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Coin Profile on Avalanche (AVAX): The Layer-1 Platform Focused on Acceleration

In 2018, a pseudonymous group calling themselves “Team Rocket” released the Avalanche (AVAX) concept on the InterPlanetary File System, the decentralized file sharing protocol also known as IPFS. Two years later, the team, led by a Cornell college professor, launched the Avalanche mainnet and issued the AVAX token, now a top 20 cryptocurrency and the topic for today.

What is Avalanche (AVAX)?

Avalanche is an open source, decentralized blockchain platform for building both enterprise and decentralized applications (dApps) with interoperability and scalability as its main features. Through a system of interoperable subnets, Avalanche boasts “infinite” throughput and the fastest transaction times amongst Layer-1 blockchains like Bitcoin, Ethereum, and Polkadot.

Avalanche_AVAX_Coin_Profile_Price_HistoryAVAX Price Evolution

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The Avalanche platform utilizes multiple chains including a Primary Network; with some chains being application-specific and others geared towards core functions. The Primary Network itself has 3 chains:

  • Platform Chain (P-Chain) is the base staking platform, managing validators and enabling developers to create subnets (which are similar to Polkadot’s Parachains)
  • Contract Chain (C-Chain) for EVM compatible smart contracts
  • Exchange Chain (X-Chain) for token issuance and exchange

AVAX uses a Proof-of-Stake consensus mechanism, where validators on the Primary Network have a say in the network’s direction. Validator parameters that affect voting weight include staking amount and minting rate, while onchain decisions are made through a crowd oracle. The minimum amount that a validator must stake is 2,000 AVAX tokens.

Project status

  • 2018: Platform concept is shared on the InterPlanetary File System (PFS) and Ava Labs is founded.
  • March 2020: AVA codebase for the Avalanche consensus protocol becomes open-source
  • July 2020: AVAX token sale ends
  • Sept. 2020: Mainnet launch

Team

  • Emin Gun Sirer is the CEO and Founder of Ava Labs, the company behind the Avalanche protocol. He also was an Ivy League professor at Cornell for 10+ years, after attaining a B.S.E. in computer engineering at Princeton and his PhD in computer science at the University of Washington.
  • Kevin Sekniqi is the COO and Chief Protocol Architect at Ava Labs. He has a PhD from Cornell and a long history of technical research from NASA to Microsoft.
  • Full information on Avalanche team members is publically available.

Making headlines
Ava Labs enters funding round with $5 billion valuation
AVAX price drops 11% after alleged whistleblower points to weaponized litigation
New ATH for Avalanche and its effects on AVAX performance
Boba launches the first Layer-2 on Avalanche

Does it have staying power?

Competitive?
According to the Avalanche website, when compared with Layer-1 blockchains like Bitcoin, Ethereum, and Polkadot, Avalanche has a much higher transaction throughput level (infinite with subnets) and faster transactions (<2 sec/ts). AVAX is a top 20 crypto with a large backing and a deep development team with significant credentials.

Hiring?
Ava Labs has 36 current listings, primarily in engineering, marketing, and operations roles.

Social traction
The Avalanche ecosystem has well over a million followers with Telegram channels available in 21 languages.

Ever been hacked?
Multiple DeFi platforms built on Avalanche have been hacked:

  • Vee Finance suffered a $35M exploit in September of 2022.
  • In a flash loan attack, an attacker exploited the Avalanche Blockchain for $371k, also in September of 2022.
  • Zabu Finance was exploited on Avalanche via a smart contract vulnerability for $3.2M. It was believed to be the first hack on the Avalanche ecosystem, in September of 2021.

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$AVAX Tokenomics

AVAX has a capped supply of 720M and is the native token for the Avalanche protocol. Block producers and validators stake AVAX and are incentivized through staking rewards. All transaction fees on the network are paid out in AVAX via burning.

Token allocations

Avalanche_AVAX_Coin_Profile_TokenomicsAVAX Token Allocations

Vesting:
All tokens (except for those issued via Public Sale Option B) are held to a vesting schedule:

  • 1-year vesting: Seed Sale, Private Sale, Public Sale Option A1, Community & Development
  • 1.5-year vesting: Public Sale Option A2
  • 4-year vesting: Strategic Partners (4 years from launch), Airdrop (4 years from grant date)
  • 10-year vesting: Foundation, Incentivized Testnet Program

Total supply
404,229,626 AVAX

Max supply
720,000,000 AVAX

Funding
$5.94M - Private seed sale - Feb. 2019
$12.60M - Private staking round - June 2020
$37.58M - Public token sale - July 2020

The full list of Avalanche backers includes Dragonfly Capital, Bitmain Technologies, and Galaxy Digital.

Token utility

  • Staking
  • Rewards distribution
  • Transaction fees on all Avalanche operations
  • Speculation

Decentralized?

  • 40,315 daily active addresses
  • 1299 validators
  • Decentralized governance

Burning Mechanism
AVAX transaction fees are burned.

Code Audits
Yes.

Bug bounty?
Yes.

Next up for Avalanche:

While no official roadmap is available on public AVAX channels, a very active Medium account keeps the community updated with recent upgrades, news, and launches.

Continue your DYOR…
Website
$AVAX on Quadency
Blockchain explorers
Documentation
Github
Twitter
Discord

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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.