After studying numerous token economic models, I have to say that the design of INJ is exemplary. Its ingenious deflation mechanism not only ensures the scarcity of the token, but more importantly, directly converts the results of ecological development into benefits for holders.
The destruction auction mechanism of INJ is its core value. Whenever transaction fees are generated on the chain, a portion of the income will be used to repurchase and destroy INJ on the open market. This means that as the ecological activity increases, the deflation rate of INJ will continue to accelerate. Especially after the launch of the iAssets framework, high-frequency trading of traditional assets has injected new fuel into this deflation engine.
The staking mechanism reinforces the value foundation of INJ from another dimension. By dynamically linking the issuance rate to the staking rate, the system rewards long-term holders while ensuring the security of the network. With over 60% of the circulating supply staked, INJ has effectively become one of the most secure networks in the crypto world.
Even more surprisingly, a perfect synergy forms between these mechanisms. Staking reduces circulating supply, burning creates deflationary pressure, while ecological development provides sustained momentum for both mechanisms. This self-reinforcing economic model allows INJ to rise quickly in a bull market and shows stronger resistance to declines in a bear market.
