What is the issuance volume and circulation volume of INJ coin

The initial supply of INJ coins was 100 million, with ongoing issuance to incentivize network participation and a portion of the supply locked for specific purposes.

Nov 13, 2024 at 09:40 am

What is the Issuance Volume and Circulation Volume of INJ Coin?

Introduction
Injective Protocol (INJ) is a decentralized exchange (DEX) platform that enables cross-chain trading of crypto assets. By leveraging the Inter-Blockchain Communication (IBC) protocol, INJ allows users to seamlessly trade assets between different blockchains, offering increased liquidity and interoperability.

Issuance Volume
The issuance volume of INJ coin represents the total number of coins created and released into circulation. This metric plays a crucial role in understanding the supply dynamics of the token and its potential impact on market price.

1. Genesis Block Issuance:

• At the genesis block, a total of 100 million INJ coins were created, establishing the initial supply.

2. Token Generation Event (TGE):

• During the token generation event (TGE), a certain amount of INJ coins were sold to early investors and contributors, raising funds for the project's development. The number of coins sold during the TGE varies depending on the project's funding requirements.

3. Ongoing Creation:

• Injective Protocol utilizes an inflationary issuance model, where new INJ coins are created over time. This issuance is designed to incentivize validators and users participating in the network's operations.

Circulation Volume
The circulation volume of INJ coin refers to the number of tokens that are currently in circulation and available for trading. This metric provides insights into the active supply of the token and its liquidity in the market.

1. Locked Tokens:

• A portion of the total INJ supply may be locked or reserved for specific purposes, such as team allocations, development funds, or community rewards. These locked tokens are not included in the circulation volume until they are released.

2. Trading Volume:

• The trading volume of INJ coin on exchanges contributes to its circulation volume. As users buy and sell INJ, the number of coins in circulation increases or decreases accordingly.

3. Burning Mechanisms:

• Some projects implement burning mechanisms to reduce the total supply of their tokens. Burning involves sending tokens to an inaccessible address, effectively removing them from circulation. If INJ utilizes any burning mechanisms, they would impact the circulation volume.

Market Supply and Demand
The issuance and circulation volume of INJ coin directly affect the token's market supply. A higher issuance volume can lead to increased supply, potentially putting downward pressure on the price. Conversely, a limited circulation volume can create scarcity, potentially driving up demand and price.

Conclusion
Understanding the issuance volume and circulation volume of INJ coin is essential for assessing its supply dynamics and potential market behavior. These metrics provide insights into the token's availability, liquidity, and inflationary or deflationary characteristics.