Avalanche Network Sees Significant Reduction in Transaction Fees Following December Upgrade
The recent upgrade to the Avalanche blockchain has led to a significant reduction in usage fees, making it cheaper for users to interact with the platform.
Transaction Costs Plummet
Since the implementation of the Avalanche9000 upgrade on Dec. 16, transaction costs have dropped by an average of 75%. This is according to data from Flipside and Bitquery, which show that the number of transactions has increased by 38% to an average of 354,691 per day.
The Avalanche9000 upgrade is a significant enhancement to the original model, offering improved performance and efficiency.
Key upgrades include increased processing power, enhanced memory capacity, and optimized software architecture.
This results in faster computation times, reduced latency, and improved overall system responsiveness.
The upgrade also enables support for advanced features and applications, expanding the device's capabilities and versatility.
Avalanche’s Multichain Structure
Avalanche boasts a multichain structure consisting of C-Chain, P-Chain, and X-Chain. The C-Chain handles smart contracts, while the P-Chain manages staking and validator coordination. The X-Chain is responsible for processing asset transfers.
Key Changes in the Upgrade
The Avalanche9000 upgrade comprised seven improvement proposals, including ACP-125, which lowered the base fee to run smart contracts on the C-Chain from 25 nAVAX to 1 nAVAX. Additionally, the validator fee was replaced with a monthly subscription of 1 to 10 AVAX, making it more accessible for projects of all sizes to introduce layer 1 (L1) protocols on Avalanche.
The Avalanche9000 network is exploring various upgrade proposals to enhance its scalability, security, and user experience.
The proposals aim to address congestion issues, improve transaction processing times, and increase the overall efficiency of the network.
Key proposals include the implementation of a new consensus algorithm, optimization of the current protocol, and integration with other blockchain networks.
These upgrades are designed to future-proof the Avalanche9000 ecosystem and position it for long-term growth and adoption.
Goals and Objectives
The primary goal of the upgrade was to reduce costs across the entire Avalanche tech stack. By lowering C-Chain fees and eliminating capital requirements for L1 validators, Ava Labs aimed to make it easier and more affordable for users to interact with the platform.
