What Is Injective Protocol (INJ)?
INJ is the native token of the Injective protocol developed by Injective Labs. Check out the price chart above, if you’re interested in the current INJ price.
Injective is an interoperability protocol that is created specifically for DeFi applications that are compatible with Ethereum. It allows users to trade in various DeFi markets as well as develop them. This includes trading perpetual and futures contracts, crypto assets, synthetics assets, and any other types of assets.
The trades using the Injective protocol have instant finality and don’t have any gas fees. Besides, Injective supports cross-chain trading, which means that users can trade their assets across different blockchains.
A central limit order book is the core of the Injective's trading system. A limit order book displays the number of limit orders that are currently open at each price level. It provides users with transparency but at the same time gives them a simple-to-use interface and quick transaction speeds.
Besides trading, Injective also allows users to develop decentralized applications (dApps). Because of the Injective’s interoperability with Ethereum, developers can create cross-chain dApps using tools based on Ethereum. They are qualified to get developer rewards for doing so.
The consensus mechanism employed by the Injective protocol is a Tendermint-based Proof-of-Stake (PoS) algorithm. How does it work? Simply put, a random node from a validator set is chosen for every period. The following block must then be proposed by that node. The chain is immediately updated and the new block is added if other validators approve of it. In order to become node validators, users have to stake INJ tokens.
In order to be as informed as possible, check out the Injective Protocol price history and trends on the graph above.
The Founders of Injective Labs
Injective Labs was founded by Eric Chen and Albert Chon. Eric Chen not only has extensive knowledge of blockchain-based protocols but also has a deep understanding of conventional banking. He was a trader and cryptographic researcher at a significant crypto fund before he founded Injective.
Albert Chon has a degree in computer science. He developed an ERC-1178 token standard, which is widely adopted by many projects. Prior to co-founding Injective Labs, Chon worked as a full stack software engineer at Linc Global and as a software development engineer at Amazon.
The Purpose of INJ Tokens
INJ is the utility and governance token of the Injective protocol. The Injective token is stored on the Ethereum network as an ERC-20 token. The following are the main use cases of Injective coins:
- Governance. INJ holders are able to vote on various decisions considering the future development of the Injective protocol.
- Security. INJ tokens are used to reward PoS consensus mechanism node validators for their participation in securing the Injective protocol.
- Collateral derivatives backing. The INJ tokens can be used to provide collateral for margin trading. This allows users to access the derivatives market at Injective.
- Market maker rewards. Market makers, who assist in establishing liquidity on the DEX trading platform, are compensated with fees collected from Injective exchange users.
- Staking. INJ tokens can be staked to receive up to 12% yearly returns.
Tokenomics of INJ
INJ tokens are deflationary because they have a max supply of 100 million tokens. 31,67% of the total supply was dedicated to the Binance Launchpad, seed, and private sales. The remaining portion was split between the team and advisors, as well as ecosystem development and community growth funds.
If you intend to purchase Injective coins, keep in mind that the INJ price is subject to change. This occurs because the volatility of the entire crypto market has an impact on the Injective price, just like it does on the pricing of other digital assets.
So, if you're interested in purchasing this digital asset, don't forget to check the graph above.