Advertisement

Advertisement

Home avalanche

Avalanche Multiverse To Invest $290 Million Towards Supporting Its Novel Subnet Functionality

Avalanche Multiverse To Invest $290 Million Towards Supporting Its Novel Subnet Functionality

The Avalanche Foundation has announced the launch of the Avalanche Multiverse incentive program. The $290 million (4 million AVAX) incentive program focuses on accelerating the adoption of its novel subnet functionality. 

Avalanches’ Subnet functionality supports a rich ecosystem of scalable and app-specific blockchains. However, initially, the program’s primary focus will be on DeFi, NFTs, blockchain-enabled gaming, and other institutional use cases. 

Details Of The Program 

As mentioned earlier, Avalanche’s subnet functionality helps to develop application-specific blockchains on Avalanche. The subnets are integrated natively with the Avalanche ecosystem and enable custom implementations while also having unlimited availability. 

The program and investments will be divided into six separate phases to enable better support for new cohorts and projects. However, these will not be constrained to any specific time period. 

The Program’s First Investment

The first subnet receiving investment from the incentive program is the NFT gaming project DeFi Kingdoms, which will receive around $15 million through AVAX tokens, along with the game’s new CRYSTAL tokens and the existing JEWEL token. One of Avalanche’s core developers, Ava Labs, will also be partnering with Jump Crypto, Valkyrie, Securitize, GoldenTree Asset Management, Wintermute, and other organizations to help develop the subnet. 

This will also enable regulated institutions to leverage their subnets and access institutional DeFi after completing the required Know Your Customer formalities. This will significantly accelerate the institutional adoption of DeFi. 

A Perfect Fit 

Speaking about Avalanches’ subnet technology, DeFi Kingdom’s Executive Director Frisky Fox described it as a perfect fit, stating, 

“The entire DeFi Kingdoms universe is written into smart contracts, pushing the envelope of what is possible with blockchain technology. We began looking very early on for technology that could help us scale and introduce new features like using our native tokens for gas fees without sacrificing security or decentralization. Avalanche’s revolutionary subnet technology is the perfect fit.”

Aave Founder and CEO Stani Kulechov further stated, 

“Avalanche Subnets enable us to create an ideal environment for institutions to migrate on-chain and experience the power of DeFi protocols first-hand as users rather than just as investors. This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist.”

A Little Background On Subnets 

Subnets allow for the creation of powerful, secure, reliable, permissioned, or permissionless networks. These also include several features such as selecting specific validators to secure subnet activity, selecting the token used for gas fees, custom economic models, and more. Subnets also remain integrated with the Avalanche ecosystem and do not compete for network resources. 

The Avalanche Multiverse is not the same initiative as Avalanche Rush, which is a DeFi incentive program that is still ongoing. The program supports Apps and digital assets on Avalanche’s smart contract chain. 

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Advertisement

Advertisement