Avalanche Emerges as a Top Choice for Blockchain Projects
In recent months, a slew of high-profile projects such as FIFA, Maplestory, Off the Grid, and Inversion have chosen to launch or have plans to launch on Avalanche’s tech stack. The question arises: why Avalanche over Ethereum?
The answer lies in Avalanche9000, the network’s largest upgrade that took effect last December. This upgrade, akin to Ethereum’s "The Merge," brought about a significant transformation in validator economics on the Avalanche network. As part of ACP-77, the high fixed stake cost requirements for Avalanche validators (previously 2000 AVAX) were replaced with a more cost-effective pay-as-you-go model.
The reduced upfront costs have made launching a sovereign Avalanche L1 chain more attractive, potentially even cheaper than opting for a Celestia rollup or a Cosmos Appchain, as estimated by Blockworks Research’s EffortCapital.
Moreover, teams launching an Avalanche L1 chain can take advantage of the infrastructure already built on the C-Chain, Avalanche’s liquidity hub. This includes offerings such as CEX ramps, oracles, RPCs, indexers, explorers, NFT marketplaces, and more. Leveraging these existing resources can save teams significant time and costs, potentially saving millions in integration fees.
Key to this seamless integration is Avalanche’s Interchain Messaging (ICM) protocol, which allows for easy asset movement between Avalanche L1 chains and the C-Chain. This interoperability is exemplified by the active back-and-forth route between the C-Chain and Henesys (Maplestory’s chain), facilitating thousands of messages daily.
Value accrual is another compelling reason for projects to launch on Avalanche. By bootstrapping their own validator sets and issuing block rewards or using their native token as gas, Avalanche L1 chains can create clear value accrual streams for their tokens. This stands in contrast to Ethereum L2s, which have limited avenues for token value accrual outside of governance mechanisms.
AvaCloud’s HyperSDK provides further customization options for Avalanche L1 chains, offering a competitive edge over L2s that face constraints when building on current rollup tech stacks.
In terms of value accrual, AVAX stands out with 100% of all C-Chain fees being burned, validators staking AVAX to validate the primary networks, and monthly continuous fees in AVAX paid by Avalanche L1 validators. These mechanisms contribute to the overall value accrual of the AVAX token.
Looking ahead, Avalanche’s business strategy aligns with a focus on reducing upfront costs to drive long-term growth. This approach mirrors Ethereum’s efforts to attract data availability fees in the long run by subsidizing short-term execution fees to L2s. With its robust infrastructure, cost-effective model, and focus on value accrual, Avalanche is positioned as a top choice for blockchain projects seeking a scalable and efficient platform for their endeavors.
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