Value Accrual

The future is token driven. Rewards distributed by L1s to validators and stakers depend on each network. These can be inflationary token rewards, share of revenue, and more.

Growing Validator Demand from L1s

• The creation of more independent L1 blockchains increases the need for validators who maintain and secure these networks, paying AVAX to the P-chain (all burned).

• Validators can operate across multiple L1s, earning multiple streams of rewards.

Primary Network Staking and AVAX Supply Lock-Up

• Validators stake a minimum of 2,000 AVAX and earn AVAX staking rewards.

• Increased validator participation and LSD usage lock up AVAX supply, reducing market liquidity.

• Lower circulating supply from locked AVAX and validator fees leads to greater scarcity and potential value appreciation.

AVAX Burn Mechanism

• All transaction fees on the Primary Network are burned, permanently removing AVAX from circulation.

• Track burned fees in real-time: AVAX Burn Stats

Rewards and AVAX Demand

• More L1s lead to more rewards, increasing demand for AVAX as validators and participants seek to maximize earnings.

• Users can participate in staking directly or through Liquid Staking Derivatives (LSDs) to earn AVAX and L1 rewards.

Fixed Supply Model

• AVAX has a hard cap of 720 million tokens, ensuring a deflationary economic model as network adoption grows.

These mechanisms contribute to AVAX’s long-term value accrual by driving demand while reducing supply over time.