Frosty the snowman was a jolly happy soul. He was made of decentralized code but the children know how he came to life one day.
Smart contracts are like wizardry on the blockchain, able to create new and interesting dApps, conjured to life by mere magic. This is exactly what the Snowman Protocol does, it makes it so smart contracts(magical programs running on the blockchain) can be created out of thin air!
Avalanche is considered deflationary in the long term because there is a fixed supply of 720 million tokens. Some of those tokens are locked up to reward stakers(people who are getting paid in Avalanche tokens to hold Avalanche, basically like earning loyalty points for not selling). The short-term staking rewards could be seen as inflationary, though, much like how Solana is also considered both.
Of course, with an ambitious project like Avalanche comes big money. 127 of the tokens were sold in presale by Avax Labs to whales and private VC firms with way too much money to know what to do with.
The team and ‘foundation’ were also given around 20%.