Avalanche subnets and AVAX tokenomics: hard cap and full fee burn
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Positions Avalanche as an open platform of heterogeneous subnets, expecting revenue to grow with subnet adoption. Contrasts its 720 million hard cap, declining inflation and full tx fee burn with ongoing emissions on Polkadot and Cosmos.
Key claims
AVAX hard cap is 720 million
Entire tx fee is burnt, unlike EIP-1559 which burns part
Subnet adoption should lift total revenue
My thread #Avalanche and its subnet functionality, that makes $AVAX evolve into an open platform of heterogenous & interoperable blockchains (subnets) ❄️
Expecting total revenue to skyrocket with increasing subnet adoption 🔺
@tokenterminal
Btw, also a big fan of the $AVAX tokenomics, that also set it apart from many other PoS blockchains
While many PoS networks, including @Polkadot and @cosmos, have opted for a more flexible ongoing emissions schedules, #Avalanche has a hard cap of 720 million $AVAX and an inflation rate that diminishes exponentially as more tokens enter circulation
Moreover, $AVAX implements a burning mechanism similar to $ETH's EIP-1559 but with the entire tx fee being burnt rather than just aa part of it. Asset & blockchain (subnet) creation fees as well as all tx fees on its three core chains are also burnt
QUOTING @zerokn0wledge_
0/ Let's have a look at the #Avalanche network architecture & the #AVAX subnets. A powerful feature of @avalancheavax, that basically makes $AVAX a layer 0 rather than a layer 1 chain 🔺❄️ My 🧵 on $AVAX & its subnets (0/16) 👇
0/ Let's have a look at the #Avalanche network architecture & the #AVAX subnets. A powerful feature of @avalancheavax, that basically makes $AVAX a layer 0 rather than a layer 1 chain 🔺❄️ My 🧵 on $AVAX & its subnets (0/16) 👇