Updates to Avalanche (AVAX) Public Sale

To the Avalanche community: thank you for your feedback last week.

When we started the journey to bring Avalanche to the world, we outlined core principles that would define every decision that would push the project closer to reaching its potential. Principles that would ensure we are good stewards of the Avalanche community, while also rejecting the status quo of projects that promise much and deliver little at the expense of their most avid supporters.

From the start, we’ve committed to being:

• Community-driven: we’ve always been dedicated to fostering an equal, open, and productive community around Avalanche and sharing our successes together.
• Long-term: we’re in this for a new era, not just a flash in the pan fad. We’re committed to delivering on our promises and building the internet of finance.
• Egalitarian: we’ve deliberately structured the Avalanche distribution to ensure fair and open access to the widest set of value-providing users and builders on the network.

In light of our commitment to these principles, we’re making some updates to our public sale that incorporate the feedback you’ve shared in recent days while sharpening our long-term positioning for sustainable growth. View all changes in our public sale info page here. We also wanted to take the time to clarify some points of confusion that we witnessed. For all other frequently asked questions, always refer to our FAQ found here.

Sale Updates

1. The total public sale allocation is increasing, and allocations are being capped to allow for a fairer and broader distribution.

Much of the community’s concern for the original Option A was that a select few whales could enter and consume the allotment. This sale should naturally be about maximizing a fair and broad distribution. To remedy this, the following three options are now available to public sale participants:

- Option A1: This option is for $0.50/token, with 1 year vesting, and with a maximum check size of $25K USD per participant.
- Option A2: This option is for $0.50/token, with 1.5 years vesting, and with no maximum check size per participant.
- Option B: This option is for $0.85/token, fully unlocked, and with a maximum check size of $5K USD per participant.

Option A1 and B are allocated a total of 12M tokens, borrowed from the same pool. Both options have low maximum check sizes to ensure distribution. Additionally, we are assigning a dedicated pool of 5M tokens for Option A2, which has no maximum check size. This brings the total public sale allocation to 17M tokens.

On July 21st, at 10AM ET (UTC-4), all unsold tokens from Option A1 and B are sent to Option A2. On July 22nd, 24 hours later at 10AM ET (UTC-4), all unsold tokens from Option A2 will be sent to the Community and Developer Endowment.

2. We’ve greatly simplified participation restrictions for persons outside the U.S.

In the U.S., participation is clearly defined and limited to accredited investors, but outside the U.S., there were substantial questions about who could participate. We’ve simplified the descriptions to more clearly outline ineligible participants. More details on participation for non-U.S. persons, visit our dedicated FAQ section here.

Clarifications

1. All locked tokens, including those distributed in Option A1 and A2, are eligible for staking. Furthermore, all tokens minted through staking are not subject to any vesting term.

Many of you asked whether locked tokens could be staked, and if so, what terms would be placed on rewards. The full amount of tokens acquired through Option A1 and A2 are eligible for staking, and there is no vesting schedule for staking rewards. In fact, this is how we envision (and hope) the vast majority of participants in Option A1 and A2 will use their tokens.

We believe network participation shouldn’t be limited to delegated staking or expensive mining rigs. Avalanche really showcases its power when individuals participate at the highest level, and is designed to be as easy as possible with low hardware requirements.

2. The set of available payment options are ETH, BTC, USDC, USDT, as well as wire transfers.

and, finally,

3. There have been questions regarding the fee structure of Avalanche, and how this fee structure affects the burning and overall economics of the system.

We are putting together a blog post describing various scenarios under which Avalanche may undergo for the first year. These scenarios will inform how fees will affect supply. Please stay tuned for the announcement on our social channels.

These decisions have not been made lightly, requiring a careful balance of Avalanche’s immediate goal of a broad distribution with the realities of growing a network through builders.

As with our private sale, this will require leaving “easy” participation on the table that would come in from speculators looking to turn a profit, and instead favoring individuals committed to the further development and decentralization of Avalanche. That is a tradeoff we will happily make now to enable long-term, community-driven growth in the future.

For more information on the AVAX token, go to: https://info.avax.network/.

About Avalanche

Avalanche is an open-source platform for launching decentralized finance applications and enterprise blockchain deployments in one interoperable, highly scalable ecosystem. Developers who build on Avalanche can easily create powerful, reliable, and secure applications and custom blockchain networks with complex rulesets or build on existing private or public subnets.

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