From the perspective of cost and threshold, how do top IPs like FIFA and NXPC interpret their choice to issue exclusive chains on Avalanche?

Author: Donovan Choy

Compiled by: Tim, PANews

Recently, a few well-known projects have launched (or plan to launch) their own chains based on the Avalanche technology architecture.

Why choose Avalanche over Ethereum?

The answer must start with Avalanche9000, the largest scale upgrade in the history of the network implemented last December, which can be described as Avalanche's version of "The Merge". It has completely restructured the validator economic model.

In the ACP-77 proposal, the high fixed staking cost requirement for Avalanche validator nodes (2000 AVAX) is replaced by a low-threshold pay-as-you-go model.

Blockworks Research analyst Effort Capital's assessment data shows that the reduced upfront costs make launching a sovereign Avalanche L1 chain quite attractive, with costs potentially even lower than the Celestia rollup solution or Cosmos application chain.

Further reduce costs.

A team is currently creating the first layer chain of Avalanche, which can leverage the infrastructure built on the C chain (the liquidity hub of Avalanche).

For example, the first layer network of Avalanche provides users with the convenience of a centralized exchange deposit channel through the C chain, without having to pay a high proportion of tokens as direct integration fees.

"This is one of the core value propositions of Avalanche," Ava Labs Chief Strategy Officer Luigi D’Onorio DeMeo told me in an interview, "From a market entry perspective, this can save development teams a significant amount of time and millions of dollars in integration costs."

For most standard on-chain infrastructure, including oracles, RPC services, indexers, block explorers, NFT markets, etc. (which are already available on C Chain). If built from scratch by an independent L1, the estimated startup cost could be as high as $13 million.

All of this relies on the Avalanche inter-chain communication protocol, through which Avalanche's layer network can easily transfer assets between the C-chain and other chains, thereby fully leveraging the aforementioned functional advantages.

The connection between Chain C and Henesys (the exclusive chain of "MapleStory") is now the most active two-way communication route in the international chat system, carrying thousands of messages every day.

Source: L1beat.io

The value capture mechanism is another major reason for launching the Avalanche Layer 1 network.

The first layer blockchain of Avalanche can build a clear value accumulation channel for the project's native token through guiding its own set of validators, distributing block rewards (or using the native token as Gas fees), among other methods.

Ethereum's Layer 2 networks cannot utilize the same mechanisms, so the tokens of the projects have extremely limited or even completely absent value capture channels aside from governance functions (with a few exceptions).

Finally, AvaCloud's HyperSDK also supports a high degree of L1 chain customization, which stands in stark contrast to the constraints faced by the current L2 solutions based on rollup technology stack, showcasing significant advantages.

The value accumulation of AVAX

In light of the value accumulation issues faced by ETH and ATOM, it is necessary to study how AVAX achieves value accumulation.

First of all, unlike the token burn mechanisms of Solana or Ethereum, 100% of all transaction fees on Avalanche's C-chain will be burned. In 2025, the average monthly burn value of its AVAX tokens is approximately $453,000.

Validator nodes continue to stake AVAX to maintain the operation of the main network, with the current staked amount being approximately 8 billion dollars (360.2 million AVAX).

Thirdly, according to the requirements of the ACP-77 proposal, each Avalanche L1 validator node is required to continuously pay a small amount of AVAX as a fee every month. Depending on the number of validator nodes, this fee fluctuates between hundreds to thousands of AVAX. Blockworks Research analyst Boccaccio made detailed calculations for the Gunzilla chain (see the link illustration for the calculation report).

Whenever a trading operation involves the C chain, a small amount of ICM (inter-chain communication) transaction fees generated indirectly will be destroyed.

The development path of Avalanche

Ultimately, Avalanche's business strategy is quite familiar: subsidizing long-term growth by reducing upfront investment.

Ethereum is also adopting the same strategy, actively sacrificing short-term execution fee revenue in order to obtain data availability fees in the long-term development. In pursuit of long-term growth, Celestia is currently actually providing data availability services for free.

"One of the common misconceptions about Avalanche is that it does not intend to pursue a high-speed chain," DeMeo told me, asserting that this statement is not true.

Both ACP-125 and ACP-176 (Octane) have implemented a reduction in the minimum base fee on the C-chain and introduced a dynamic fee mechanism to optimize gas fees, both of which have contributed to an overall 96% reduction in C-chain fees since the beginning of 2025.

DeMeo continued: "As part of the network's ongoing implementation of the 'Asynchronous Execution (ACP-194)' plan this year, costs will continue to decrease. Currently, Avalanche's value capture has not yet reached a significant scale, but the development path is already clear. With 66 active L1 chains continuously operating in the ecosystem and more chains coming online, Avalanche is fully equipped to create its own network effect advantages."