Proof of Stake
Emin Gün Sirer
September 21, 2020
- Avalanche is: scalable, secure, decentralized, governable, democratic, interoperable, and flexible.
- $AVAX is a capped-supply token, with a maximum cap of 720 million tokens. While capped, $AVAX is still governable. The rate at which the maximum cap is reached is subject to governance.
- Since Avalanche is leaderless, there are no “rich-get-richer” compounding effects. Validators that lock their stake for longer are rewarded more and are also incentivized to stay online and operate correctly as their rewards are based on proof-of-uptime and proof-of-correctness.
- Fees are not paid to any specific validator. Instead, they are burned, thus increasing scarcity of the $AVAX