1/ The Avalanche Foundation recently announced $50,000 in research grants and they're not funding apps or infrastructure.
They're funding the economics underneath all of it.
The timing is no coincidence. 🧵👇🏻
2/
@avax has largely solved its technical challenges.
✅ Sub-second finality.
✅ Low fees.
✅ Modular L1 architecture.
All established.
What's left to figure out is how the economics actually hold up as the ecosystem scales.
3/ The community has noticed something frustrating.
Activity is growing. More transactions, more partnerships, more movement.
But
$AVAX price hasn't consistently followed.
Usage and token value don't automatically move together.
4/ A big part of the puzzle is ACP-77.
Before: validators had to stake 2,000 AVAX to launch on Avalanche, creating consistent token demand.
After: a small subscription fee replaced that. Great for builders, but it removed a demand driver.
5/ More L1s coming online could offset that through increased fees and token burn.
But that's not guaranteed.
That's the gap this research is will try to close.
6/ The grants cover two research areas:
✅ Cryptoasset pricing: how value actually accrues in networks like Avalanche and what drives it long term
✅ Validator economics: how to keep validators properly incentivized without relying on inflation to do the heavy lifting
7/ I break down ACP-77, the AVAX demand discussion, and why Avalanche is funding this research in my full article:
https://open.substack.com/pub/cookoutclub/p/avalanches-50k-research-grants-turning?r=1gl65e&utm_campaign=post-expanded-share&utm_medium=web
