Avalanche's ACP-77 Proposal: Lowering Barriers and Enhancing Decentralization

Avalanche has long championed horizontal scaling through sovereign, customizable subnets, now known as Avalanche L1s. However, the current validator requirements for these L1s present high barriers to entry. The ACP-77 proposal aims to address this issue.

Key Changes Under ACP-77:

Reduced Staking Requirements

Avalanche L1 validators will no longer need to stake a minimum of 2,000 AVAX to validate the Avalanche Primary Network. Instead, they only need to sync with the P-Chain to track changes in the validator set and enable cross-L1 communication.

Lower Costs

This change significantly reduces both the hardware and staking costs for Avalanche L1 validators, encouraging the decentralization of validator sets. It also allows regulated entities to validate their permissioned L1s without needing to validate the permissionless Primary Network.

New Dynamic Fee Mechanism

ACP-77 introduces a dynamic fee system where Avalanche L1 validators will pay continuous fees to the P-Chain based on network utilization. This ensures the long-term economic sustainability of the Avalanche network.

These changes aim to lower entry barriers, promote decentralization, and support the long-term growth and sustainability of the Avalanche ecosystem.

For more details, explore the full report by The Block's Research Director, Eden Au . Gain access to this in-depth analysis with a trial subscription to The Block Pro, your gateway to expert perspectives and cutting-edge research in the blockchain and crypto sectors.