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When the community proposal was announced, it made quite a noise and has now been approved. Since it pertains to the token economy, it is expected to impact the price. The details of this development contain important points that long-term INJ Coin investors need to memorize. So, what are the critical details about the supply? How will it affect the price?
The Future of INJ Coin
Injective‘s tokenomic system has accepted the biggest upgrade. The proposal dated April 19 aims to make INJ Coin one of the most deflationary assets in crypto. The native token of the Cosmos-based Layer 1 network, INJ, will quadruple deflation in two years.
Injective Foundation CEO Jenna Peterson recently stated;
“This proposal is the next stage in Injective’s development; since its inception, we have seen billions of dollars flow through. To ensure that the ecosystem serves institutional players in the long term, INJ must function as ultrasound money – rewarding early adopters and attracting new participants.”
The recent development has two main components. The first is changes made to INJ’s upper and lower inflation limits. Within two years, the upper limit will be reduced to 7% and the lower limit to 4%. The second part of the proposal is to increase the inflation rate change parameter from 0.1 to 0.5, thus increasing sensitivity to staking activities.
A slower increase in circulating supply, if demand remains the same, should lead to a price increase. In the long term, we will see more clearly how this is implemented and its impact on demand.
INJ Coin Price Prediction
As of the time this article was prepared, INJ Coin is trading at $28.6, and if it can overcome the $29.7 barrier, new highs could be seen. The price of the altcoin had peaked at $53 by mid-March after increasing very rapidly. If the first resistance is overcome, surpassing $33.79 could also test the 2024 highs again.
Looking at the downside, if the $22.85 support is lost, the $18.5 and $13.5 lows could be retested. Considering the price lingered around $7.5 in October, we can say it has been one of the best-performing altcoins this year.
