$AVAX Breakdown: Where the Money Comes From, Where It Goes, and What Gives It Value
【Issuance Mechanism】Mainnet launched in 2020. Initial annual inflation started at 7.5% and adjusts dynamically based on the staking ratio (long-term target: <10%); there is no hard cap.
【Revenue / Sources of Value】Subnets are customizable L1s focused on institutional on-chain funds and RWAs; validators and subnet deployments consume AVAX.
【Burn Mechanism】80% of each transaction fee is burned, while 20% goes to validators—an inbuilt deflationary engine.
【Core Model】A high-performance PoS L1 led by Ava Labs, differentiated by its “customizable subnets.”
In a nutshell: It uses subnets to capture institutional demand for customization. Bull case = RWA and institutional chains gain traction; bear case = subnets operate in silos and liquidity becomes fragmented.
(The above is for educational purposes about the mechanism, not investment advice. DYOR.)
【Issuance Mechanism】Mainnet launched in 2020. Initial annual inflation started at 7.5% and adjusts dynamically based on the staking ratio (long-term target: <10%); there is no hard cap.
【Revenue / Sources of Value】Subnets are customizable L1s focused on institutional on-chain funds and RWAs; validators and subnet deployments consume AVAX.
【Burn Mechanism】80% of each transaction fee is burned, while 20% goes to validators—an inbuilt deflationary engine.
【Core Model】A high-performance PoS L1 led by Ava Labs, differentiated by its “customizable subnets.”
In a nutshell: It uses subnets to capture institutional demand for customization. Bull case = RWA and institutional chains gain traction; bear case = subnets operate in silos and liquidity becomes fragmented.
(The above is for educational purposes about the mechanism, not investment advice. DYOR.)