I used to love AVAX and thought it belonged in a robust bear market portfolio. But I tried to scour the internet in order to ascertain its emission schedule. The closest I could find was Messari pegging its inflation rate ~20%. I looked at their tokenomics whitepaper, and the most it says is the emission rate. The total cap % starts at much higher thresholds than BTC's emission schedule does which may explain the high inflation rate. But why hold this coin over the bear market if my investment get's absolutely annihiliated due to inflation? Yes I know AVAX burns the transaction fee and it's "deflationary", but that strikes me as a buzzword. Inflation (in the case of currency supply) is a function of currency created and currency destroyed. If more currency is created than destroyed, it is inflationary, and vice versa. If AVAX legitimately is a good crypto I want to invest into it, but this inflation gig is a huge catch.
What about AVAX's inflation rate?
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The inflation of the protocol itself is only around 5-6%, but there's still a not small amount of locks to open. It's theoretically not inflation, but supply will keep growing higher for another 2-3 years.
Most AVAX is staked or delegated to nodes (64% and going up) and the rest of the AVAX is in DeFi.
Also every new node (for subnets too) needs to lock up 2000 AVAX minimum.
Inflation is like 6%.
it will all get staked or delegated to Nodes as is already the case and thats what already happened with the unlocks.
every token unlock was actually Bullish for Avalanche so far.
uh oh user found out about the TURKISH levels of supply inflation
here come the roaches
picrel
the current YoY circulating supply inflation rate is 64.1%. (285m/173m) - 1.
>inflation
We have a 720 million AVAX hardcap, noob. It's not inflation, and since it's a known limit you can consider it priced in.
emission refers to currency creation which for AVAX is done through staking rewards. The staking rewards for validators is about 9.5%. Only about 60% of AVAX is staked which means that current emission is about 5.7%
token unlocks don't create currency and thus don't affect price as you can see in your pic, there is no correlation. only staking rewards add tokens to system.
Source? TVL has fallen over 80% for AVAX since the peak in November 2021.
Do you know what happens to the burned fees? Are they sent to some inaccessible wallet, or are they literally removed from existence?
If the circulating supply goes parabolic (it did on Messari as that user posted), then effectively you are injecting more currency into the circulating supply, causing inflation. If I had 10 trillion dollar notes in circulation, but I had 10 trillion dollars stored away and then suddenly injected all that money into the economy, that causes inflation. Economics 101. It's not just the mechanism, it's the exposure of that mechanism to the economy.
>TVL has fallen over 80% for AVAX since the peak in November 2021.
TVL is measured in dollars, right? Of course it makes sense, since all alts including avax dumped >80%...
Avax is still doing really well, relatively speaking. The ecosystem is thriving and recently set new daily transaction ATH's.
>token unlocks don't create currency
But they DO dilute the available liquid supply, which is all that matters for price. Price is set on the margin, not by stakers or vested coins, but by liquid supply. Imagine if the FED printed $10 trillion dollars, but then set it aside and said "okay, we're going to give these to you but slowly over a ten year period" - would that not be inflationary on the liquid supply of dollars? AVAX is doing the same thing but with chuckie cheese tokens. Just like every other creeptoe, a more or less well crafted scam.
That's not how inflation works at all. Inflation isn't defined by a hard cap. It is defined by how fast the supply of an asset or commodity expands, or how rapidly prices rise within a given time interval.
>If I had 10 trillion dollar
we literally just came up with the same example independently within a 2 minute time window, wtf
The token burn massively decreased after the biggest tx making dapps moved to their subnet bro
Burn is a nothingburger right now. Subnets being able to use their native tokens as gas was a huge mistake in terms of capturing value for AVAX.
Ok. But the Avax price is denominated in dollars, and its worth is currently purely speculative (as with 99% of all crypto aside from Link). It's not impossible that 720 million is already priced in.
>t. pic related
vscout.io
staking ratio is sitting at 66%
Avalanche's DeFi TVL falling 80% sounds about right since the token value fell about that much from ATH
no idea, I think the efficient way is to erase them from existence. But sending fees to 0x0000000000000... works just as well. The extra transaction seems wasteful though.
there is no price correlation even with the massive early unlocks, so it's pretty obvious it doesn't cause inflation. All unlocks going into 2023 are relatively tiny and only go to the team and community fund. No more VC unlock FUD from here on out. At least not any that makes sense.
It's fallen over 60% measuring it with AVAX but you didn't address my question about supplying a counter-source
to be clear I made good money on AVAX last year, I like using it
but it can easily go back to single digits with this level of liquid supply inflation. It's all just a question of demand at this point, and I don't see a whole hell lot of demand in the near future
>there is no price correlation even with the massive early unlocks
Then you would agree that there is no correlation between the $7 trillion of stimulus in 2020 and the inflation (devaluation of currency) of 2022?
There is no direct correlation, yes, that is because the effect of increasing liquid supply is felt with a lag.
What do you want a source for? I didn't think it was clear. (I'm not the user you asked for a source by the way)
>acting like AVAX is going to be relevant in 5 years when Ethereum still exists
>acting like bitDAO doesn't buy hundreds of ETH every single fucking day
>Acting like people still give a shit about this network
ETH is king. Seethe.