Avalanche Foundation launches $290 Million incentive program to promote Subnet development
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.
CBW - External Analyst