Avalanche proposes zero-inflation validator reward model

Avalanche Foundation economists have proposed eliminating the current validator reward model that relies on new token issuance, shifting to a zero-inflation model rewarding validators based on actual network-generated value. Currently, Avalanche validators earn annual rewards of approximately 6% to 7% through newly issued AVAX tokens, which dilutes the value for existing holders. Additionally, all transaction fees on Avalanche’s C-Chain are burned, preventing validators from directly benefiting from fee revenue despite increased network activity. The proposal aims to stop new token issuance in the long term and implement a revenue-sharing model that redistributes a portion of network fees and protocol revenue to validators, targeting an inflation rate approaching 0%.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.