Avalanche Unveils $290 Million Incentive Program to Foster Subnet Adoption
Emin Gün Sirer, the director of the Avalanche Foundation predicts that subnets could be the next big thing in the constantly developing world of digital assets.
Avalanche Subnets Will Change the Blockchain Game
Avalanche, the high-throughput, low-latency, gas-efficient smart contract platform has announced the launch of Avalanche Multiverse, an incentive program geared toward fostering the adoption of subnets.
For the uninitiated, subnets are essentially application-specific blockchain ecosystems.
Sirer dubbed the subnets the “next big thing on the blockchain.” He added that subnets facilitate functions that are only possible with “network-level control and open experimentation.”
Sirer went on to say that although smart contracts were the pioneers of innovation within the blockchain industry in the last five years, subnets will be the ones to take the ecosystem to new heights in the future.
Details of the Incentive Program
Notably, Avalanche’s latest incentive program has set aside up to four million AVAX tokens worth almost $290 million according to current market prices. The allocation will be primarily used to fund blockchain gaming, decentralized finance (DeFi) on Avalanche, non-fungible tokens (NFTs), and to ideate and experiment with novel institutional use-cases.
The Avalanche Multiverse is being led by several prominent collaborators such as DeFi Kingdoms, Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize.
The incentive program will introduce a subnet that is specific to DeFi Kingdoms and offer incentives worth more than $15 million. Frisky Fox, an executive from DeFi Kingdoms, notes that Avalanche’s subnets technology is a “perfect fit” for their project.
He said:
“The entire DeFi Kingdoms universe is written into smart contracts, pushing the envelope of what is possible with blockchain technology. We began looking very early on for technology that could help us scale and introduce new features like using our native tokens for gas fees, without sacrificing security or decentralization. Avalanche’s revolutionary subnet technology is the perfect fit.”
It is worthy of note that Ava Labs – the core developer of Avalanche – will also work with the rest of the collaborators to develop an integrated blockchain that offers Know Your Customer (KYC) functions geared toward the demands of the institutional DeFi ecosystem.
Commenting on the development, Wes Cowan, managing director of DeFi at Valkyrie Investments, said:
“Avalanche’s subnet with KYC infrastructure, will be a massive step forward for institutional adoption and we are proud to support the implementation.”
Similar sentiments were echoed by Stani Kulechov, Founder and CEO of the leading DeFi protocol, Aave.
He said:
“Avalanche Subnets enable 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 just as investors. “This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist.”
In related news, crypto.news reported on February 17 that Dexalot, an Avalanche-based order-book decentralized exchange that aims to bring the user interface of traditional centralized exchanges to decentralized on-chain applications had raised $7 million in its latest funding round from the likes of Avalaunch, Colony, Benqi, AVentures, and Avascan, among others.
