The foundation of the Avalanche blockchain launched the ‘Avalanche Multiverse program’ which is a program aimed at incentivizing and stimulating new types of development on the Avalanche blockchain ecosystem.
The program is said to be funded by 4,000,000 AVAX tokens, which at the current market price, puts the total program fund at worth $314.7 million. The fund is mainly aimed to encourage the growth of subnets on the network.
Subnets are segmented pieces of a larger network. They are logical partitions of a network into multiple, smaller network segments. Subnets in this case, are blockchains linked to Avalanche, in that they share similar tools and features, however, they can be customized to suit the requirements of specific apps.
What you should know
- The goal of a subnet is to split a large network into a grouping of smaller, interconnected networks to help minimize traffic on the avalanche blockchain. This way, traffic doesn’t have to flow through unnecessary routs and ultimately increase the network’s speed.
- The subnets are also siloed in terms of competing for resources, meaning their speed and costliness won’t be affected by events such as a popular NFT drop on the Avalanche blockchain. Subnets can also use a token of their own design instead of AVAX.
- The Avalanche Multiverse is headlined by many prominent collaborators including DeFi Kingdoms, Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie and Securitize.
- Avalanche’s core developer Ava Labs will also be working with the rest of the collaborators to build an integrated blockchain with native Know Your Customer (KYC) functions created specifically for institutional DeFi.
The next big thing in crypto?
According to the director of Avalanche Foundation, Emin Gün Sirer, subnets are the next big thing on the blockchain. Gün Sirer said that subnets enable functions that are only possible with “network-level control and open experimentation.” He also mentioned that while smart contracts carried innovations within blockchain in the last five years, he believes subnets are next.
John Wu, president of Ava Labs, said in an interview with The Block that It’s “kind of like blockchain as a service.” He added that subnets, while app-specific, retain “all the power of Avalanche.”
The launch puts Avalanche in competition with rivals Cosmos and Polkadot, blockchain operators that already offer similar functionality. The Avalanche Foundation said the Multiverse program will be divided into at least six phases to support multiple cohorts of projects. Several subnets have already been created on Avalanche, including one by Shrapnel, a first-person shooter game that recently raised $10.5 million in funding.
AVAX is currently trading $78.67 as of the time of this writing.