Avalanche (AVAX)

The native token on Avalanche is called AVAX.

At the base level, the AVAX token will be used for : rewarding validators for validating on the default subnet paying for transaction fees on the default subnet creating a new subnet or blockchain sending an asset to the X-Chain on-chain governance participation.

You can’t unstake your AVAX tokens. A recipient is required when you submit your initial staking/lock-up period as a delegator or validator. Once the end of your staking period/lock-up period is reached, then rewards are automatically distributed to the recipient address set initially before the lockup.

AVAX tokens are rewarded for validating on the “default” subnet. Future subnets may reward validators and stakers in another asset.

Validators do not distribute the rewards to delegators as this is done at protocol level by Avalanche in an automated way.

There is no highest SRR wallet. The Avalanche wallet is the best wallet to use. You can alternatively use the AVAX Ledger wallet.

The reward rate is not a fixed parameter, since token holders can determine the emission rate. The emission rate depends on several factors: the percentage of the total supply staked by the node, the duration of the stake (using a minimum of two weeks and a maximum of one year), node uptime, and node latency. AVAX’s emission rate depends on how much of it is staked. If the staking ratio is only 50%, the supply grows at a slower rate and it will take much longer to reach the 720 million coin hard cap (the staking ratio is currently just below 70%).

here will be no slashing on the default subnet. Avalanche does not slash nodes’ stakes if they behave maliciously — they simply do not receive a reward. That being said, future subnets are able to set their own slashing penalties.

Who or what controls my staked AVAX token? You maintain custody of your AVAX at all times. There is no bonding or unbonding period.

Avalanche does not have governance. Avalanche is run and controlled by the core team.

All validators on Avalanche must validate on the “default subnet”. This subnet consists of three chains: Platform Chain – This chain stores the network metadata (i.e., what subnets and blockchains exist, who is validating what, etc.). Exchange Chain – This chain supports asset creation and trading. Contract Chain – This chain is an Ethereum Virtual Machine instance that runs on Avalanche’s Avalanche consensus. Asides this requirement, validators are free to choose which subnets they want to validate on, and they do not have to run multiple nodes to validate on multiple subnets, unless it is a requirement by the subnet.

The total supply of the AVAX token is 720 million.