There is a $290 million fund launched by the Avalanche Foundation to aid developers in expanding their blockchain “subnets’
The so-called Avalanche Multiverse project is sponsored with 4 million AVAX tokens (about $290 million at current pricing) and intends to expand the network’s subnets.
One of the programmes focuses on developing DeFi-specific, horizontally linked blockchains with built-in KYC features. With the help of Ava Labs, Aave Companies, and Golden Tree Asset Management, as well as Jump Crypto and Valkyrie as collaborators, it will be created.
The foundation stated in a statement that there will be at least six stages to the Avalanche Multiverse program. The Multiverse will be separated into six stages in order to accommodate the growth of new subnets at various points in the future.
The Avalanche Multiverse incentive programme is designed to encourage the creation of app-specific subnet blockchains aimed at the DeFi, GameFi, and NFT sectors.
In August of last year, a $180 million initiative called Avalanche Rush was launched with the intention of attracting DeFi developers to the blockchain.
The Multiverse programme has been announced. Early indications show that Ethereum rivals Algorand, Hedera, and Celo have all given similar incentive programmes, and that they have been successful in drawing new users.
Avalanche Foundation cited two instances of subnet initiatives that are currently underway: DeFi Kingdoms and an institutional DeFi effort that includes half a dozen major players in the cryptocurrency industry.
Subnets’ Importance for Avalanche
Subnets let developers differentiate their chains from the Avalanche mainnet by picking network gas tokens, validator sets, and fee structures.
It is possible to create more Avalanche blockchain layers by using subnets, also known as subnetworks, as validators. By staking their $AVAX tokens in Avalanche, projects may become validators.
The Avalanche Multiverse is designed to be totally customizable. Congestion increases when more users join a single network. More users joining the space necessitates the usage of subnets to disperse traffic.