Injective on-chain governance proposal has just been implemented, with the support rate reaching 99.9%—this number is already considered a rare consensus in DAO voting. What is the core of this update? Reduce the INJ supply while optimizing the burn mechanism to lower inflation.

It seems the reform is quite substantial. The new phase design aims to accelerate the net token supply contraction, working in synergy with the existing community buyback program. Theoretically, tightening the supply side usually supports the price—but reality often proves otherwise.

After the INJ proposal was approved by voting, there was indeed a reaction, with a short-term increase of about 2%, but it was immediately dragged down by larger market declines, eventually falling back by around 10%. What does this indicate? Short-term benefits are realized quickly, but overall market sentiment exerts greater pressure on individual tokens. In the long run, whether the genuine decrease in supply can support the price depends on subsequent execution and market cycle coordination.