Cost-Effectiveness Analysis of Avalanche Dedicated Chain

Recently, some well-known projects have launched or planned to launch dedicated chains based on the Avalanche technology architecture. This trend stems from the Avalanche 9000 upgrade implemented last December, which is regarded as the "merge" of Avalanche, fundamentally restructuring the validator economic model.

The ACP-77 proposal changes the originally high fixed staking requirement (2000 AVAX) to a low-threshold pay-as-you-go model. According to an analysis by a certain research institution's analyst, this significantly reduces the initial costs of launching the Avalanche L1 chain, making it potentially more economical than some well-known rollup or application chain solutions.

Choosing projects on Avalanche L1 also allows for full utilization of the existing infrastructure of C-Chain (the liquidity center of Avalanche). This includes deposit channels with centralized exchanges, as well as standard on-chain infrastructure like oracles, RPC services, and indexers. If these services were to be built independently, the cost could reach up to $13 million. Avalanche's inter-chain communication protocol enables these functions to be easily shared across different chains.

The value capture mechanism is another important factor that attracts project parties. Avalanche L1 can create clear value accumulation channels for project tokens by managing its own set of validators, issuing block rewards, and other means. In contrast, most layer two network tokens lack substantial value capture pathways beyond governance.

In addition, a certain development toolkit also supports highly customizable L1 chains, which offer greater flexibility than most current rollup-based L2 solutions.

There are several key points worth noting about the value accumulation of AVAX tokens:

1. All transaction fees on the C chain will be completely burned, with an average of about $453,000 burned per month in 2025.

2. The verification nodes continue to maintain the mainnet by staking AVAX, with a total staked amount of approximately 8 billion dollars.

3. According to the new proposal, each Avalanche L1 validator node is required to pay a certain amount of AVAX as a fee every month.

4. Transactions involving the C chain will indirectly incur a small amount of ICM (inter-chain communication) fees, which will also be destroyed.

Avalanche's development strategy is to promote long-term growth by reducing short-term costs. Recent upgrades have significantly lowered the transaction fees on the C chain, which have decreased by 96% overall since early 2025. The upcoming "asynchronous execution" upgrade is expected to further reduce costs.

Although the value capture scale of Avalanche has not yet reached significant levels, with the continuous operation of 66 active L1 chains in the ecosystem and the addition of more new chains, Avalanche is expected to build strong network effects.