- The L1 project burned over 6.7 million tokens in its first community buyback.
- The initiative aims to reward active network participants.
- A new buyback is scheduled for November, reinforcing Injective’s deflationary mechanism.
The team revealed the event burned 6.78 million INJ coins, worth approximately $32.28 million.
The first $INJ Community BuyBack is now officially complete!
Injective is the only chain where token buybacks directly reward the community.
1. INJ is burned forever
2. The community earns from a reward pool for their contributionsStay tuned for the next burn in November 🔥 pic.twitter.com/5KUiMDiyaI
— Injective 🥷 (@injective) October 29, 2025
Rather than the foundation or core team repurchasing tokens and burning them privately, Injective prioritizes user participation.
The Layer 1 network builds a system that pairs deflationary action with community incentives.
This approach ensures that active network participants benefit from Injective’s ecosystem growth, aligning rewards across INJ holders, traders, and developers.
The announcement stated:
Injective is the only chain where token buybacks directly reward the community.
Notably, Injective opened its initial buyback event to the public on October 23.
Injective’s unique buyback strategy
Injective’s community buyback mechanism employs two straightforward but powerful elements.
First, the platform permanently burns native tokens to reduce total supply.
Second, it allocates a portion of the value to reward users who contribute to the INJ ecosystem.
According to the official blog:
Community BuyBack is a monthly on-chain event that allows anyone to participate in Injective’s deflationary mechanism. Participants lock INJ and, in return, receive a proportional share of revenue generated across the Injective ecosystem. The swapped INJ is then permanently burned, reducing the overall supply of INJ.
Specifically, the Community Buyback pool comprises various tokens, including USDT and INJ, valued at the equivalent of 10,000 Injective tokens.
This design introduces a robust deflationary model while incentivizing loyal users.
Injective maintains transparency by publishing all buyback details on a public dashboard.
Adopting a deflationary economy with a twist
Injective’s latest announcement forms part of its broader mission to build a community-centered, sustainable token economy.
By burning native tokens each month, the project aims to curb INJ inflation while encouraging long-term holding.
Many projects across decentralized finance employ similar mechanisms.
Injective, however, adds a notable twist by actively involving users in the process.
Beyond strengthening trust, this approach keeps INJ holders engaged in the ecosystem’s development.
Holders also stand to benefit from scarcity as each buyback permanently reduces circulating supply.
The next burn is scheduled for November.
Price outlook for INJ
The native token remained relatively subdued over the past 24 hours as broader bearish sentiment weighed on the market.
INJ is trading at $8.66. It consolidated between $9 and $8 during the previous week and gained roughly 3% over that period.
Daily trading volume rose by 17%, signaling renewed optimism, likely driven by the buyback announcement.
Still, broader market sentiment will shape altcoin price trajectories in upcoming sessions.