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?
360 million were minted at genesis. And staking rewards have been minted continuously since the start.
What happens to fees?
Fees are burned, this includes all fees from the X, C, P-chain, and Subnets 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?
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 Subnets. There is no limit to the number Subnets 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?
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 so it prevents the token count from reaching 720 million.
On Avalanche validators not only earn rewards in AVAX for validating the primary network, they also have the opportunity to validate and earn rewards from validating Subnets. There is no limit to the number Subnets a validator can support as long as the hardware can meet their requirements of them.
As Subnets increase in count, will there be a scarcity of tokens in circulation since all subnet validators must stake AVAX?
Yes, more tokens will be staked on Subnet validators thus reducing the circulating amount of tokens. Any Subnet that utilizes AVAX as the gas token will also increase scarcity as it will burn tokens.