Canary outlines how staking would work inside INJC ETF

Injective (INJ)has outlined how the planned Canary Staked INJ ETF, or INJC, is designed to handle staking inside the fund, describing a structure in which most of the ETF's INJ would be delegated to validators and net rewards would be restaked. The explanation matters because it shows how staking income, custody and redemption liquidity are intended to work together, even as the article itself does not establish ETF approval or trading status, according to Injective's Oct. 21, 2026 post.

How the fund is designed to stake INJ

Injective said Canary Capital, as sponsor, would run the staking program through third-party staking providers rather than operate its own validator. The fund's custodian would control the private keys for staked INJ, while the staking providers would handle delegation to validators on the Injective network. The fund is designed to stake most of its INJ and keep the remainder unstaked so it can meet creations and redemptions without waiting through the unbonding period, which Injective says is 21 days.

Rewards would flow back to the fund's custody wallets after staking fees shared by the provider, sponsor and custodian, then be included in the fund's daily net asset value and restaked. Under that structure, shareholders would not receive cash distributions from staking; instead, rewards would be reflected in the value of the ETF shares through a larger INJ balance behind each share, Injective said.

Network context and what can change

Injective operates on proof of stake, where validators confirm transactions and delegators assign INJ to those validators to help secure the chain. Rewards are paid in INJ, and the amount received depends on network conditions and validator performance. Injective's explanation says staking rewards are not guaranteed and may vary over time, while the share of INJ staked by the fund can also change and staking may not continue for the life of the ETF.

The company also highlighted the main tradeoffs. Unbonding takes 21 days, during which tokens cannot be moved and do not earn rewards. Slashing is also possible if a validator misbehaves or is offline for long periods, although Injective said Canary does not expect that outcome. Recovery from such losses is not guaranteed.

What the filing context adds

Background material supplied with the source notes that a Canary registration-statement amendment dated Sept. 24, 2026 described an approximately 6.8% annualized reward rate under Sept. 15, 2026 assumptions, after community tax, validator commission and observed block timing. That estimate was dated and illustrative, not a guaranteed current yield. The same background says undelegation requires 21 days and that slashing fractions were zero as of Sept. 15, 2026, although those parameters can change.

INJ was last quoted at $8.24 on Oct. 22, 2026, down 6.78% over 24 hours, with a market capitalization of $820.92 million, according to the provided market data. Those figures describe the token, not the ETF itself, and do not verify the fund's status.