Avalanche Foundation launches $290 Million incentive program to promote Subnet development


Avalanche
Foundation has announced the launch of its Avalanche Multiverse which is an ongoing
incentive program designed to support various projects. The program will
allocate up to 4 million AVAX tokens coins which is Avalanche’s native
cryptocurrency worth around $290 million.
Initially, the
program will focus on new ecosystems. With at least six phases this fund can
support projects including blockchain-enabled gaming, decentralized finance
(DeFi), non-fungible tokens (NFTs), and institutional use cases. To enable Web3
developers to develop subnetworks on the Avalanche blockchain and to accelerate
the overall adoption of app-specific subnets, this multiverse program has been
introduced. In a blog post, Avalanche said, it is spending $290 million funds to
help developers add to the number of subnets on its blockchain. The main aim for launching this program was to
foster smart-contract blockchain Avalanche’s “subnet” functionality, where
application-specific blockchains whether it is for Web 3 gaming or
decentralized finance (DeFi) can be increased at scale. No end date has been
specified by the foundation team as of yet.
Aave, Golden
Tree Asset Management Securitize, Wintermute, Jump Crypto, and Valkyrie including
Defi Kingdoms are the other noteworthy collaborating members of the Avalanche
Multiverse project. According to Avalanche Foundation’s director Emin Gün Sirer, the subnets are the next big thing to transform the blockchain industry. He aims for Avalanche to be a major player in the arena.
Avalanche
Multiverse is said to bring its own specific Avalanche Subnet or ‘appchain’ a DeFi
Kingdoms. It is a play-to-earn game built on the Ethereum sidechain Harmony. DeFi
Kingdoms is said to be introduced with a combined overall maximum of $15 million
of incentives for $AVAX and $CRYSTAL which is a new Avalanche-native token. $CRYSTAL
is created by Deify Kingdoms to complement its existing $JEWEL token.
“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,” said Stani Kulechov, the Founder and CEO of Aave.
Ava Labs which
is Avalanche’s core development team will also coordinate with other
collaborators to build an integrated blockchain with native Know Your Customer
(KYC) functions specifically created for institutional decentralized finance.
There are
several problems with legacy networks such as Ethereum that Avalanche addresses
as it is a speedy blockchain alternative. Avalanche has incentivized developers
for the second time. Last year, $180 million Avalanche Rush program which was
focused on DeFi projects led the $AVAX token price to surge 113%.
What are
Subnets?
Avalanche subnetworks, also known as subnetworks, allow other blockchains to establish their own Layer 1 or Layer 2 blockchains. As Avalanche is a proof-of-stake system, projects can become validators by staking $AVAX tokens.

Indrani bose
CBW - External Analyst
INDIA