Avalanche Foundation Sets Economic Research Agenda

The Avalanche Foundation has published an economic research agenda to understand how activity on its network translates into value for AVAX, the native token. The framework is designed to measure ecosystem output, capture protocol-level value, and distribute it in ways that strengthen AVAX economics and security.

According to the foundation, the central problem is that economic activity does not automatically strengthen the asset securing the blockchain. Applications, users, and builders may generate substantial output, yet without deliberate capture mechanisms, that value can pass through Avalanche without improving validator incentives, security, or long-term sustainability.

The agenda places Gross Chain Product at the center of measurement, treating ecosystem production as the source of protocol surplus and income. Three research streams will examine tokenomics and protocol revenue capture, validator economics, and distributing captured value through options such as burns and validator-directed revenue.