- This topic has 10 replies, 2 voices, and was last updated 8 months, 1 week ago by murt.
- Friday, April 1st, 2022 at 00:39 #206166Dry_Tortuga_IslandParticipant
Not trying to FUD or anything. I bought a chunk of avax in preparion for the Defikingdoms launch, thinking it would be on the avalanche chain. But it turns out that DFK just made their own chain using avax tech… A new chain that uses $jewel for gas fees.
So how does avax benefit from this? Besides some degree of guaranteed interoperability with this new chain, why hold avax?
Thanks for any info…Friday, April 1st, 2022 at 00:39 #206167Ergonio
As far as I know they still need to bundle their transactions and write it to the avalanche chain every once in a while, thus burning avax in the process for gas feesFriday, April 1st, 2022 at 00:39 #206168dragrimmar
here’s a better question.
if we continue to see the trend of everyone building their own subnet on Avalanche, why would anyone bet _against_ the combined network effect of Avax?
All subnets are connected to the primary subnet (X/P/C chains), and eventually there’ll be native cross-subnet transfers.
Subnets also keep Avalanche futureproof; Let’s say EVM gets dated (which arguably it is already), then if the new hot DeFi Virtual machine gets created, we can spin up a subnet using that tech and all that value created on the c-chain simply migrates over and starts using DeFi 2.0.Friday, April 1st, 2022 at 00:39 #206169samsamps
Pretty sure avax pair will be one of the top pairs when farming begins.
Having more development on a chain and even a subnet will drive adoption. I know quite a few people including myself using this as an opportunity to enter the avax ecosystem. Building digital communities creates value.Friday, April 1st, 2022 at 00:39 #206170TheSavageParadox
So these chains you are talking about are subnets. Subnets like the avax chain require validators, these validators though must also validate the avax chain as well as the subnet to ensure the ecosystem is stable. Because of this as more subnets are deployed and increasingly from larger institutions the demand for avalanche tokens will increase as these institutions begin deploying validators themselves to ensure there subnets are secure.Friday, April 1st, 2022 at 00:39 #206171Any-Ad9522
In addition to all the other good points here, in order to be a validator of a chain or subnet you need to stake a certain amount of Avax. Currently this is 2,000avax I think. So not only will more subnets mean more demand for staking but also more locked supplyFriday, April 1st, 2022 at 00:39 #206172dub_rado
Their nodes will still validate on the avax chain also, as mentioned gas fees etcFriday, April 1st, 2022 at 00:39 #206173clarky07
i think main benefit is validators for subnet are also validators for mainnet. which means 2000 avax bought and locked away for each one, as well as making mainnet stronger and more decentralized.
it’s also possible some subnets will use avax as gas, though many won’tFriday, April 1st, 2022 at 00:39 #206174TheBak3dOne
Because of the deflationary tokenomics and the fact that all Validators have to hold AVAX and also validate the 3 primary chains, bringing scalability.Friday, April 1st, 2022 at 00:39 #206175Tales4rmTheCrypt0
You’re actually correct and a lot of people will overlook this to justify their own tendency for being an avax-maxi. Most Ethereum L2’s are already cheaper than AVAX, which defeats the purpose it was originally created for in the first place.Friday, April 1st, 2022 at 00:39 #206176murt
Why buy ETH if apps can just make their own token with the tech? Unless… empowering developers to build with freedom in a low cost, high performance environment can generate an avalanche of innovation and value. Then, maybe you should buy AVAX.
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