The Injective community has approved innovative changes to tokenomics and launched the Injective 3.0 system.
This revision revises INJ’s issuance mechanism and introduces features designed to make it “one of the most deflation-resistant assets in cryptocurrency.” These changes aim to quadruple deflationary pressures on INJ over the next two years.
Can Injective (INJ) surge 45%?
INJ is the native token of the Cosmos-based layer 1 blockchain managed by the non-profit Injective Foundation. The INJ 3.0 proposal, recently released on April 19, is based on two key adjustments.
First, we modify INJ's inflation limits by setting the lower and upper bounds to 4% and 7%, respectively. These limits will be implemented gradually and will be reassessed in the second quarter of 2026.
Read more: Tokenomics Explained: The Economics of Cryptocurrency Tokens
Additionally, this update significantly increases the inflation rate change parameter from 0.1 to 0.5. As a result, INJ's inflation rate will be more responsive to staking activity, enhancing network security and user engagement.
Jenna Peterson, CEO of the Injective Foundation, explained the strategic importance of this update.
“With these significant updates approved through the governance of the broader Injective community, INJ 3.0 aims to even surpass Bitcoin’s sound monetary properties,” Peterson said .
Eric Chen, CEO of Injective Labs, also emphasized the community's overwhelming approval, citing an approval rate of 99.99%.
On the trading side, INJ is down more than 50% from its all-time high in one month. However, the market movement is currently showing a bullish reversal. Technical analysis shows that INJ is forming a cup and handle chart pattern, which is a strong bullish signal.
This pattern suggests a potential breakout if INJ can break the important resistance level of $29.85. Accomplishing this could push it up to around $41.47, which would reflect an increase of over 45%.
Read more: A Guide to Cup and Handle Patterns in Technical Analysis
“If a major level flips, be prepared for a huge pumping,” said crypto analyst Nihilus.
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