The Avalanche Foundation announced the launch of the Avalanche Multiverse, which is a $290 million incentive program. This action is intended to accelerate the growth of the sub-network.
The essence of the Avalanche subnet
Subnetworks (also called Subnets) in Avalanche, are a purpose-built blockchain system designed to meet the needs of projects based on the parent network. They are a form of scaling and are based on creating separate instances of the same blockchain. The implementation of these solutions aims to eliminate the risk arising from overloading the core network, through any application developed on them.
Emin Gün Sirer, director of Avalanche Foundation, expressed the following regarding the development of subnets:
“Subnets will be the next growth engine in cryptocurrencies, enabling novel functionality only possible through network-level control and open experimentation on a scale we have not seen before. Smart contracts have underpinned incredible innovation in blockchain over the past five years, and no technology is better positioned to continue this tradition than Subnets.”
According to the Avalanche Foundation, the new program to accelerate the development and adoption of Subnets is expected to cost $290 million (up to $4 million AVAX). It is to be divided into at least six phases to diversify the projects supported under it. Initially, it will focus on new ecosystems. These are to include blockchain games, the DeFi space and the NFT segment. Opportunities for institutional use of the network are also to be supported. To achieve the goals, Avalanche Foundation will initially partner with DeFi Kingdoms, Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie and Securitize.
In the DeFi Kingdoms subnet, Avalanche is expected to create $15 million worth of incentives in AVAX and CRYSTAL. It is worth noting that CRYSTAL is a new token just created by DeFi Kingdoms to complement the existing JEWEL token.
Another goal of the network is also to collaborate with Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize and others to build the first horizontally integrated blockchain, designed specifically for DeFi’s institutional segment with native KYC guidance functionality.
This is a very important aspect to accelerate the adoption of DeFi, more broadly than previously known. Regulated institutions can thus gain the ability to use subnets that few have previously had access to.