Injective upgrade token economics will significantly increase the amount of INJ burned each week

ChainCatcher news, the decentralized trading protocol Injective has today released an upgrade to its tokenomics, allowing all dApps built on Injective to contribute to the INJ burn auction, with no limits on the fees they wish to burn. This can make the on-chain economy powered by INJ even stronger, as the burn auction can now draw value from all dApps in the rapidly growing Injective ecosystem.

It is reported that Injective's token burn auction is a very unique mechanism that collects protocol fees and transforms them into collective value for the protocol. In the initial concept, the token burn auction auctioned off 60% of all fees collected by trading dApps built on Injective, and then burned the tokens used to pay for the auction basket.

In the weekly burn event, each trading dApp contributes 60% of its trading fees into an auction basket, providing community members the opportunity to bid for the complete earnings of the week. The fees paid for the auction basket are immediately burned after the auction ends, thereby reducing the overall token supply.