economics of avalanche 101: buy needs to be more than sell
people buy avax bc they either believe in the project, or bc they need spend it for gas fees on the c-chain
we have to assume that no one believes in the tech, so that if someones does, it's all the better. in this scenario, we assume that buying pressure for staking is non-existent (all have bought avax already, or they buy but volume is not meaningful)
we also assume that ALL staking rewards are sold immediately (worst case scenario)
there are 212M AVAX staked, which earn 5.5% of rewards annually, so 11.7M AVAX (234M USD) is the sell pressure
according to our indexer, in the past 12 months 432,000 AVAX (8.6M annualized) have been burned on c-chain fees IN TOTAL
buy pressure from fees is just 3.7% of the sell pressure!
THREE POINT SEVEN
ofc not all rewards are sold, but we need to take the super-conservative-worst-case scenarioto be able to change things
one thing that we can do is increase base fee by 100% to be on par with hyperliquidEVM and still much cheaper BNB, arbitrum and many more
the other thing we can do is rethink the way staking rewards are distributed so that there's less pressure
and no, the NET potential rewards for avg stakers won't change - it'll likely increase by at least 2-3x
stay tuned


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