TL;DR
- Avalanche transaction fees dropped by 75% after the December upgrade, making the network more affordable.
- The number of transactions increased by 38%, reaching an average of 354,691 per day, reflecting a high level of adoption.
- The upgrade included improvements such as reducing base fees for smart contracts and introducing new subscription options for validators, benefiting both developers and users.
Avalanche, a blockchain known for its focus on decentralized finance (DeFi), has seen a significant shift in its economic structure since the implementation of the Avalanche9000 upgrade on December 16. This technological improvement has successfully reduced transaction fees by an average of 75%, resulting in a notable increase in network activity, with daily transactions growing.
According to data from Flipside and Bitquery, the usage fees, known as gas, have dropped by an average of 75% compared to the months prior to the upgrade. Additionally, the number of transactions has increased by 38%, reaching an average of 354,691 daily transactions.
A More Accessible and Affordable Network for Everyone
One of the key changes in the upgrade was the implementation of ACP-125, a proposal that significantly reduced the base fee for running smart contracts on the C-Chain, from 25 nAVAX to just 1 nAVAX. It’s important to note that 1 nAVAX represents one-billionth of an AVAX. Furthermore, validator fees were modified, eliminating a fixed fee of 2,000 AVAX and replacing it with a subscription model ranging from 1 to 10 AVAX. This adjustment opens up new opportunities for projects of all sizes to integrate layer 1 (L1) protocols on Avalanche’s blockchain, promoting greater innovation and scalability.
The main objective of these changes was to make every component of the Avalanche ecosystem more affordable, lowering fees on the C-Chain and eliminating capital requirements for L1 validators. Stephen Buttolph, Ava Labs’ chief protocol architect, explained that these improvements are designed to make Avalanche a more scalable and accessible platform, benefiting both small and large projects.
The Future of Avalanche: How Will This Update Affect Its Growth?
The fee reduction and increase in transaction activity not only benefit users but also position Avalanche as a more competitive network within the blockchain ecosystem. The infrastructure improvements make the blockchain more appealing to developers seeking to create decentralized applications (dApps) and smart contracts in an efficient, cost-effective way.
With these changes, Avalanche is getting closer to its goal of creating a more accessible blockchain platform, which could generate greater interest and adoption in the near future.
