INJECTIVE LAUNCHES COMMUNITY-BASED DEFLECTION PROGRAM TO REDUCE SUPPLY

• Injective’s Community BuyBack is a monthly on-chain program where users can lock INJ tokens to earn a share of the ecosystem’s revenue.
• Upon completion, all committed INJ tokens are permanently burned, reducing the token supply and making the network deflationary.
• Rewards are distributed proportionally to participants and include INJ, USDT, and other supported tokens.

The Community BuyBack was introduced as a community-focused model that replaces the previous winner-take-all Burn Auction format. Users who have interacted with Injective dApps or hold a Ninja Pass are eligible to participate.

During the most recent round, a 300 INJ commitment yielded a 48.46% ROI, including returns in both INJ and USDT. Participants must commit their tokens during a specific time window, and once locked, they cannot be changed until the seven-day commitment period ends.

The program aims to increase network transparency by recording all transactions and burns on the blockchain. These actions are publicly viewable through Injective’s blockchain explorer.

How does the Community BuyBack work?

Users can participate in the Community BuyBack by locking INJ tokens within set minimum and maximum limits. Once committed, the tokens are locked for the event duration, and rewards are distributed based on the proportion of the contribution.

All committed tokens are permanently burned after the event, contributing to the deflationary mechanism of the Injective network. This approach helps reduce the total supply of INJ and potentially increases token value over time.

What are the eligibility requirements and participation limits?

To participate in the Community BuyBack, users must either have interacted with Injective dApps or hold a Ninja Pass.

In the most recent round, the maximum allowed commitment was 300 INJ, and all available slots were filled within 30 minutes of opening. Participation is on a first-come, first-served basis, and users must monitor the Injective Hub portal for announcements.

Injective’s Community BuyBack has driven increased network activity, supported by broader momentum from real-world asset (RWA) integrations.

What are the implications for the Injective network and market participants?

The deflationary nature of the Community BuyBack can have implications for INJ token economics and market value.

By reducing the total supply of INJ tokens, the program aims to create scarcity and potentially drive token price appreciation. This aligns with broader market trends that favor deflationary mechanisms in blockchain projects.

Participants should be aware of the risks associated with committing tokens, including potential volatility in reward token values and the permanent nature of token burns.