L1 project burns over 6.7 million tokens in first community buyback. This initiative aims to reward active network participants. Additional share buybacks are planned for November, strengthening Injective’s deflationary mechanism.
Injective has submitted a report to X confirming the completion of the first community-driven token buyback that began on October 23rd, marking an important step in L1’s deflationary model.
The team revealed that 6.78 million INJ coins worth approximately $32.28 million were burned during this event.
The first $INJ Community BuyBack is officially complete!
Injective is the only chain where token buybacks directly reward the community.
1. INJs burn out forever
2. The community earns income from a pool of rewards for contributions.Please look forward to the next burn in November 🔥 pic.twitter.com/5KUiMDiyaI
— Injective🥷 (@injective) October 29, 2025
This strategic initiative sets Injective apart from most blockchain projects, making asset buybacks a community-driven event.
Rather than foundations and teams repurchasing tokens and burning them privately, Injective prioritizes user participation.
Layer 1 networks create a system that blends deflation and community incentives.
Such an approach allows active network participants to benefit from Injective’s growing ecosystem and align rewards between INJ holders, traders, and developers.
The announcement read as follows:
Injective is the only chain where token buybacks directly reward the community.
Notably, Injective publicly held its first community buyback event on October 23rd, with the actual buyback and token burn taking place a week later on October 27th.
Injective’s unique share buyback strategy
Injective’s community buyout mechanism employs two powerful and simple methods.
First and foremost, the platform permanently writes native tokens, reducing the overall supply.
We then distribute 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 everyone to participate in Injective’s deflationary mechanism. Participants commit INJ and in return receive a pro-rata share of the revenue generated across the Injective ecosystem. Replaced INJs are permanently burned, reducing the total supply of INJs.
In particular, the Community BuyBack basket consists of various tokens including USDT and INJ worth 10,000 Injective tokens.
This design introduces a robust deflationary model while encouraging loyal users.
Injective remains transparent and all repurchase information is available on its dashboard.
Introducing a deflationary economy with a twist
Injective’s latest announcement is part of the company’s broader mission to build a community-centric, sustainable token economy.
The project aims to reduce INJ inflation while encouraging long-term holding by burning native tokens monthly.
Most projects across the decentralized finance sector employ such mechanisms.
However, Injective takes a big twist by involving users in the process.
In addition to strengthening trust, such an approach allows INJ holders to remain involved in the growth of the ecosystem.
Holders also benefit from scarcity, as each buyback permanently reduces the supply of circulating assets.
The next burn will take place next month, in November.
INJ price outlook
The native token remained relatively calm over the past 24 hours as the bear market moved the entire market.
INJ is trading at $8.66. The stock consolidated between $9 and $8 from the previous week, up more than 3% in that period.
The company’s daily trading volume was up 17%, perhaps indicating renewed optimism following the stock buyback announcement.
Nevertheless, broad market sentiment will influence the altcoin’s price trajectory in the coming sessions.
