Introduction

What is Independent Tokenomics?

Avalanche Custom Blockchains offer multiple ways to implement independent tokenomics. This gives developers more control and can enable new business models that would not be economically feasible on single-chain systems.

The customizations you'll learn about include:

• Native Token: Every Avalanche L1 has its own native token used for paying transaction fees
• Transaction Fees: Configure how transaction fees should be calculated
• Initial Native Token Allocation: Specify how the initial token supply is distributed
• Native Token Minting Rights: Define if and who can mint more native tokens
• Staking Token: For public and permissionless validation, define your logic for how a node can become a validator

You'll get hands-on experience configuring the tokenomics of your own custom blockchain throughout this course.

Firstly, for financial institutions, having their blockchain with a custom native token can facilitate cheaper transactions compared to traditional banking systems. This flexibility can enable real-time payments, cross-border transactions, and micropayments, fostering financial inclusion and innovation.

For gaming platforms, having their blockchain with a custom native token can revolutionize in-game economies and user experiences. They can design their tokenomics to incentivize gameplay, reward loyal players, and monetize virtual assets.