Question: What is AVAX?

Answer: AVAX is the native token of the Avalanche network: it is used to pay fees, for staking/validation, and for operating subnets.

Question: Why are fees on Avalanche “burned”?

Answer: On Avalanche, part of the transaction fee is destroyed (burned), which reduces total supply versus a scenario without burning; this does not guarantee a price increase, but it changes the tokenomics.

Question: What is the difference between C-Chain, P-Chain and X-Chain?

Answer: C-Chain is for smart contracts and dApps (EVM-compatible environment), P-Chain is for staking/validators and subnet management, and X-Chain is for basic asset transfers (depending on the wallet/service, it may not be the main chain for typical DeFi use).

Question: What is a Subnet and what is it for?

Answer: A Subnet is a separate, custom blockchain within the Avalanche ecosystem with its own validators and rules; it is used for games, enterprise use cases, or specific DeFi products to isolate load and tune network parameters to the goal.

What is Avalanche (AVAX)

Avalanche is a high-performance L1 platform for dApps and custom blockchains (L1/Subnets), focused on low fees; AVAX is used for network fees and staking.

Launch 21.09.2020 Avalanche

Who created it

Ava Labs — Emin Gün Sirer, Kevin Sekniqi, Maofan “Ted” Yin.

Why it was created

AVAX was created as the native token of the Avalanche network to perform “system” functions within the platform: paying for network operation, supporting network security via staking, and underpinning the economy of applications and subnets.

How it’s used

Paying network fees across the Avalanche ecosystem
Staking (validators/delegators) to secure the network and earn rewards
Deploying and using EVM smart contracts on the C-Chain
Using DeFi (DEXs, lending, derivatives) and interacting with NFTs/gaming assets in the Avalanche ecosystem
Transferring assets and liquidity within the ecosystem (including interaction between applications and L1/Subnets)

Risks

High volatility
Large-actor risk: large holders and market making can amplify price moves (squeeze/dump), especially during low liquidity and thin order books
Downward price-pressure risk around unlock/vesting dates due to the planned increase in circulating supply
Risk of transfers, swaps and DeFi activity freezing if finality/block production stalls due to client bugs (this has happened before)

FAQ

Question: What is AVAX?: Answer: AVAX is the native token of the Avalanche network: it is used to pay fees, for staking/validation, and for operating subnets.
Question: Why are fees on Avalanche “burned”?: Answer: On Avalanche, part of the transaction fee is destroyed (burned), which reduces total supply versus a scenario without burning; this does not guarantee a price increase, but it changes the tokenomics.
Question: What is the difference between C-Chain, P-Chain and X-Chain?: Answer: C-Chain is for smart contracts and dApps (EVM-compatible environment), P-Chain is for staking/validators and subnet management, and X-Chain is for basic asset transfers (depending on the wallet/service, it may not be the main chain for typical DeFi use).
Question: What is a Subnet and what is it for?: Answer: A Subnet is a separate, custom blockchain within the Avalanche ecosystem with its own validators and rules; it is used for games, enterprise use cases, or specific DeFi products to isolate load and tune network parameters to the goal.