CoinYQ Dossier

Avalanche: the consensus paper that became a network of independent L1s

Avalanche grew from an anonymous Team Rocket paper into a three-chain network built by a Cornell research group. Its later upgrades changed both the consensus engine and the obligations of chain operators, reshaping the original design while retaining AVAX as the Primary Network’s staking and fee asset.

An anonymous paper arrives before the company

In May 2018, a pseudonymous group called Team Rocket circulated “Snowflake to Avalanche.” The paper proposed leaderless consensus based on repeated subsampling and metastable preference. The reviewed official history leaves the group's identities undisclosed.

Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin were pursuing related work at Cornell. Cornell's account and Kevin Sekniqi's later history say that this group carried the paper's ideas forward with Team Rocket and formed the team behind Ava Labs. That makes them the builders and company founders in the documented story, not named authors retroactively attached to the anonymous paper.

Three chains turn research into a usable network

Avalanche mainnet launched on September 21, 2020. The Primary Network divided work among the X-Chain for native assets, the P-Chain for validators and platform coordination, and the EVM-compatible C-Chain for smart contracts. The separation gave Ethereum developers a familiar execution path without forcing asset and validator records into the same chain.

AVAX connected the three jobs economically. Validators bonded AVAX for stake-weighted participation, users paid Primary Network fees in AVAX, and those fees were burned. Staking rewards were newly minted. The token therefore combined a hard documented ceiling with an inflationary path below that ceiling.

The celebrated DAG becomes a historical feature

The Snow family uses small repeated peer samples rather than asking every validator to exchange votes with every other validator. Snowman turns that confidence process into a linear order suited to blockchains. At launch, P- and C-Chains used the linear engine while X-Chain used the Avalanche DAG.

Cortina changed the public architecture in April 2023. It stopped new X-Chain vertices and used the final DAG state as the starting point for a Snowman++ chain. The move simplified state sync, exchange integration and cross-chain messaging. It also made old descriptions of a currently operating Avalanche DAG misleading.

Messaging makes separate chains useful together

Horizontal scaling creates another problem: isolated chains need to authenticate one another. Durango activated on March 6, 2024 and made Avalanche Warp Messaging available to EVM chains. A source validator set can produce an aggregate signature for a message, while relayers deliver it and receiving contracts decide what to do.

That division preserves important boundaries. A valid source-chain signature cannot prove that the receiving application is bug-free, that a relayer will deliver promptly or that two L1s have equal validator quality. Interoperability joins security domains; it does not erase their differences.

Etna removes the old price of joining a Subnet

Under the original Subnet model, a validator of an application chain also had to validate the Primary Network and stake at least 2,000 AVAX. The rule tied additional chains to Primary Network membership but made every validator carry the same capital and hardware obligation.

Etna activated on December 16, 2024. New or converted L1s could register L1-only validators governed by a validator-manager contract. Those validators pay a dynamic continuous P-Chain fee and do not need to validate X- or C-Chain or stake 2,000 AVAX. They still synchronize current P-Chain state for validator-set and messaging information. Primary Network validators kept their own staking rules.

Sovereignty moves risk to each L1

Etna did not silently migrate every existing network. An owner must convert control to a validator-manager contract and register the new validator set; an unconverted network can continue with pre-Etna validators. An L1 may use proof of stake, proof of authority or custom logic, including permissioned membership.

The lower common requirement makes application chains cheaper to operate, while weakening any shortcut that treats the Avalanche name as one shared security guarantee. Validator admission, rewards, administrator keys, gas tokens, upgrades and emergency controls can differ from one L1 to the next.

The Primary Network keeps a separate AVAX bargain

A Primary Network validator currently self-stakes at least 2,000 AVAX. Each delegation must be at least 25 AVAX, and total validator weight is capped at the lower of 3,000,000 AVAX or five times the validator's own stake. Terms run from two weeks to one year, the minimum delegation fee is 2%, and more than 80% uptime is required to earn rewards. Sampling weight follows stake, but the protocol's documented penalty is reward loss rather than confiscation of principal.

The supply schedule also needs both sides of the ledger. Official documentation says 360 million AVAX were minted at genesis and supply can rise toward 720 million through validator rewards. Primary Network fees are burned, yet the documentation says issuance normally outweighs burns while supply remains well below the cap. Burn totals do not prove a falling supply.

A 2020 Avalanche allocation explainer assigned 10% of the 720-million maximum to the Ava Labs team and 9.26% to the Foundation, alongside sale, community, partner, airdrop and testnet programs. Those launch allocations describe the original plan, not present ownership or liquidity.

Granite closes a critical flaw and records how it happened

A July 2025 audit found that stateful precompiles handled delegatecall semantics in a way that could enable caller impersonation and forged privileged actions. The project rolled Foundation validators back, issued a soft-fork containment release and reported no evidence of exploitation on Mainnet or a public L1.

Granite activated on November 19, 2025 and made the permanent fix: affected precompiles reject delegated calls and the EVM library distinguishes raw from EVM-semantic caller contexts. The episode matters because custom precompiles are part of Avalanche's flexibility, and the same customization surface can widen the consequences of an undocumented assumption.

How the project changed

  1. 2018-05
    Team Rocket publishes the consensus idea

    The pseudonymous paper introduces the Snow family and Avalanche DAG protocol.

  2. 2020-09-21
    Avalanche mainnet launches

    X-, P- and C-Chains begin operating as the Primary Network.

  3. 2023-04
    Cortina linearizes X-Chain

    The live DAG ends and X-Chain moves to Snowman++.

  4. 2024-03-06
    Durango activates

    Warp Messaging becomes available to EVM chains.

  5. 2024-12-16
    Etna activates

    L1-only validators gain separate rules and a continuous P-Chain fee model.

  6. 2025-07-29
    A critical precompile flaw is identified

    A Trail of Bits audit question triggers the delegatecall incident response.

  7. 2025-08-01
    Public containment release ships

    AvalancheGo v1.13.4 blocks the vulnerable call path.

  8. 2025-11-19
    Granite activates

    The network adopts the permanent precompile fix and new ICM and block-time machinery.

Evidence and primary sources

Last evidence review: 2026-09-05

What is Avalanche?

Avalanche is a proof-of-stake network whose public Primary Network contains three blockchains: the P-Chain records validators and network coordination, the C-Chain runs EVM smart contracts, and the X-Chain handles Avalanche Native Tokens. Since the April 2023 Cortina upgrade, all three use linear Snowman consensus; descriptions of a live DAG-based X-Chain are historical.

The platform also hosts application-specific Avalanche L1s, the current name for networks formerly called Subnets. Etna, activated on December 16, 2024, let an L1 use its own validator-management contract and validation economics. An L1-only validator pays a continuous P-Chain fee instead of staking 2,000 AVAX or validating X- and C-Chain, but it still synchronizes current P-Chain state. Existing networks can retain the older arrangement, so the name change did not place every L1 under one security model.

AVAX pays Primary Network fees and supplies stake-weighted validator influence. Current documentation describes a maximum of 720 million AVAX, with 360 million minted at genesis, additional rewards minted below the cap and Primary Network fees burned. The burn does not by itself make supply deflationary: the same documentation says issuance usually exceeds fee destruction while supply remains far below the cap.

What problem does Avalanche solve?

The original design addressed two different bottlenecks. Its consensus research sought to avoid the message growth of all-to-all voting without accepting the slow settlement of longest-chain systems. Its platform architecture separated asset transfers, validator coordination and general smart contracts so each job did not have to share one execution environment.

Repeated random sampling gave nodes a way to build confidence from small peer queries. Snowman arranged that preference process into a totally ordered chain for smart contracts. The 2020 Primary Network then split work across X-, P- and C-Chains, while Subnets let additional validator groups run more blockchains.

That answer changed when the old Subnet rule became a cost in its own right. Before Etna, every Subnet validator also had to validate the Primary Network and stake at least 2,000 AVAX there. Etna removed that shared-membership requirement for converted or new L1-only validators. It lowered the entry cost and increased local control, while moving validator admission, staking rules and security responsibility to each L1.

How does Avalanche work?

Snow protocols use repeated, stake-weighted sampling. A node asks a small sample of validators for their preference, updates its own preference when the configured threshold is met and repeats until confidence crosses the decision threshold. The guarantee is probabilistic and parameter-dependent. Snowman applies the mechanism to a linear history of blocks; the older Avalanche DAG engine survives in code and history but is no longer used by the Primary Network.

The P-Chain coordinates Primary Network validators and Avalanche L1 records. The C-Chain is an EVM implementation for Solidity contracts. The X-Chain manages Avalanche Native Tokens. Cross-chain transfers inside the Primary Network use atomic mechanisms, while Avalanche Interchain Messaging signs messages with the source chain's validator set. Durango activated the Warp messaging precompile for EVM chains on March 6, 2024. Message verification does not make the receiving application, relayer or each L1's validator policy risk-free.

Primary Network validators currently stake at least 2,000 AVAX for two weeks to one year; delegators can assign at least 25 AVAX. Poor performance can forfeit the reward, but the documented protocol returns principal rather than slashing it. These are Primary Network rules. After Etna, an L1-only validator follows the L1's own management contract and pays a dynamic continuous P-Chain fee; it need not hold the 2,000-AVAX Primary Network stake or validate X- and C-Chain, but it must sync P-Chain for coordination and interoperability.

Etna did not automatically convert every existing Subnet. Removing the old obligation requires transferring control from a P-Chain owner key to a validator-manager contract and registering the L1 validator set. The result is a network of chains with common tooling and messaging but distinct administrators, validator membership, gas tokens, upgrade paths and failure modes.

Key facts

  • The pseudonymous Team Rocket published the original Snowflake-to-Avalanche paper in May 2018; the reviewed sources do not identify Team Rocket's members.
  • Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin formed the Cornell team that developed the research into Ava Labs and the Avalanche platform; they are not credited as the anonymous paper's named authors.
  • Avalanche mainnet launched on 2020-09-21 with the X-, P- and C-Chains.
  • Cortina linearized the X-Chain in April 2023, so the Primary Network no longer runs its historical DAG consensus engine.
  • Durango activated on 2024-03-06 and brought Avalanche Warp Messaging to EVM chains.
  • Etna activated on 2024-12-16 and introduced Avalanche L1-only validators with custom management and a continuous P-Chain fee.
  • An L1-only validator does not need the 2,000-AVAX bond or X- and C-Chain validation, but it must synchronize current P-Chain state; a Primary Network validator validates all three chains.
  • A Primary Network validator currently self-stakes at least 2,000 AVAX. Its total weight, including delegations of at least 25 AVAX each, is capped at the lower of 3,000,000 AVAX or five times its own stake; the minimum delegation fee is 2%, terms run from two weeks to one year, and more than 80% uptime is required for rewards. Helicon is active on Fuji but remained unscheduled on Mainnet at this review, so its 90% uptime and 48-hour validator-term changes were not yet Mainnet rules.
  • Avalanche documents no protocol slashing of Primary Network principal; insufficient performance loses the reward instead.
  • AVAX has a documented 720-million maximum, 360 million minted at genesis, rewards minted below the cap and Primary Network fees burned.
  • Granite activated on 2025-11-19 and permanently fixed a critical stateful-precompile delegatecall flaw that the project says was found and contained before public-chain exploitation.
  • Avalanche Mainnet comprises the Primary Network and deployed Avalanche L1s, but each L1 can have a distinct validator and administration model rather than inheriting one uniform security guarantee.

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Frequently asked questions

Who created Avalanche?

An unidentified group using the name Team Rocket published the first consensus paper in 2018. Cornell researchers Emin Gün Sirer, Kevin Sekniqi and Maofan “Ted” Yin then developed the protocol and company platform through Ava Labs. The sources support both parts of that history without assigning the pseudonymous paper to the named founders.

What are the X-, P- and C-Chains?

They are the three chains of the Primary Network. The P-Chain coordinates validators and L1 records, the C-Chain executes EVM smart contracts, and the X-Chain handles Avalanche Native Tokens. All three now use a linear Snowman consensus path.

Does Avalanche still use a DAG in production?

Not on the Primary Network. Cortina linearized the X-Chain in April 2023. The DAG design remains part of Avalanche history and code compatibility, but current P-, C- and X-Chains use Snowman.

What happened to Subnets?

Avalanche renamed and redesigned the model around Avalanche L1s. Etna let new or converted L1s manage their own validators and use L1-only validators. An existing Subnet can keep the old Primary Network validator requirement until it completes the conversion.

Must every Avalanche L1 validator stake 2,000 AVAX?

No. That amount remains the minimum for a Primary Network validator. An Etna L1-only validator instead follows the L1 validator-manager rules and pays a continuous P-Chain fee. It must sync P-Chain for coordination, although it does not validate X- and C-Chain.

Can a Primary Network validator be slashed?

Current Avalanche documentation says the protocol does not confiscate the validator’s staked principal for poor or malicious performance. A Primary Network validator needs more than 80% uptime to earn rewards; failure can cost the reward, and stake remains locked for the chosen term.

Does burning every fee make AVAX deflationary?

No. Primary Network fees are burned, while staking rewards mint new AVAX below the 720-million cap. The current token documentation says AVAX will usually remain inflationary while it is far below that cap.

Does an Avalanche L1 inherit Primary Network security?

Not automatically. Each L1 can choose validator membership, staking or authority rules, gas economics and administrative controls. Interchain messaging authenticates messages from a source validator set; it does not make every L1 share one validator set or one risk profile.

Were all 360 million genesis AVAX sold to the public?

No. The 2020 allocation plan divided the maximum supply among staking rewards, the Ava Labs team, the Foundation, public and private sales, community programs, partners, an airdrop and testnet incentives. The archived plan is useful launch history, but it does not prove current balances or control.

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