The Avalanche Foundation has announced a new incentives program to support the use of subnets. The organization announced that the program, dubbed “Multiverse,” will connect developers with a fund of up to $290 million, approximately 4 million AVAX, to incentivize the growth of subnets, a trait that allows AVAX to spur multiple networks that share common computing resources.
Avalanche ‘Multiverse’ to incentivize the use of subnets
The Avalanche Foundation has just announced a new incentive program that aims to put subnetting, a central feature of the Avalanche protocol, in the crosshairs of developers. The organization has agreed to put up to $290 million (AVAX 4 million) to bring apps to build their own native subnets into the Avalanche ecosystem.
Subnets are deployments that allow developers to define rules that can vary from the rule of the Primary Avalanche blockchain. These are flexible enough to be configured to only be validated by a group of nodes and to follow specific rules, like Polkadot’s Parachains or Cosmos’ Zones.
To that end, the Avalanche Foundation is focused on integrating blockchain-enabled games, NFTs, and decentralized finance use cases first. Defi Kingdoms, a blockchain-based game with its own token, will be the first to adopt this technology, bringing its operations and a new token called Crystal to its own subnet, called appchain. The project will receive incentives of up to $15 million in AVAX and CRYSTAL. The institution has yet to define the specifics of this allocation.
On the reasons to use Avalanche subnets, Frisky Fox, executive director of Defi Kingdoms stated:
We started early on looking for technology that could help us scale and introduce new features like using our native tokens for gas charges, without sacrificing security or decentralization. Avalanche’s revolutionary subnetting technology is the perfect solution.
Decentralized Finance Also a Priority for Avalanche Foundation
Ava Labs, another core company of the Avalanche ecosystem, will partner with a number of decentralized finance protocols including Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize. This collaboration aims to produce a common subnet that includes native KYC functions, that would allow these organizations to share customer data between them.
Native KYC technology will be provided by Securitize, with proponents of the idea believing this could be a crucial shift to bring institutions into the defi space due to the additional compliance measures. On this, Wes Cowan, Managing Director of defi at Valkyrie, said:
Avalanche’s subnet with KYC infrastructure, will be a massive step forward for institutional adoption and we are proud to support the implementation.
The Multiverse program will be divided into six phases to accommodate more participants in the future. The Avalanche Foundation has previously introduced other similar incentive programs, such as Avalanche Blizzard and Rush, which focused on bringing new technologies to the chain and included several challenge blue tokens respectively.
