$AVAX AVAX is the native token of the Avalanche platform, playing an important role in the Avalanche ecosystem. Here are some key information about AVAX:

• Use: AVAX tokens are used to secure the network through staking, trade between different tokens, pay transaction fees, and provide a basic unit of account across multiple subnets created in Avalanche. All transaction fees on the main network's blockchains, creation and minting fees of digital assets, blockchain creation, and subnet creation need to be paid with AVAX. These tokens are subsequently burned, thus reducing the total supply.

• Deflationary Effect: If the amount of AVAX burned exceeds the amount minted as rewards for validators, the total number of tokens will decrease, further leading to a deflationary effect.

• Issuance: AVAX has a maximum issuance cap of 720 million, which will never be exceeded. In contrast, Ethereum does not have a fixed token issuance limit, which will increase according to network demand to maintain security.

• Consensus Mechanism: Avalanche employs a novel consensus method that guarantees security, fast confirmation, and high throughput without sacrificing decentralization.

• Network Structure: Avalanche uses the concept of "network of networks" to describe its network and its capabilities. It consists of three blockchains that manage different functions: Platform Chain (P-Chain), Contract Chain (C-Chain), and Exchange Chain (X-Chain).

• Transaction Fees: The transaction fee structure of Avalanche varies based on network congestion, and all fees are burned, making AVAX increasingly scarce over time.

• Participation Incentives: High uptime and quick response times can increase the number of AVAX rewards that network participants receive for processing AVAX transactions.

• Governance: Avalanche is typically governed by a proof-of-stake mechanism. AVAX holders need to stake AVAX in exchange for the right to validate AVAX transactions. Participants holding the most AVAX are most likely to be selected as validators for Avalanche blocks. Additionally, holding AVAX tokens is also a requirement for participating in voting on Avalanche governance proposals.

• Market Performance: According to the latest market news, the circulating supply of AVAX is 405.93 million, with a market cap of 10.67 billion USD, and a 24-hour trading volume of 478.71 million USD.