Avalanche launches its Multiverse to accelerate its subnet functionality adoption
Avalanche Foundation has announced that it will launch its Avalanche Multiverse, an incentive program worth $290 million (an equivalent of about 4 million AVAX coins at the current price).
The program aims at facilitating the growth and adoption of Avalanche’s subnet functionality.
The Avalanche network consists of three chains (subnets): Platform Chain (P-Chain), Exchange Chain (X-Chain), and Contract Chain (C-Chain). The C-Chain is similar to the Ethereum Virtual Machine only that in this case it is powered by Avalanche’s Snowman consensus engine.
All three subnets have specific use-cases just as their names suggest but they are validated and secured by the Primary Network.
The Primary Network is the main network and it is a special subnet, where all members of all custom subnets must also be a member by staking at least 2,000 AVAX coins.
Avalanche’s subnets were built to meet the needs of the various projects that run on Avalanche, especially now that there is a surge in the number of projects being launched on Avalanche. These subnets also play a huge role in preventing network congestion in the case of a large application.
Showing his optimism about Avalanche’s subnet functionality, Avalanche Foundation Director, Emin Gün Sirer, had this to say:
‘’Subnets will be the next growth engine in crypto, enabling novel functionality only possible with network-level control and open experimentation on a scale we haven’t yet seen, Smart contracts underpinned the amazing innovation in blockchains over the last five years, and no technology is better positioned to help carry on this tradition than Subnets.’’
Avalanche Multiverse incentive program
To support other projects in the program, the Avalanche Multiverse incentive program will have to be rolled out in six phases. It shall start by supporting new ecosystems including institutional use cases, NFTs, DeFi, and blockchain-enabled gaming.
The Avalanche Foundation will team up with DeFi Kingdoms, Golden Tree Asset Management, Jump Crypto, Securitize, Wintermute, Aave, and Valkyrie, to give away $15 million of the incentive in AVAX and CRYSTAL (a new token created by the DeFi Kingdoms on Avalanche to complement its existing JEWEL token).
Additionally, Ava Labs will team up with Aave, Valkyrie, Golden Tree Asset Management, Jump Crypto, securitize, Wintermute, and others to build the first horizontally integrated blockchain for institutional DeFi solutions with a native Know-Your-Customer (KYC) functionality to help prevent money laundering. This will also make it easier for regulated institutions to use Avalanche’s sidechains and also adopt DeFi.