The Injective community has approved transformative changes to its tokenomics, launching the Injective 3.0 system.

This revision modifies INJ’s minting mechanics and introduces features designed to make it “one of the most deflationary assets in crypto.” These changes aim to quadruple the deflationary pressure on INJ over the next two years.

INJ is the native token of a Cosmos-based Layer 1 blockchain, managed by the non-profit Injective Foundation. The recent endorsement of the INJ 3.0 proposal, unveiled on April 19, is built on two main adjustments.

Firstly, it revises INJ’s inflationary bounds by setting the lower and upper limits at 4% and 7%, respectively. These limits will be incrementally enforced and reassessed in the second quarter of 2026.

Read more: Tokenomics Explained: The Economics of Cryptocurrency Tokens

Furthermore, the update substantially increases the inflation rate change parameter from 0.1 to 0.5. Consequently, this makes INJ’s inflation rate more reactive to staking activity, thereby enhancing network security and user engagement.

Jenna Peterson, CEO of the Injective Foundation, discussed the strategic importance of these updates.

“With these vital updates approved through governance by the broader Injective community, INJ 3.0 aims for INJ to surpass even the sound monetary properties of Bitcoin,” Peterson said.

Also, Eric Chen, the CEO of Injective Labs, emphasized the community’s overwhelming approval of the proposal, noting a 99.99% approval rate.

On the trading front, INJ dropped over 50% from its all-time high within one month. However, its current market behavior indicates a bullish reversal. Technical analysis reveals that INJ has formed a cup and handle chart pattern, which is a strong bullish signal.

This pattern suggests a potential breakout if INJ can move past the critical resistance level at $29.85. Achieving this could propel the price to around $41.47, reflecting an increase of over 45%.

Read more: A Guide to the Cup and Handle Pattern in Technical Analysis

“If it flips the key level, be ready for huge pump,” crypto analyst Nihilus said.

The post Injective’s Tokenomic Changes Aim for Unprecedented Deflation: Price Impact appeared first on BeInCrypto.

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