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Avalanche Blockchain's December Upgrade Cut Usage Fees by 75%
The upgrade was designed to make Avalanche cheaper. It worked.
What to know:
- Transaction costs on the Avalanche blockchain have dropped 75% on average since the Dec. 16 upgrade, according to Flipside.
- The number of transactions has jumped by more than 35%.
The cost of using Avalanche, a DeFi-focused smart-contract blockchain, has slumped since the implementation of the Avalanche9000 upgrade on Dec. 16, sending the number of transactions up by more than a third.
Since the upgrade, the proof-of-stake blockchain's usage fees known as gas have averaged roughly 75% less than in the months beforehand, data from Flipside and Bitquery show. The number of transactions has increased by 38% to an average of 354,691 a day.
STORY CONTINUES BELOW
Avalanche, the world's fifth-largest smart-contract blockchain by the market value of its native token AVAX, boasts of a multichain structure of C-Chain, which handles smart contracts, P-Chain for managing staking and validator coordination and X-Chain for processing asset transfers.
The upgrade comprised seven improvement proposals, including ACP-125, which lowered the base fee to run smart contracts on the C-Chain to 1 nAVAX from 25 nAVAX. One nAVAX is a billionth of an AVAX.
The upgrade also replaced the hefty validator fee of 2,000 AVAX with a monthly subscription of 1 to 10 AVAX, opening doors for projects of all sizes to introduce layer 1 (L1) protocols on Avalanche.
The goal of the upgrade was to make every component of the Avalanche tech stack cheaper by reducing C-Chain fees and removing capital requirements for L1 validators, Stephen Buttolph, Ava Labs' chief protocol architect, told Decrypt in November.
Omkar Godbole
Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team based in Mumbai, holds a masters degree in Finance and a Chartered Market Technician (CMT) member. Omkar previously worked at FXStreet, writing research on currency markets and as fundamental analyst at currency and commodities desk at Mumbai-based brokerage houses. Omkar holds small amounts of bitcoin, ether, BitTorrent, tron and dot.
