Injective Executes $32 Million Community-Led Token Buyback to Curb Inflation

Injective burned 6.78 million INJ worth $32.28 million in its first community-driven buyback.

The on-chain buyback rewards active users while reducing the token’s circulating supply each month.

Transparency is maintained through a public dashboard tracking all buyback and burn activities.

Injective has confirmed the completion of its first community-driven token buyback, burning 6.78 million INJ tokens worth approximately $32.28 million. The event began on October 23 and concluded on October 27, a major phase in the Layer 1 network’s deflationary roadmap

According to CryptoRus, the initiative stands out in the blockchain space for putting community participation at the core of a buyback process that directly impacts token supply and user incentives. By involving participants in the repurchase and burn, the project combines a deflationary framework with user rewards to strengthen ecosystem engagement and token scarcity.

A New Approach to Token Deflation

Injective’s buyback mechanism integrates two coordinated components designed to manage inflation and reward user activity. The first involves permanently removing tokens from circulation through monthly burns, while the second distributes value to users who actively contribute to the ecosystem

According to the project’s official post, each buyback cycle functions as an on-chain event where participants exchange INJ and receive a proportional share of revenue generated across Injective’s decentralized applications. The exchanged tokens are then burned, directly lowering the overall supply.

This system differs from traditional buybacks conducted privately by foundations or teams. Instead, Injective opens participation to the public, ensuring transparency and shared value distribution. The Community BuyBack basket includes assets such as USDT and INJ, equivalent to roughly 10,000 Injective tokens, creating an open and traceable process.

Transparency and Community Involvement

Transparency remains a central feature of Injective’s deflationary model. All buyback-related data is accessible through a public dashboard, allowing anyone to verify token movements and transaction records. Such openness enhances accountability within the network while promoting community participation in maintaining INJ’s long-term structure.

The first buyback demonstrated how a decentralized system can manage supply while keeping users involved. It reinforced the project’s ongoing transition toward a more community-centered model, where every participant can play a role in shaping token economics.

Sustaining Long-Term Supply Control

Injective’s deflationary design continues with a planned monthly burn, aiming to reduce inflation and encourage sustained token holding. The network’s next burn event is scheduled for November, continuing the framework that blends user engagement with controlled supply reduction.

According to CryptoRus, Injective remains the only chain where token buybacks directly reward the community, merging ecosystem growth with consistent deflationary practices through a transparent and repeatable process.

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