Avalanche weighs zero-inflation validator reward model

Avalanche Foundation economists have proposed scrapping the current model of paying validator rewards through new token issuance and shifting to a zero-inflation model that would reward validators based on value actually generated by the network, Crypto Briefing reported. Avalanche validators currently receive annual rewards of around 6% to 7% through newly issued AVAX tokens, but the structure dilutes the value of existing holders. The report added that all transaction fees on Avalanche’s C-Chain are burned, creating a structural limitation under which validators do not directly share in fee revenue even as network activity increases. Against that backdrop, the proposal aims over the long term to halt new token issuance and move to a revenue-sharing model that would redistribute part of network fees and protocol revenue to validators, bringing inflation toward 0%.