The INJ token is the backbone of the Injective ecosystem.
Utility of INJ
- Transaction Fees – although users often experience zero fees, validators are compensated with INJ.
- Staking – token holders can delegate INJ to validators and earn rewards.
- Governance – proposals on upgrades and protocol changes are voted on using INJ.
- Collateral – used in derivatives markets as margin and insurance.
- Burn Mechanism – a portion of fees is burned, reducing supply and supporting long-term value.
Economic Impact
This multi-utility approach ensures constant demand for INJ, aligning incentives for developers, validators, and traders.
