1/ A thread on why @avalancheavax Subnets are better for value accrual than mining on Ethereum....

$AVAX

2/ Ethereum miners are price agnostic on ERC20 tokens. They only care about gas fees. Which is nice, but the value of ERC20's have just flipped ETH, and miners who are securing these contracts have missed out bigly on the gains and will continue to do so.

3/ Avalanche validators secure the Primary Network, which includes the X-chain where AVAX and other smart assets reside, the C-Chain where the EVM lives, and the P-Chain where Subnets and blockchains live.

4/ AVAX validators must post 2,000 $AVAX and in return get 7-12% back per year in AVAX for securing these three main chains. Small fish can delegate and pay a fee.

5/ Similar to parachains on Polkadot, folks create custom blockchains on Avalanche without the hassle of network and consensus development. But unlike Polkadot, these blockchains don't share the security with other chains. They must contract the work out to Subnets.

6/ Subnets are opt-in sets of validators that secure one or multiple blockchains. Each blockchain requires one Subnet. A validator can participate in multiple Subnets.

7/ Keeping up yet? All blockchain Subnets are AVAX validators, but not all AVAX validators have to be in a Subnet (besides the main chains).

8/ Subnets can be private (invite-only) or public and can set their own computer/hardware requirements to participate.

9/ So how do these new blockchain projects attract AVAX validators? Probably through Initial Subnet Offerings (ISO, first saw this term from @CollinCusce). Just like ICO premine allocations for team, investors, foundation, we'll see a new slice carved out for AVAX Subnets.

10/ In addition to ISO's, each blockchain will have various reward mechanisms to incentivize validators to stick around for the long haul. AVAX validators can get AVAX rewards while simultaneously mining for 2, 15, or 100 other blockchains! As well as delegator fees.

11/ It's impossible to predict how valuable this could be, but Ethereum ERC20s and Polkadot parachains are the closest thing we have right now 12) Technically parachains aren't live yet. KSM, EDG, AKRO, PCX, etc all live on their own networks. But returns range from 6-100% APR.

12) And don't even get me started on the staking rewards for ERC20's. It's massive. Imagine if every ETH miner got a cut of this, and that's what it could be like on Avalanche.

13) Does everything need its own blockchain? Nope. This is what smart digital assets are for on Avalanche. But the development flexibility they'll provide opens up tons of interesting use cases from enterprise to even privacy blockchains (think monero on avalanche).

14/ It's easy to see how, if Avalanche attracts a large amount of developers, the returns for validating could become insanely lucrative, thus creating massive demand for the $AVAX token.

Still learning about Avalanche so if there's anything incorrect here please hmu

. @redphonecrypto check it