General
What is the total cap of tokens?
What is the total cap of tokens?
There can only be 720 million AVAX in circulation, it is hard capped.
How many tokens are already minted?
How many tokens are already minted?
360 million were minted at genesis. And staking rewards have been minted continuously since the start.
What happens to fees?
What happens to fees?
Fees are burned, this includes all fees from the X, C, P-chain, and L1s that utilize AVAX as its gas token. These fees are not re-used, they are burned. To view the amount of fees burned thus far, please visit the following page.
Where do validator rewards come from?
Where do validator rewards come from?
Validator rewards are minted on the P-chain. This is independent of the fees that are burned, meaning fees that are burned are not “re-used” to reward validators.
On Avalanche validators not only earn rewards in AVAX for validating the primary network, but they also have the opportunity to validate and earn rewards from validating L1s. There is no limit to the number of L1s a validator can support as long as the hardware can meet their requirements of them.
What happens when the circulating supply gets close to 720 million, how will validators get rewarded?
What happens when the circulating supply gets close to 720 million, how will validators get rewarded?
Reward rates are adjusted as the supply gets closer to the 720 million cap. The closer it gets to that amount, the lower the rate becomes. At the same time, fees are burned independently, preventing the token count from reaching 720 million.
On Avalanche validators not only earn rewards in AVAX for validating the primary network, but they also have the opportunity to validate and earn rewards from validating L1s. There is no limit to the number of L1s a validator can support as long as the hardware can meet their requirements of them.
As L1s increase in count, will there be a scarcity of tokens in circulation since all L1 validators must stake AVAX?
As L1s increase in count, will there be a scarcity of tokens in circulation since all L1 validators must stake AVAX?
Yes, more tokens will be staked on L1 validators thus reducing the circulating amount of tokens. Any L1 that utilizes AVAX as the gas token will also increase scarcity as it will burn tokens.
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.