What Is Injective Protocol? All About INJ Token?

In today's article, we will learn what Injective Protocol is and all the details about the tokenomics of the INJcoin.

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What is Injective Protocol (INJ)?

Injective Protocol is an infrastructure framework built to support decentralized finance (DeFi) applications. With open source code and high interactivity, this project aims to enhance multi-chain trading capabilities with derivative financial products such as Perpetual Swap, Futures and Spot trading. This platform is built on the basis of Ethereum and Cosmos blockchain, with the goal of minimizing gas costs.

Injective aims to create a truly free and decentralized financial system. With the goal of achieving the fastest blockchain speed in decentralized finance, and the ability to easily deploy Web3 modules, Injective’s ecosystem is changing the way the financial system works. today by creating decentralized applications that are highly interoperable, scalable, and truly decentralized.

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https://injective.com/

Injective Protocol highlights

  • Layer 2 decentralized derivatives trading solution: Injective supports fast transactions with low gas fees.

  • Wide range of markets supported: The platform offers many trading opportunities that are not currently available on other exchanges.

  • Liquidity mining mechanism: The Injective community can participate in providing liquidity through the liquidity mining process, a form of creating supply directly on the network platform.

Main products of the Injective project

In the ecosystem of the Injective project, there are 6 main products integrated in the Injective Hub: Wallet, Bridge, Staking, Governance, Insurance Fund, and Auction.

Main interface of Injective

Wallets

Injective Wallet allows users to manage assets on Injective Protocol. In addition, this wallet supports the “memo” feature so users can check the content in “memo” when making transactions, ensuring security and safety.

Bridge

As a DeFi infrastructure, Injective’s main advantage is the ability to perform cross-chain transactions with famous blockchains on the market.

Staking

Injective uses a Proof of Stake operating model to validate transactions. Therefore, the project allows users to stake tokens to profit from participating in the validation process in the network.

Governance

Users can submit suggestions to modify the Injective program, upgrade the technology, or make any other changes related to Injective that affect the entire ecosystem.

At Injective Hub, new proposals are submitted through the admin portal and voted on by the community.

Insurance Fund

Every user has the ability to create a personal insurance fund when participating in the financial derivatives market and can also become an underwriter by contributing to that fund. Based on the ownership ratio, sponsors can receive a profit amount corresponding to their contribution.

Auction

60% of the transaction fees will be collected by Injective (the remaining 40% will go to exchange applications built on Injective). Each week, an auction is held, allowing the community to use INJ to place bids on assets collected from the week’s trading fees. After the auction ends, the winner will receive the full asset value and the amount of INJ tokens participating in the auction will be burned. This creates downward pressure on INJ token supply.

Product structure of Injective Protocol (INJ)

Injective Protocol includes 4 main components: Injective Chain, Smart Contract, API Node and user interface.