Avalanche's Fee Cut Boosts Transactions by 38%

Avalanche, a leading smart-contract blockchain, has recently implemented a significant upgrade, Avalanche9000, which has led to a 75% reduction in transaction fees. This move has been instrumental in boosting blockchain growth, with daily transactions surging by 38% to over 354,000. The upgrade, which went live on December 16, has made Avalanche's smart-contract operations significantly cheaper, thereby increasing blockchain adoption.

The upgrade, which implemented seven key improvement proposals, included ACP-125. This proposal cut the base fee for running smart contracts on Avalanche's C-Chain from 25 nAVAX to just 1 nAVAX. Additionally, validator fees were replaced with a more manageable monthly subscription of 1 to 10 AVAX. Stephen Buttolph, chief protocol architect at Ava Labs, explained that the goal was to make every aspect of the Avalanche tech stack more affordable.

Avalanche's multichain structure enhances its usability. Its C-Chain handles smart contracts, the P-Chain coordinates staking and validators, and the X-Chain processes asset transfers. This structure allows Avalanche to offer a high degree of interoperability and scalability, making it an attractive platform for developers and users alike.

Following the upgrade, Avalanche's native token AVAX has gained momentum, reflecting increasing demand and renewed investor interest. At the time of writing, AVAX is sitting at $33.93, a testament to the positive impact of the fee reduction and increased network activity.