What is Injective and what is its role in crypto?
Injective is a blockchain for finance, and INJ pays fees, staking and governance. It uses Cosmos software with cross chain modules for developers.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
Injective is not a company stock or a trading platform. It is a network that developers use to build finance products. The INJ coin is separate from those apps, and apps can use other assets too.
What is Injective and its role?
Injective is an interoperable Layer 1 blockchain designed for finance apps and cross chain trading. Its role is to give developers a base network for markets such as decentralized exchanges, prediction markets, and lending protocols. INJ is the native coin. It is used for fees, staking, governance, and some apps accept it as collateral.
How does Injective work?
Injective runs on Cosmos software, which lets separate blockchains communicate. On top of that base, it adds modules made for finance, such as order books and derivatives tools. General purpose chains try to support any kind of app, while Injective centers on finance. Its cross chain bridging works with most blockchains.
Who created Injective and when?
Injective Labs created the project. The INJ token launched in October 2020, and the mainnet went live in November 2021. The team built the chain to support open financial markets.
What legal issues has Injective faced?
In June 2023, the SEC sued Binance and Coinbase and named several tokens as securities. The agency did not name INJ in either lawsuit.
Frequently asked questions
Some apps cover network fees for users through fee delegation, so you may not need to hold INJ to try them. The network's native gas token is still INJ, and staking and governance use it.
You store INJ in a wallet that supports Injective, such as a Cosmos compatible wallet or a hardware wallet. Staking locks INJ with network validators to help secure the chain, and an unbonding period usually applies when you unstake.
It depends on the app. Injective is a permissionless network, but many DeFi front ends block US users or limit products. Check each app's terms before you connect a wallet, because US rules can change.
