The administration voted to accelerate the reduction of INJ supply
The Injector Protocol community approved a major Tokenomics reform by approving a governance proposal based on 99.89% of the voting rights held.
Injective is a layer-1 blockchain focused on decentralized financial applications, INJ (INJ) serves as the originator for stock, management and transaction payments.
The Supply Compression Proposal (IIP-617) would reduce initial token issuance and maintain the network's buyback and buyback program, which uses protocol revenues to permanently remove tokens from circulation.
The network claims to have withdrawn approximately 6.85 million INJ from circulation through token burning. The proposal is to speed up token removal by aligning the reduced product with repeat purchases.
According to X's post from Injective on Monday, the management changes go live “allowing INJ to become one of the most underrated properties over time.”
The management's vote follows a prolonged decline in INJ's market value amid a broad altcoin selloff. INJ has fallen nearly 80% in the past year and is down more than 90% from its peak in March 2024. According to CoinGecko data, the token fell by 8% on Monday.
Community reaction to X after the vote was largely optimistic, with users framing it as a structural change rather than a short-term market booster.
According to Defillama data, at the time of writing Injector has $18.67 million in total value locked (TVL) across the DeFi ecosystem, down from a peak of over $60 million in 2024.
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Injective considers ETF documents and new certificates
Despite the drop in INJ's price and the total value of the network being locked, Injective's 2019 It continues to attract institutional participation in 2025, with regulated investment products, underwriting participation and new financial market offerings.
In July, Cboe and Canary Capital both filed regulatory applications for a staked Injective Exchange-Traded Fund (ETF), each seeking to list a fund in which INJ would hold and participate in order to generate rewards on an “authorized staking platform.”
Needle continues to expand its verifier collection. In February, Deutsche Telekom's IT services subsidiary, Deutsche Telekom MMS, joined the network as an authenticator.
Recently, a Korean university became the first academic institution to operate a verifier and conduct onchain research on the network, according to an announcement on Wednesday.
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