Thread by @CryptoSeq

1/ $LUNA has seen incredible growth over the last year from a $200 Million market cap to now nearly $9 Billion🚀

If you like $LUNA's tokenomics then you will want to have a look at Injective's tokenomics $INJ 🤯

$INJ Market Cap $300 Million

Thread looking at $LUNA and $INJ 👇

2/ TerraUSD $UST is an algorithmic stablecoin which aims to achieve price-stability by algorithmically adjusting its supply according to fluctuations in demand.

Rather than try to explain it over many tweets the video below gives an overview 👇

3/ In basic terms of whats good for $LUNA Price:

Strong UST demand = More $LUNA burned = Higher $LUNA Price

Fall in UST demand = More $LUNA minted = Lower $LUNA Price

4/ Thus an entire economy has been created to drive demand for UST through Mirror Protocol, Anchor Protocol, Alice Finance and more, as well as expanding $UST to other blockchains, which in turn will benefit $LUNA holders creating positive feedback loops.

5/ Currently however the vast majority of $LUNA isn't actually being burned but more temporarily taken out of circulating supply and then being redistributed to be used for community growth fund (to create more demand for UST) as well as Oracle and Staking rewards.

6/ Total supply of LUNA has decreased from 1 Billion to around 996 Million with over $2 Billion $UST created. However in the upcoming Columbus 5 update this process will change and going forward 100% of the $LUNA used in the swap will be burned, decreasing the supply much faster.

7/You also have to consider what happens in reverse market conditions as well though, as seen with the recent price of UST falling at times to as low as $0.92 resulting in significant amounts of LUNA being introduced into circulating supply and thus negatively effecting the price

8/ But importantly it still managed to maintain its peg despite adverse market conditions.

With increased UST adoption, new DAPPs being built for the Terra ecosystem and changes so that 100% is getting burnt, then the growth looks set to continue.

9/ Like Terra, Injective is also a blockchain build using the Cosmos SDK but instead of a stablecoin being the centre of the ecosystem, Injective provides a fully decentralised, front-running resistant, order book based DEX to trade any market with zero gas fees.

10/Injective is far bigger than one DEX though, it's a protocol that will allow anyone to build any type of exchange on top. From Institutional grade to entry level. Whether it be Spot, Derivatives, NFTs, Equities, Commodities, Forex, any market can be traded without restrictions

11/Every 2 weeks 60% of the trading fees across the various pairs for all exchanges are auctioned off. The participants have to bid using $INJ which they have to buy from the market. The winning bid in $INJ is then 100% burned reducing supply and leading to price increase of $INJ

12/ The other 40% is used as incentives to relayers that provide liquidity for the platform and increase volume (and thus the amount of $INJ being burned) creating positive feedback loops as worked so well for Binance.

13/ Full EVM compatibility is is coming for Injective later this year enabling any Ethereum DAPP to easily integrate with Injective to benefit from lightning fast performance, 2 second finality and powerful cross-chain interoperability through IBC as well as bridges to Layer 1s.

14/ Similar to Mirror and Anchor Protocol with Terra, Lending, Savings, Insurance DAPPs and more building on Injective will all create positive feedback loops and incredible network effects and ecosystem around the DEX leading to more $INJ being burned.

15/ Crypto Exchanges saw $4.8 Trillion Spot volume and $5.5 Trillion Derivatives volume in May alone. If Injective Protocol captures just 1% of that it would mean around $185.4 Million of $INJ is burnt every month 🔥🤯
cryptoseq.medium.com/why-injective-…

16/ The entire market cap of $INJ is only $300 Million. With potential for such large amounts being continuously bought from the market and🔥 each time leading to the supply being drastically reduced which then further amplifies the effect on price for the next buy 2 weeks later

17/ The $INJ buy back and 🔥mechanism can lead to exponential price rises per $INJ without the market cap increasing that fast due to the potentially enormous amounts of $INJ being burned every 2 weeks. You could even do x100 on your investment and the market cap stay the same🤯

18/ Despite those high figures they are still tiny compared to the other markets Injective is targeting such as the tens of trillions in commodities, $115 trillion equities market, $2.4 Quadrillion forex market.

19/ You don't need to worry about what happens in a downturn in the markets with $INJ either as regardless of bull or bear market trading on exchanges will always happen, leading to continuous demand for $INJ to be burnt.

20/ With IBC Support providing composable interoperability with other Cosmos zones as well as creating bridges to all the main Layer 1 blockchains, Injective looks set to become not only the main hub in Cosmos but one of the main DeFi hubs for the entire new internet economy 🚀

21/ With the first derivatives pair in testing this week and trading limits being lifted whilst in the testing phase then the Buy back and burn of $INJ begins and set to see incredible growth. 🔥🔥

Exciting times ahead 🚀
cryptoseq.medium.com/why-injective-…