What is the purpose of AVAX in transactions and staking?

• A. AVAX is the native token used to pay fees, participate in staking to secure the network, and govern network operations via validators and delegators.
• B. AVAX is used only as a store of value.
• C. AVAX is used to mint new tokens on the P-Chain.
• D. AVAX is used for cross-chain only.

Answer: (A)

AVAX is the native asset of Avalanche and serves as the fuel, the stake, and the vote of the network. In transactions, AVAX is used to pay fees across the platform, covering operations on the different chains. In staking, users lock AVAX to participate in consensus: validators run nodes to secure the network, while delegators support those validators and share in the rewards. In governance, stakers influence the system’s evolution by voting on protocol upgrades and parameter changes through their validator or delegator roles. So AVAX powers payments, network security, and governance across the ecosystem.