Altaris: Injective's the Most Important Upgrade Ever

1. Background - Ambition to Build a Better Blockchain Infrastructure

1.1 Consistency Shines Again

When I first introduced Injective, I noted that its greatest strength lies in its “consistency.” While other blockchains often neglect the chains they create after launching their mainnet or use “decentralization” as an excuse to stop improving their infrastructure, opting instead to sell the tokens they received as team allocation to accumulate wealth, Injective stands out.

Decentralization is not synonymous with neglect. True decentralization means involving the community in crucial decision-making processes to collaboratively improve the infrastructure they use. In this regard, Injective’s efforts are noteworthy. In January of this year, they established a financial institution-friendly infrastructure by creating the blockchain's first RWA module through the Volan upgrade. Now, they have enhanced their overall blockchain infrastructure with the Altaris upgrade.

1.2 Introducing Altaris

So, what changes does Altaris bring to Injective? Let's explore them one by one.

1.2.1 Overall Performance Enhancement of the Blockchain

When discussing blockchain performance, one typically refers to network scalability, smart contracts, interoperability, and developer tools. Through the Altaris upgrade, Injective has significantly improved all these aspects. In terms of chain speed, they have greatly enhanced it by optimizing data and resource management. For smart contracts, they have introduced WASM 2.0, allowing developers to use smart contracts more flexibly. Interoperability has been improved by adopting IBC hooks and Packet Forward Middleware (PFM), which enhances cross-chain interoperability.

1.2.2 RWA Oracle

While the previous Volan upgrade introduced the first RWA module, the Altaris upgrade further enhances the safety of operating RWAs by introducing a dedicated RWA oracle. This will enable Injective to become a more financial institution-friendly blockchain. This development is also in line with the ETPs (Exchange Traded Products) of Injective token launched by 21 shares (Four Pillars wrote about this before)

1.2.3 A Better Economic Model

Injective has demonstrated an ongoing commitment to enhancing its tokenomics, a effort that continues with the implementation of the Altaris upgrade. A key feature of this upgrade is the introduction of a Pool Auction contract to the existing token burn mechanism. This innovative addition enables smart contract participation in auctions, allowing users to collectively pool funds into contracts to compete in high-value auctions that typically involve hundreds of thousands of dollars. By facilitating community-driven token auctions and burns, this feature significantly increases accessibility and introduces a more dynamic element to Injective's deflationary model. This approach not only democratizes participation in the token burn process but also potentially amplifies its impact on the overall tokenomics of the ecosystem.

Furthermore, Injective has modified its existing fee discount model (which previously offered trading fee discounts based on 30-day trading volume and INJ token staking amount). With this update, traders can now receive discounts of up to 50% on trading fees, making Injective an even more trader-friendly platform. Notably, they have also adjusted the tier levels to ensure that even traders who don't trade frequently can maximize their benefits. Lastly, they've introduced a staking grant feature that allows existing Injective stakers to allocate a portion of their staked amount to traders, helping them reduce trading fees. Through this mechanism, stakers can indirectly create additional incentives for traders to use Injective. From a staker's perspective, having more traders use Injective is beneficial as it generates more fees. Therefore, this initiative is considered to align the interests of both stakers and traders effectively.

Additionally, Injective has upgraded its bridge to enhance speed and security, simplified the process of listing assets on the perpetual options market, and introduced a partial liquidation model to make trading more flexible. These initiatives collectively aim to improve the experience for traders and users.

2. Takeaway - A Relentless DeFi Powerhouse

When observing the blockchain industry, it is common to hear people claim they are “working hard,” yet tangible results are often lacking. However, Injective has completed two major updates just this year. I believe that most blockchains are currently in a transitional phase. Therefore, it is a period where they must continuously adjust their infrastructure according to market conditions and their objectives.

Creating a safer, faster, and more user-friendly blockchain is easier said than done. Teams that consistently strive to achieve such results are indeed rare. Will Altaris be the end? Certainly not. I believe that Injective will continue to develop its infrastructure in the coming years, providing a financial infrastructure that more people can use comfortably. This is why I remain continuously interested in Injective and watch its progress with high expectations.

What makes Injective’s upgrades fascinating is the evident intention to align the incentives of users, traders, stakers, and builders through various changes. I believe that no blockchain has yet managed to perfectly align the incentives of these four stakeholders. However, Injective seems to be gradually achieving this alignment, making its future developments highly anticipated.