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Avalanche proposes zero-inflation rewards for validators, shifting from token minting to value-based payouts.

Protocol Fundamentals
27 Aug 2026
Crypto Briefing
View Source
Neutral
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Avalanche Foundation economists propose replacing validator rewards from new AVAX token minting with value-based rewards tied to network revenue. This aims to eliminate inflation-driven rewards, which dilute existing holders, by sharing fees or protocol revenues with validators instead. The change addresses the challenge of a capped token supply and the current model where transaction fees are burned, not shared. While a near-term proposal modestly reduces inflation, the zero-inflation model is a longer-term goal to sustain network security without creating new tokens, though it risks fluctuating rewards if network activity drops. The Foundation is gathering community feedback before any major changes.

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