Most sectors, as well as the Internet itself, will be dramatically transformed by blockchain. We have a fantastic opportunity to invest in projects that have the potential to become the world’s next Apple, Microsoft, Amazon, or Google at an early stage.
Although there are a lot of fantastic projects and a lot of bad ones, only a few have the tokenomics to back them up.
I’ll be looking into Avalanche (AVAX) in this article, and as Bitcoin is the current king of cryptocurrency stores of value, I’ll be making comparisons throughout. Furthermore, these are my personal opinions, and they should not construe as financial advice. I specifically and highly recommend everyone to take advantage of this chance and do your own research before investing in any enterprise.
Distribution of Tokes
Specifically, the details of the token distribution are below. At inception, there was a creation of 360 million AVAX, with the remaining 360 million being used as Staking prizes over the course of decades.
Reward Staking
The first 360 million tokens issued at the start of the project. It has also the remaining 360 million tokens distributed over decades as staking rewards to validators.
Proceed of Seed Sales
Participants in the seed sale received 2.5 percent of the tokens. However, the price per token was $0.33, and they had a one-year vesting schedule, with 10% of their allocation released on mainnet launch and the remaining 22.5 percent released every three months over the course of the calendar year.
Selling Privately
Participants in the private sale received 3.5 percent of the tokens. The price per token was $0.5, and they had a one-year vesting schedule, with 10% of their allocation released on mainnet launch and the remaining 22.5 percent issued every three months over the course of the calendar year.
Option A1 Public Sale
Participants in the Public Sale Option A1 received 1% of the tokens. The price per token was $0.5, with a maximum allocation of $25k per user. Tokens have a one-year vesting schedule, with 10% of their allocation issued on mainnet launch and the remaining 22.5 percent released every three months throughout the course of the year.
Option A2 Public Sale
Participants in the Public Sale Option A2 received 8.3% of the tokens. The price per token was $0.5, with a maximum allocation of $2.5 million per user. Tokens have a 1.5-year vesting schedule, with 10% of their allotment released on mainnet launch and 15% released every three months for the next 18 months.
Option B Public Sale
Participants in the Public Sale Option B received 0.67 percent of the tokens. There was no vesting time and the price per token was $0.85.
Foundation Tokens
The Foundation will receive 9.26 percent of the tokens. These tokens are also for marketing, bounties, incentive programs, and other ecosystem-building initiatives. The vesting term for these is ten years.
Development & Community Endowment
The Community and Development Endowment will receive 7% of the tokens. Individuals and organizations who are developing fundamental technology and infrastructure on Avalanche, as well as aiding Avalanche through grassroots community growth and marketing, will receive these tokens. Avalanche Hub, Avalanche Ambassadors, Avalanche-X grantees, and others may be among them. The vesting time for any grants issued is one year from the date of award.
Incentive Program
A total of used 0.27 percent of the tokens. Participants who validated in Avalanche’s incentive-based testnet initiatives will receive these tokens. To earn up to 2000 AVAX, participants have to complete challenges. For the duration of the year, these tokens lock.
Strategic Partner Tokens
Strategic partners will also have 5% of the tokens. These tokens will also be for groups, organizations, and businesses that leverage the Avalanche technology and network to develop businesses. Moreover, entrepreneurs that want to use Avalanche to develop a firm that handles fast international remittance or financial institutions who want to tokenize assets on Avalanche through their own subnets are examples of these. The vesting period for these is four years.
Airdrop
2.5 percent of the tokens are in this category. These tokens are designated for distribution to other communities in order to increase the number of people who join the Avalanche community. Airdrops to various crypto communities, Reddit communities, developer forum communities, and even airdrops to exchange users are examples of this. The vesting period for these is four years.
AVA Team
AVA Labs’ founder and non-founding members will each receive 10% of the tokens. These have a four-year vesting duration, with all tokens voluntarily re-locked for four years by Team members, including founders, who had vested tokens prior to launch.
The recent public token sale, which included participants with an Ethereum Genesis address, raised $42 million in about 4.5 hours (and that was with a lengthy wait system). Leading venture capital firms such as Andreessen Horowitz participated in the private token auction (a16z).
