enhanced deflationary model.”

Impact on INJ’s Price

Injective’s co-founder, Eric Chen, reiterated the impact that these deflationary measures will have on INJ’s overall performance, saying:

“The INJ Supply Squeeze spearheaded by the Injective community represents a decisive step in the evolution of Injective’s monetary design. By doubling the rate of deflation and pairing it with systematic tokens buybacks, Injective is reinforcing its scarcity and positioning INJ as a long term deflationary asset aligned with the growth of the ecosystem.”

Most blockchains and crypto projects adopting a deflationary model do so in an effort to reduce their token’s supply and bolster its value. Still, INJ has yet to experience a notable price uptrend despite its diverse token-reduction mechanisms. At the time of writing, it sold for $4.64.

Notwithstanding, a breakthrough in other forays, such as the staked exchange-traded fund (ETF) business, could bring INJ the much-needed price upturn.

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