Avalanche is a layer 1 decentralized blockchain network built to support complex applications and custom blockchain functions. Avalanche aims to be a leading Ethereum alternative, competing with other popular chains such as Solana and Cardano for the title of "Ethereum Killer."
The Avalanche network can handle up to 6,500 transactions per second and has comparatively low gas fees thanks to its scalable architecture. A wide variety of decentralized applications (dApps) are hosted by Avalanche, which resulted in a record-breaking total value locked (TVL) of $12 billion USD in late 2021. At the same time, the abundance of dApps on the Avalanche blockchain increased demand for the AVAX token and had a favorable impact on the cryptocurrency's price.
Avalanche also employs an Ethereum Virtual Machine (EVM), which makes it much easier and faster for developers to port and deploy Ethereum-based smart contracts and applications to the Avalanche network. With the familiar user experience, new users can be easily and quickly onboarded to the Avalanche chain.
AVAX is Avalanche's native token, required to pay the necessary gas fees when completing transactions on the Avalanche network. In addition, AVAX token holders can vote on protocol governance issues and have a say in the future development of the blockchain.
AVAX price and tokenomics
The maximum token supply of Avalanche is 720 million, with around 295 million tokens currently in circulation.
On November 21, 2021, AVAX hit an all-time high of $146. This represents a period when new and innovative DeFi platforms chose the Avalanche network to host their applications. On top of that, Avalanche was a standout performer during the 2021 bull run.
In a series of private and public funding rounds, 360 million AVAX tokens were minted and sold to early investors, raising $55 million. They are distributed in the following manner: The Avalanche founders and project receive 19.3%, investors receive 16%, and pre-mined rewards and community airdrops receive 64.7%. AVAX tokens will be continuously distributed to holders via staking rewards over the next several decades. Furthermore, the Avalanche supply schedule outlines consistent token unlocks over several years.
About the founders
The Avalanche network was founded by Ava Labs. Emin Gün Sirer, a well-known computer scientist, leads the Ava Labs venture. Gün Sirer is a Cornell University associate professor best known for his contributions to peer-to-peer systems and computer networking. He was also a pioneer in Bitcoin scaling solutions. Kevin Sekniqi and Maofan Yin, both of whom have PHDs in computer science, are other senior members of the Ava Labs team.
What makes Avalanche unique?
The Avalanche network has a unique framework that sets it apart from competing chains. It is made up of several blockchains, each of which serves a distinct purpose with different responsibilities.
1) Avalanche Exchange Chain
Avalanche's X-Chain is built using a directed acyclic graph, exclusively used to send and receive money. By isolating these transactions, the Avalanche network reduces congestion and enables faster, cheaper payments.
2) Avalanche Platform Chain
Avalanche's P-Chain is used for staking and validation. On the P-Chain, Avalanche users can become validators to receive staking rewards.
3) Avalanche Contract Chain
Avalanche's C-Chain is the execution layer that is fully smart contract-compatible and can support dApps. The C-Chain is the home of all Avalanche DeFi protocols and NFT functions.
