INJ Token Surges After Buyback-and-Burn Cycle and Stockdrop Rewards

Injective's INJ token surged by 3.44% in just nine hours following its scheduled buyback-and-burn cycle and associated Stockdrop rewards on September 30th.

The event is part of a recurring mechanism funded by protocol revenue, where fees are converted into market purchases of INJ, which are then permanently destroyed, supporting the token's price. This process combines programmatic demand with a shrinking float, making it structurally price supportive.

Recently, the SEC clarified that token buybacks conducted on functioning networks do not classify tokens as securities, and coverage specifically mentioned Injective's onchain, revenue-funded INJ buyback and burn mechanism as a direct beneficiary. This removed regulatory overhang from the process.