What is Avalanche (AVAX)?

Avalanche is a blockchain platform for smart contracts and apps. Its coin is AVAX. Its main idea is that projects can launch their own blockchains, called L1s, that connect to the main Avalanche network.

Where it came from

Avalanche's token design was published in June 2020. Its busiest chain is the C-Chain, which runs smart contracts (Lesson 7) and uses a fee system based on Ethereum's.

How it works

Avalanche uses proof of stake (Lesson 8).

• Validators must stake at least 2,000 AVAX by default to help run the main network, for between two weeks and a year.
• Rewards depend on being online and responsive, and on how long the stake is locked.
• Own blockchains. Projects can run separate chains with their own rules. An upgrade called Avalanche9000, live from December 2024, cut the cost of launching one by 99.9%. Their validators no longer have to validate the main network too.

The same upgrade cut the minimum fee on the C-Chain from 25 to 1 nAVAX, a tiny fraction of an AVAX.

Supply

• The total is capped at 720 million AVAX.
• Half, 360 million, existed at launch.
• The rest is created over time as staking rewards.
• Transaction fees are not paid to anyone. They are destroyed, which takes AVAX out of circulation.

What people use it for

People use apps on the C-Chain, stake AVAX and use it to pay fees. Companies and games run their own Avalanche chains.

Risks to know

• Many chains, many bridges. Moving tokens between Avalanche chains and other networks relies on bridges. Lesson 33 explains why bridges are a common target.
• Staking locks your coins. Validator stakes are locked for the chosen period. Lesson 50 covers how to judge a staking offer.
• New supply. Staking rewards add new AVAX until the cap is reached.
• Price swings. AVAX can fall far and fast, like other coins.

Learn more

Lesson 7 covers smart contracts, Lesson 8 explains proof of stake, and Lesson 33 covers networks and bridges.