AVAX

Understanding Avalanche's native token: AVAX

AVAX is a unique digital currency used in the Avalanche network. Users use AVAX for gas to use Avalanche.

Key Points About AVAX:

• AVAX as Gas: In the Avalanche network, AVAX is used as 'gas' for transactions, acting like fuel to power network activities (transactions).

• Limited Total Quantity: There can only be 720 million AVAX coins. This number is fixed and is known as the 'hard cap.'

• Initial Coins and Rewards: At the start, 360 million AVAX were created. Since then, more AVAX has been made as rewards for those helping the network, known as 'staking.'

• Burning Fees: All fees in the Avalanche network are burned, meaning they are permanently deleted from supply. This includes fees from different parts of the network like the X, C, P-chain, and Subnets using AVAX as gas (the fuel for transactions).

• Rewards for Helpers (Validators): Validators earn AVAX by helping to keep the network running. They get rewards from a specific part of the network (the P-chain) and these rewards are new AVAX, not recycled from burned fees.

• What happens as we get close to 720 million AVAX? As we get closer to the 720 million limit, the amount of new AVAX created as rewards gets smaller. This way, we won't exceed the limit.

• Can validators work on different parts of the network (Subnets)? Yes, validators can earn rewards by supporting many Subnets as long as their computers are strong enough. The more Subnets they support, the more AVAX they can earn.

• Will AVAX become scarce with more Subnets? Yes, as more Subnets are created and need AVAX, the number of available AVAX in circulation will decrease, making it more scarce.

• Where to find more detailed info? For those who want to dive deeper, the "Avalanche Native Token ($AVAX) Dynamics" whitepaper provides comprehensive details.