Avalanche The community managed to burn 439,000 AVAX tokens worth $16.7 million through transactions last week.
As we reported as Koinfinans.com, the fees collected from transactions made on the Avalanche network are burned through an automatic mechanism. This is based on similar logic to the design made with EIP-1559 on the Ethereum network. In the ETH network, some of the transaction fees are transferred to validators, while the rest is burned. In AVAX, it is all burned.
It is very important that the increase in wages burned is at a significant level. While only a few thousand AVAX were burned each week between May 2022 and October 2023, 39,000 AVAX were burned in one day in April 2023. There was a jump to 85,000 AVAX at the end of November and 40,000 AVAX two weeks later. However, no week has come close to this week’s close.
This increase was largely linked to rising transactions on Avalanche and other blockchains. According to the Dune Analytics dashboard created by Hildobby, inscription-related transactions were responsible for 75% of the transaction fees paid and therefore burned on AVAX last week. AVAX users paid $13.8 million in fees for these transactions.
Inscription-based tokens are created by writing text into regular blockchain transactions and using an off-chain numbering system to keep track of them. They were created as a workaround on the Bitcoin network due to the lack of native support for the tokens. They have recently spread to many other blockchains for various reasons, one of which is that they can be moved more cheaply than native tokens.