Foundation system

$AVAX: Avalanche Foundation launches $290 million program to support “new ecosystems”

On Tuesday, March 8, the Avalanche Foundation launched Avalanche Multiverse.

What is Avalanche ($AVAX)?

Below is a brief description of Avalanche from its developer documentation:

Avalanche is an open source platform for launching decentralized applications and enterprise blockchain deployments in an interoperable and highly scalable ecosystem. Avalanche is the first decentralized smart contract platform designed for global finance scale, with near-instantaneous transaction finality. Ethereum developers can quickly build on Avalanche because Solidity is ready to use.

A key difference between Avalanche and other decentralized networks is the consensus protocol. Over time, people have misunderstood that blockchains should be slow and not scalable. The Avalanche Protocol uses a new consensus approach to achieve its strong security guarantees, fast finality, and high throughput without compromising decentralization.

AVAX is the native token of Avalanche. It is a rare, capped asset that is used to pay fees, secure the platform through staking, and provide a basic unit of account between the multiple subnets created on Avalanche. 1 nAVAX is equal to 0.000000001 AVAX.

Avalanche is developed by Ava Labs, a blockchain startup founded in Brooklyn, New York in 2018 by Professor Emin Gün Sirer (CEO), who does research in computer science at Cornell University, Kevin Sekniqi (COO) and Ted Yin ( Chief Protocol Architect).

What are subnets in Avalanche?

Here’s how Jay Kurahashi-Sofue, Vice President of Marketing at Ava Labs, explains it:

A Subnet, or subnet, is a dynamic set of validators working together to reach consensus on the state of a set of blockchains. Each blockchain is validated by exactly one subnet. A subnet can arbitrarily validate multiple blockchains. A node can be a member of an arbitrary number of subnets.

A subnet manages its own membership and it can require its constituent validators to have certain properties. This is very useful and we explore its ramifications in more depth below.

There is a special subnet called the Primary network, which validates Avalanche’s embedded blockchains. All members of all subnets must also be members of the Main network. To become a member of the primary network, you must wager Avalanche tokens. The result of the previous two points is that all validators of all blockchains must also validate Avalanche’s embedded blockchains and must have staked Avalanche tokens.

Avalanche Foundation Launches $290 Million Incentive Program

Earlier today, the Avalanche Foundation announced that it had “launched Avalanche Multiverse, an incentive program of up to $290 million (up to 4 million AVAX) focused on accelerating adoption and the growth of its new “subnet” feature, which enables a rich ecosystem of scalable applications – specific blockchains. To begin with, this program is “focused on supporting new ecosystems, including, but not s ‘limited to blockchain-enabled games, DeFi, NFTs, and institutional use cases’.

Their blog post stated that Avalanche Multiverse “will bring a specific subnet or “app chain” to DeFi Kingdoms with a combined maximum of $15 million in incentives for $AVAX and $CRYSTAL, a new native token. of Avalanche created by DeFi Kingdoms to complement its existing $JEWEL token. Details regarding the awarding of rewards will be forthcoming.




Frisky Fox, Executive Director of DeFi Kingdoms, said:

The entire universe of DeFi Kingdoms is written in smart contracts, pushing the boundaries of what is possible with blockchain technology. 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.

Additionally, Ava Labs, which is a core developer of the Avalanche client, “will work with companies Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize and others to build the first horizontally integrated blockchain specifically designed for institutions DeFi with native KYC functionality,” which “will enable regulated institutions to leverage the power of subnets to access DeFi primitives at scale and accelerate institutional adoption of DeFi.”

Stani Kulechov, founder and CEO of Aave, had this to say:

Avalanche subnets allow 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 investors. This is an important step towards a future where the barriers between traditional and decentralized finance will cease to exist.

And Saurabh Sharma, Partner and Head of Venture Capital Investments at Jump Crypto, added:

DeFi will increasingly become the foundation of the global financial system. Working with Ava Labs to create space for institutions to adopt DeFi at scale aligns perfectly with our goal of helping builders build the best-in-class finance projects of the future.

Emin Gün Sirer, Director of the Avalanche Foundation, commented:

Subnets will be the next engine of crypto growth, enabling new functionality only possible with network-level control and open experimentation at a scale we have yet to see. Smart contracts have supported incredible innovation in blockchains over the past five years, and no technology is better positioned to help continue this tradition than subnets.

Warning

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading crypto-assets involves the risk of financial loss.

Image credit

Featured image by “Jacky73490” via Pixabay