Layer-1 blockchain Injective is stepping up efforts to make its native token, INJ, more deflationary. Following overwhelming community approval of IIP-617 (INJ Supply Squeeze) with 99.89% support, the Injective team unveiled a new mechanism designed to complement its existing deflationary tools, including the Community BuyBack program.
What the INJ Supply Squeeze Does
Since its 2021 mainnet launch, Injective has actively pursued strategies to reduce INJ’s circulating supply and strengthen its tokenomics. Early on, the network implemented regular token burns, and in October 2025, it introduced a Community BuyBack mechanism. Together, these measures have permanently removed 6.85 million INJ from circulation.
The INJ Supply Squeeze aims to further increase the rate at which INJ is withdrawn from circulation, working alongside buybacks to enhance scarcity. Injective describes this move as a step toward a “structurally enhanced deflationary model,” reinforcing the token’s long-term value proposition.
Potential Impact on INJ’s Price
Co-founder Eric Chen emphasized the strategic importance of the initiative:
“The INJ Supply Squeeze, led by the Injective community, represents a decisive evolution in our monetary design. By accelerating deflation and pairing it with systematic buybacks, Injective is reinforcing INJ’s scarcity and positioning it as a long-term deflationary asset aligned with ecosystem growth.”
While most deflationary crypto models aim to increase token value by reducing supply, INJ has yet to see a significant price surge, currently trading around $4.64. However, developments in other areas such as staked ETFs could drive future price growth.
