The cryptocurrency $INJ is the native token of Injective Protocol, a layer 1 blockchain optimized for decentralized finance (DeFi), built on the Cosmos ecosystem. Officially launched in 2020, the project aims to provide a highly scalable, interoperable, and efficient infrastructure for decentralized financial applications.
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🔍 What is Injective Protocol?
Injective is a platform that enables the creation of various DeFi applications, including decentralized exchanges (DEXs), prediction markets, and derivatives protocols. Unlike other DEXs that use automated market maker (AMM) models, Injective adopts a traditional order book model, similar to centralized exchanges, providing greater efficiency and transparency in trading.
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⚙️ Features of token #INJ
The INJ token serves multiple functions within the Injective ecosystem:
Governance: Holders of $INJ can vote on proposals that influence the development and updates of the protocol.
Staking: Users can stake their tokens to participate in the network's security and receive rewards.
Token burning: 60% of the fees generated by decentralized applications (dApps) are used to buy back and burn INJ tokens, reducing the total supply and promoting a deflationary model.
Incentives for developers: The remaining 40% of the fees are allocated to incentivize developers to create new applications within the ecosystem.
