The upgrade introduced a continuous fee model that dramatically reduces costs:
Reduced Running Costs: L1 validators now pay approximately 1.33 AVAX per month instead of staking 2,000 AVAX
No Primary Network Validation: L1 validators only need to sync the P-Chain, significantly reducing hardware requirements
Pay-As-You-Go: The continuous fee adjusts based on network usage, similar to cloud services
Regulatory Flexibility: Organizations can now run L1s without validating the permissionless C-Chain
This transformation makes it feasible for startups, enterprises, and institutions to launch their own sovereign blockchains on Avalanche, opening the door to a new wave of innovation in permissioned and regulated blockchain applications. More information about the upgrade can be found here.
For any additional questions, please view our other knowledge base articles or contact a support team member via the chat button. Examples are for illustrative purposes only.