INJ

INJ is Injective’s native staking token. Staked holders can govern and decide the future of the protocol.

Base Denomination

INJ uses Atto as the base denomination to maintain parity with Ethereum.

1 inj = 1×10⁻¹⁸ INJ

This matches Ethereum denomination of:

1 wei = 1x10⁻¹⁸ ETH

Injective Token Economics (Tokenomics)

1. Proof of Stake Security

The Injective PoS blockchain is governed by the native INJ token.

Use cases for the token include but are not limited to the following: governance, staking, and dApp value capture.

The initial supply of INJ is 100,000,000 tokens and shall increase over time through block rewards.

The target INJ inflation is 7% at genesis and will decrease over time to 2%. Gradually, the total supply of INJ may be lower than the initial supply due to the deflationary mechanism detailed in the Exchange Fee Value Accrual section below.

2. Governance

The INJ token also serves as the native governance token for Injective.

INJ is used to govern all aspects of the chain including:

• Auction Module Parameters
• Exchange Module Custom proposals and Parameters
• Insurance Module Parameters
• Oracle Module Custom proposals
• Peggy Module Parameters
• Wasmx Module Parameters
• Software upgrades
• Cosmos-SDK module parameters for the auth, bank, crisis, distribution, gov, mint, slashing, and staking modules.

Full details on the governance process can be found here.

3. Exchange dApps Incentives

The exchange protocol implements a global minimum trading fee of $r_m=0.1\%$ for makers and $r_t=0.2\%$ for takers. As an incentive mechanism to encourage exchange dApps to source trading activity on the exchange protocol, exchange dApps who originate orders into the shared orderbook are rewarded with $\beta = 40\%$ of the trading fee arising from orders that they source.

4. Exchange Fee Value Accrual

The remaining $60\%$ of the exchange fee will undergo an on-chain buy-back-and-burn event where the aggregate exchange fee basket is auctioned off to the highest bidder in exchange for INJ. The INJ proceeds of this auction are then burned, thus deflating the total INJ supply.

More details on the auction mechanism can be found here.

5. Collateral Backing for Derivatives

INJ will be utilized as an alternative to stablecoins as margin and collateral for Injective's derivatives markets. In some derivative markets, INJ can also be used as collateral backing or insurance pool staking where stakers can earn interest on their locked tokens.