When many people mention INJ, their first reaction is speed; the trading experience is smooth. That's right, but if your understanding stops there, what you see is merely the tip of the iceberg, while the volcano hidden underwater that truly drives the tsunami of value is something you haven't seen at all. Fast forward to now, November 2025, looking back at those who made big money on INJ, without exception, they all saw the true power of its deflationary model early on.

To truly understand this matter, we cannot just look at the candlestick chart; we must be like a detective, diving into its economic system, first dismantling its core engine 'burn auction,' then examining where this engine's fuel actually comes from. Only then can you understand why it is said that the value growth of INJ is an inevitability written in the code.

First of all, we must distinguish between INJ's burning auction and simple token destruction. Many projects that do destruction either do it once or have a fixed proportion, which is more like a marketing gimmick. But INJ's approach is entirely different. Every week, 60% of the transaction fees generated by all dApps on the Injective protocol will be collected to form a value pool. Then, the system will initiate a public auction where anyone can bid for this asset in the pool (such as USDT, wETH, etc.) using INJ. The highest bid of INJ will be sent directly to a black hole address, permanently destroyed.

Do you understand? This is not simple repurchase and destruction; it creates a continuous, market-driven, real-money buying force. The more prosperous the ecosystem, the more dApp transaction fees there are, and the higher the value in the auction pool becomes. Bidders are willing to spend more INJ to destroy it in order to win this asset. This is a perfect positive flywheel. I remember at the beginning of 2024, I was arguing with a friend who was stubbornly holding onto an old L1 with inflated TVL but dead on-chain activity, while one of my key criteria for project evaluation was whether its economic model was positively linked to real user activity. The burning auction of INJ is a textbook-level case, as it directly converts the prosperity of the ecosystem into token deflation.

Secondly, and also the most overlooked point, what is the fuel of this deflationary engine? It is real, high-frequency on-chain activity, not the fictitious TVL. In the last cycle, too many people were deceived by the TVL narrative, with large amounts of money just lying in the protocol, mining and selling without contributing to the protocol itself. The fuel for the burning auction of INJ comes directly from transaction fees, Mito's strategy fees, Helix's order fees, etc. This means that every user who trades in the Injective ecosystem, uses products, and participates in governance is adding fuel to this deflationary furnace. The larger the trading volume and the more frequent the interactions, the stronger the fire burns. Therefore, to judge the potential of INJ, it's better to look at its daily transaction count and active address count rather than TVL; the latter is the core fuel driving its value flywheel.

Of course, the Achilles' heel of this model is also quite obvious: it heavily relies on continuous growth and innovation of the ecosystem. If one day, the dApps on Injective cannot attract users and trading volume dwindles, then this burning auction pool will dry up, and the narrative of deflation will become a source without water. This is both a risk and an opportunity. It forces the entire ecosystem to continuously move forward, constantly building truly usable products, rather than resting on past achievements.

So, today, when we review the value logic of INJ, you will find it simple yet powerful: attract developers and users through top-notch technology and interoperability, generate real transaction fee income from prosperous on-chain activity, and convert fees into continuous buying pressure and destruction of INJ through the burning auction mechanism, ultimately leading to a strong deflationary spiral for the token. Those who do not understand this closed loop will only chase highs and cut losses, complaining about volatility, while those who truly understand it have long seen each market correction as an opportunity to fuel the deflationary engine.

Besides trading volume, what other on-chain activities do you think can contribute the most value to the burning pool of INJ in the future? Feel free to share your thoughts in the comments.

Disclaimer: This article is only a personal opinion and does not constitute any investment advice. The market has risks, and investments should be made cautiously.@Injective #Injective $INJ