The Avalanche Multiverse Will Invest Nearly $300 Million To Support Subnet Ecosystem
The Avalanche Foundation is in the news with the announcement of the beginning of its Avalanche Multiverse program that provides significant incentives. The program amounts to $290 million invested in the acceleration of the group’s breakthrough subnet function. The subnet function provides support for an ecosystem of blockchains that are app-specific and scalable.
The initial focus of the program will be on decentralized finance or DeFi for short. The program will also focus on gaming enabled by the blockchain and NFTs.
A Closer Look At The Program
The Avalanche subnet functionality makes it easier to develop blockchains specific to applications on Avalanche. Such subnets are implemented in a native manner to the ecosystem of Avalanche, setting the stage for customized implementations that provide extensive availability. The program and its financing are to be split into half a dozen distinct phases that provide support for additional projects down the line.
An Explanation Of Subnets
Subnets might sound like high-tech mumbo jumbo yet they are fairly easy to understand. Subnets set the stage for the generation of reliable, safe and effective networks that are both permissioned and permissionless.
Subnets are highlighted by features ranging from customized economic models, selecting tokens that can be used for gas fees and the selection of nuanced validators to make subnet activity that much more secure. Subnets are fully integrated within Avalanche so there is no need to pull from limited resources.
The Initial Investment
The program’s first investment is a subnet dubbed DeFi Kingdoms. This subnet is an NFT game set to receive about $15 million of funding by way of AVAX tokens. The game will also feature Crystal tokens and implement the current Jewel token. Ava Las, a primary developer with Avalanche, will also link up with Wintermute, GoldenTree Asset management, Securitize, Valkyrie and Jump Crypto to expedite the development of this unique subnet.
The alliances will also empower regulated institutions to use subnets for leverage and also obtain access to institutional DeFi solutions after complying with the specific formalities. The end result will be a catalyzation of DeFi’s adoption at the institutional level.
The Head Of DeFi Kingdom Makes A Statement
Frisky Fox, the Executive Director of DeFi Kingdom, recently made some public comments in which he discussed the merits of the subnet technology developed by Avalanche. Fox commented how the subnet technology is a “perfect fit”, noting the universe of DeFi Kingdoms is contained within smart contracts, ultimately helping to advance the potential of blockchain tech as a whole.
Fox noted how he and his team went out of their way to pinpoint technology that would help with the scaling and implementation of new features such as native tokens used in the context of gas fees without compromising security or deviating from the ethos of decentralization. He wrapped up his comments by highlighting the fact that Avalanche’s subnet technology is the optimal fit.
Stani Kulechov, the CEO and founder of Aave, also made some interesting comments, pointing out how Avalanche subnets empower his group to develop the perfect environment for institutions to pivot to on-chain and maximize the use of DeFi protocols as users as opposed to merely obtaining benefits as investors. He went on to note how this progression constitutes a meaningful advancement in which the divisions between DeFi and conventional finance gradually dissipate.