Token burns are crucial for cryptocurrency investors as they directly affect the price by reducing inflation. Therefore, investors of meme coins with trillions of supply often dream of a sudden burn that would evaporate the supply. However, this time the news of a token burn comes from a different coin.
Latest Updates on Injective (INJ)
All dApps built on Injective can now contribute to the INJ burn auction without any limitation on the amount of fees they want to burn. This can lead to a stronger on-chain economy supported by INJ.
The team stated:
“The Injective Token Burn Auction is a unique mechanism that collects protocol fees and converts them into collective protocol value. The Token Burn Auction initially auctioned 60% of all fees collected in exchange dApps built on Injective and then burned the tokens used for payment in the auction basket. During the weekly burn event, each exchange dApp directed 60% of the transaction fees to an auction basket, providing the community members with the opportunity to compete for all the earnings of that week through their bids. Payments made for the auction basket were immediately burned at the end of the auction, reducing the total token supply. This innovative approach effectively transformed transaction fees into a community-focused incentive, benefiting both the winning participant and the Injective community members, thereby increasing user participation and engagement. Through this previous burn auction model, over 5.7 million INJ tokens have been permanently destroyed.”
The new mechanism will allow the application on the network to allocate a larger portion of fees towards burning in order to attract more users. This competition can make users happy while also contributing to a decrease in token supply and potentially raising the price.
The price of INJ Coin has started to rise due to this news.
