Effect of reference on avalanche value (Avax)
Lavanche (Avax), a decentralized platform for creating, management and implementation of intelligent contracts, has gained popularity lately. One of the key features that makes Avax attractive is its review mechanism that allows users to get rewards in the form of new Avax tokens to maintain its existing shares. However, the question remains: Does the value of Avex affect? In this article, we deepen how the re -evaluation affects the price of the avalanche (AVAX).
What is the review?
Bet involves blocking or “reassessing” a certain amount of your Avax tokens to participate in the transaction validation process in the Avalanche block block. This guarantees that all transactions are verified and added to the block chain, helping to maintain the safety and integrity of the network. To bet your chips, you must leave them with a minimum balance set platform, usually $ 1 or more.
As a re -evaluation affects the value of Avax
Bet has several consequences for the avalanche value (Avax):
- This increase in safety can lead to a reduction in the transaction rate, as it is less likely that validators are trying to manipulate or change data.
- Increased network activity : When multiple users provide their tokens, it generates more network activity that can increase the general peace of hash in the network. The higher hash is reflected in times of faster transactions and lower levels.
- This leads to lower rates for users, making it more attractive to keep their chips instead of selling them on the market.
- Increase in stimulation : Coading Reward for holders with new Avax token, which provides users further stimulation to participate in the review process. When your tokens are falling, the General Rewards group increases, which may lead to a reduction in the value of existing avaxes.
Influence of theoretical value
If we assume that the number of stations in the avalanche network will double, which represents a 20% increase in the capacity of transaction processing (which is a commonly cited assumption on the impact of participation), theoretical effects would be:
- Lower transaction rates: reduced $ 10 million rates compared to $ 8.7 million at current rates.
- Increased safety: reducing the likelihood of high speed transactions and greater network stability.
influence of the real world
Although these theoretical values are interesting, it is necessary to consider the consequences of the real world. The actual impact of participation in the value of AVAX will depend on several market factors, for example:
- Problems with overload and scalability in the network
- Competition of other blockchain platforms with similar consensual mechanisms
- Regulatory development that affects the cryptomena market
In practice, it is likely that the impact of participation in the value of avalanche (AVAX) will be at best slightly. As a decentralized platform, Avalanche is designed to be scalable and safe, which can reduce the motivation for users to stay in their chips from higher rates or safety.
Conclusion
The reassessment has advantages and theoretical restrictions on avalanches (AVAX). Although it provides another security layer and supports network activities, the actual impact on the price of the token will depend on various market factors. When the cryptocurrency space continues to develop, Stakers may find that their shares will become more attractive in the long run due to increased safety and reduction of transaction rates.