Incentives for long-term primary-network validation

Avalanche Ecosystem
1

In the original subnet vision, each subnet validator was required to validate the primary network as well by staking 2000 AVAX. It was assumed that validtors of the primary network would eventually expand their operations to validate subnets as well as a source of additional revenue or perhaps as primary source of revenue as APYs for validating the primary network would decline over time.

However, with ACP-77, validators of subnets (L1s) no longer need to validate the primary network. In effect, there needs to be a sustainable way to incentivize primary network validators over the long term. What is the plan to do so?

2

The emerging direction appears to be a fee-based, multi-revenue model, where:

  • Subnets contribute value back to the Primary Network.
  • Validators are rewarded not just with inflation, but through economic activity on the network they secure.
  • Priority access, reputation, and governance rights become valuable validator perks
3

Thanks for the reply. Yes, I should have explicitly stated that eventually inflation goes away since AVAX is hard-capped. At that point, there will be no incentives for running a primary-network validator as things stand today.

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