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The Finance Base
Avalanche

How Avalanche Works: AVAX, L1s (Formerly Subnets), and Transaction Fees

Avalanche’s Primary Network has three distinct chains. AVAX pays its fees and supports staking, while Avalanche L1s—formerly Subnets—can set their own validators and fee rules.

By TheFinanceBase Team 4 min read
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Avalanche is a proof-of-stake platform whose Primary Network is made up of three distinct chains: the P-Chain, C-Chain, and X-Chain. AVAX is used for Primary Network fees and staking. Other Avalanche networks—now officially called Avalanche L1s, formerly Subnets—can set their own validators, rules, and fee arrangements, so not every Avalanche transaction uses AVAX or follows the Primary Network’s fee rules.

What is Avalanche’s Primary Network?

The Primary Network is Avalanche’s core network and is itself a special Avalanche L1. It consists of three chains with different jobs, rather than three names for a single ledger.

Chain Main role
P-Chain (Platform Chain) Coordinates platform functions such as validator and staking activity and the management of Avalanche L1s.
C-Chain (Contract Chain) Runs smart contracts and is the chain whose fee mechanics are most often discussed in connection with Avalanche gas.
X-Chain (Exchange Chain) Supports the creation and transfer of digital assets.

These are separate chains within the Primary Network, with different functions and transaction types. A fee or behavior described for one chain should not automatically be assumed to apply to the others.

What is AVAX used for?

AVAX is Avalanche’s native utility token. On the Primary Network, it is used to pay transaction fees and to stake in support of the network. Avalanche Builder Hub token documentation states a maximum supply of up to 720 million AVAX. That is a cap, not a statement of how many tokens are currently circulating.

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The Builder Hub staking documentation, accessed October 4, 2026, lists a minimum stake of 2,000 AVAX to validate and a minimum delegation of 25 AVAX. Staking terms can change with network upgrades, so treat those figures as the documented requirements on that date rather than permanent rules.

How does Avalanche consensus work?

Avalanche consensus is based on repeated, randomized sampling rather than a single leader proposing every decision. As the Avalanche Builder Hub puts it, “Consensus protocols in the Avalanche family operate through repeated sub-sampled voting.”

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  1. A validator queries a small, random subset of other validators about their preferred outcome.
  2. If enough of the sampled validators agree, it updates its own preference toward that outcome.
  3. It repeats the sampling process. Confidence builds when the same preference receives sufficient support over consecutive rounds.

Stake affects the weight of validators in sampling, so influence is not simply one validator, one equal vote. Snowman is the Avalanche consensus implementation used for linear chains. This process explains how the network converges on decisions, but it does not guarantee one exact confirmation time for every transaction.

What are Avalanche L1s, and what happened to Subnets?

Avalanche L1s were formerly called Subnets. The legacy word remains supported in the network and code, but official documentation recommends launching new blockchains as L1s. The terminology changed; the key architectural idea is that an L1 is a sovereign network with its own validator membership and rules.

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An L1 can validate multiple blockchains, while each blockchain is validated by one L1. L1s are independent in execution, fees, state, networking, and security requirements. They do not automatically inherit the Primary Network’s transaction-fee rules or require AVAX as gas.

How do Primary Network fees differ from L1 fees?

On the Primary Network, fees are paid in AVAX and burned. Fee mechanics differ by chain and transaction type. An L1, by contrast, can define its own gas token and configure fees to be burned or sent to an address. Its validators, execution environment, fee calculation, and security requirements depend on that L1’s configuration.

Fee question Primary Network Avalanche L1
Who sets the rules? Primary Network protocol rules; mechanics vary by chain and transaction type. The L1’s configuration and rules.
What token pays fees? AVAX. The L1 can define its own gas token; AVAX is not required by the general L1 model.
Where do fees go? Fees are burned. They can be burned or configured to go to an address.
Which validators secure it? Primary Network validator arrangements. The L1 has its own validator membership and security requirements.

Those are general architectural distinctions, not a description of every individual L1. To understand a transaction on a particular L1, check that network’s current documentation for its gas token, fee formula, fee destination, and validator rules.

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How are C-Chain gas fees calculated?

The C-Chain uses a dynamic base fee. It rises when network utilization exceeds its target and falls when utilization is below the target. A dynamic-fee transaction can also include a priority tip. As a result, a single quoted gas price is not a reliable standing rate for every C-Chain transaction.

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What changed with Helicon?

The current Avalanche fee guide describes Helicon as active on Mainnet as of October 4, 2026. It records the upgrade as active on Fuji from July 28, 2026, and scheduled for Mainnet on September 22, 2026. Under the guide’s Helicon description, the minimum base fee starts at 1 wei and is a dynamic parameter driven by stake-weighted validator preference. The 1-wei figure is a minimum base-fee setting, not a promise that an entire transaction costs 1 wei.

Helicon also changes fee handling under Continuous Execution. At execution start, a block’s baseFeePerGas is a worst-case bound. A sender must be able to cover the worst-case cost when the transaction is included, while the gas charged after execution is max(gasUsed, gasLimit / 2). This makes the gas limit relevant to the charged amount even when execution uses less gas.

How much does an Avalanche transaction cost?

There is no one fixed amount that answers this for every Avalanche transaction. The chain matters, as do the transaction type and its current fee conditions. The Primary Network uses AVAX, while a custom L1 may use another gas token and its own fee configuration. On the C-Chain, the dynamic base fee changes with utilization, and eligible transactions may include a tip.

For a transaction you are about to send, use the current estimate in your wallet or the documented gas-estimation APIs rather than relying on an old fee quote. An Avalanche Support article dated October 15, 2025 gives a 75–225 nAVAX/gwei range, but that older range should not be treated as a universal current rate in light of the newer upgrade-aware fee description.

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