Burn Auction

60% of the trading fees paid by users are collected by Injective (the remaining 40% are sent to Exchange applications built on top of Injective, read more here) Each week, an auction is held to allow community members to use INJ to bid for the basket of trading fees collected by Injective that week.

At the end of the auction, the winning bidder receives the full basket of assets and the winning bid (paid in INJ) is burned. This creates a deflationary pressure to the INJ token supply.