What is the issuance and circulation of AVAX coins?

During its ICO in 2020, Avalanche issued 72 million AVAX tokens, helping to raise $42 million, and currently, around 78.4% of the maximum supply of 720 million AVAX coins are in circulation.

Oct 03, 2024 at 08:06 am

Issuance of AVAX Coins

1. Initial Coin Offering (ICO): Avalanche held its ICO from September 15-21, 2020, raising $42 million. A total of 72 million AVAX tokens were issued during the ICO.
2. Seed and Private Sales: Avalanche also conducted seed and private sales prior to the ICO, issuing additional AVAX tokens.

Circulation of AVAX Coins

The total maximum supply of AVAX coins is 720 million. The current circulating supply, as of March 17, 2023, is approximately 565 million AVAX. This means that around 78.4% of the total AVAX supply is currently in circulation.

Distribution of AVAX Coins

The AVAX coins are distributed as follows:

• Seed Sale: 10% (72 million AVAX)
• Private Sale: 35% (252 million AVAX)
• ICO: 10% (72 million AVAX)
• Avalanche Core Team and Advisors: 15.20% (109.44 million AVAX)
• Treasury Holding: 29.80% (214.56 million AVAX)

Token Economics

The AVAX token has several use cases within the Avalanche ecosystem:

• Staking: AVAX holders can stake their coins to validate transactions and earn rewards.
• Governance: AVAX holders can participate in governance by voting on proposals that affect the network.
• Transaction Fees: AVAX is used to pay transaction fees on the Avalanche blockchain.
• Platform Currency: AVAX can be used to purchase goods and services on the Avalanche platform.

Conclusion

The issuance and circulation of AVAX coins have played a crucial role in the development and growth of the Avalanche ecosystem. The availability of AVAX has allowed users to stake, participate in governance, pay transaction fees, and purchase goods and services on the platform. The continued use and adoption of AVAX are expected to drive its further circulation and enhance the overall value of the Avalanche network.