توكنوميكس Avalanche (AVAX)

The token economics of Avalanche (AVAX) are designed to secure the network through staking, incentivize ecosystem growth, and introduce deflationary pressure through transaction fee burning. The initial total token supply is capped at 720 million AVAX.

Issuance Mechanism

The AVAX token supply is capped at 720 million tokens. New tokens are issued primarily through staking rewards, which are paid to validators and delegators for securing the network.

• Staking Rewards Allocation: A total of 360 million AVAX (50.00% of the initial total token supply) is allocated for staking rewards.
• Distribution Timeline: These rewards are planned to be distributed over a period of at least ten years, although the rate and timeline are subject to potential changes via on-chain governance proposals.
• Incentive for Long-Term Staking: The staking reward function is designed to incentivize stakers to lock their tokens for longer periods. Staking for the maximum duration (one year) results in an additional 11.11% of tokens minted compared to staking continuously for the minimum duration (two weeks).

Allocation Mechanism

The initial total token supply of 720 million AVAX was distributed across various groups, with most allocations subject to vesting schedules to ensure long-term alignment.

Note: The table above reflects the initial total token supply allocations.

Usage and Incentive Mechanism

AVAX serves multiple utility functions within the Avalanche ecosystem, primarily focusing on network security, transaction settlement, and ecosystem development.

Core Utility and Security

1. Staking and Security: AVAX is used to secure the network via Proof-of-Stake (PoS).
   • Validator Requirements: Validators must self-stake a minimum of 2,000 AVAX and meet hardware requirements.
   • Delegator Requirements: Users can delegate a minimum of 0 AVAX to existing validators.
   • Staking Duration: The minimum staking time is two weeks, and the maximum is one year.
   • Delegation Fees: Validators are entitled to a delegation fee of at least 2.00% of the delegators’ staking rewards.
2. Transaction Fees and Burning: Network transaction fees across the P-Chain, X-Chain, and C-Chain are settled in AVAX. All transaction fees are burned, which introduces a deflationary mechanism to the token supply, driving value to all token holders through increased scarcity.
3. Governance (Future): Avalanche intends to establish an on-chain governance feature. Validators (those staking over 2,000 AVAX) will have the sole right to propose changes to network parameters, such as minimum staking amounts, staking duration, token emission rates, and the fee mechanism. All AVAX tokenholders will be able to vote on these proposals. As of November 25, 2024, this governance system is not yet live.

Ecosystem Incentives

The Avalanche Foundation actively uses AVAX to bootstrap ecosystem growth through various incentive programs:

• Avalanche Rush: A liquidity mining program launched in August 2021 to incentivize DeFi applications to launch on the C-Chain and bootstrap liquidity.
• Avalanche Multiverse: A Subnet growth fund launched in March 2022, allocating 4.00 million AVAX to users of eligible Subnets to accelerate their growth.
• Memecoin Rush: A phase-based incentive program launched in March 2024 focused on promoting participation within the memecoin ecosystem.
• Grants and Funding: Programs like the infraBUIDL() program (funding infrastructure development up to $250,000 per project) and Retro9000 (a $40 million retroactive funding program for developers) provide grants in AVAX or USD to support developers and infrastructure.
• Airdrops: The Avalanche Foundation allocated 18.00 million AVAX (2.50% of the initial total token supply) for airdrops to incentivize the user base, including an ongoing airdrop for users who bridge assets from Ethereum and Bitcoin to Avalanche.

Locking Mechanism and Unlocking Schedule

AVAX tokens allocated to the project team, foundation, and partners are subject to multi-year vesting schedules, acting as a locking mechanism to ensure long-term commitment.

Vesting Schedules

• Project Team: 10.00% of the initial supply is subject to a four-year vesting period.
• Avalanche Foundation: ~9.26% of the initial supply is subject to a 10-year vesting schedule.
• Strategic Partners: 5.00% of the initial supply is subject to a four-year vesting schedule.
• Airdrop Allocation: 2.50% of the initial supply is subject to a four-year vesting schedule.
• Public Sale Option A1: Tokens sold in this option were subject to a one-year vesting schedule with quarterly unlocks, with 10.00% available at mainnet launch.
• Public Sale Option A2: Tokens sold in this option were subject to an 18-month vesting schedule with quarterly unlocks, with 10.00% available at mainnet launch.

Future Unlock Events

The following table details the next ten scheduled AVAX unlock events, which are part of the long-term vesting schedules for various allocations: