Avalanche Launches $290M Incentive Program to Boost Growth of Subnets

Quick take:

  • The Avalanche Foundation has launched the ‘Avalanche Multiverse’
  • This is a $290 Million incentive program meant to increase the use and adoption of its ‘subnet’ feature
  • ‘Subnets’ are a form of scaling on Avalanche through custom blockchains
  • Avalanche will kick off the program by collaborating with DeFi Kingdoms, Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie and Securitize

The Avalanche Foundation has announced the launch of the ‘Avalanche Multiverse’, which is an incentive program worth $290 million (up to 4 million AVAX), meant to accelerate the adoption and growth of the project’s ‘subnet’ functionality.

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‘Subnets’ (or Subnetworks) on Avalanche are custom-built blockchains that cater to the various needs of unique projects. With Avalanche as the base layer, subnets are a form of scaling through the creation of separate instances of the same blockchain fully dedicated to a specific application. Subnets thus eliminate the fear that an application might be too large to the point of causing congestion on Avalanche.

The Director of the Avalanche Foundation, Emin Gün Sirer, expressed optimism that subnets would be the next growth engine in crypto. He said:

Subnets will be the next growth engine in crypto, enabling novel functionality only possible with network-level control and open experimentation on a scale we haven’t yet seen,.

Smart contracts underpinned the amazing innovation in blockchains over the last five years, and no technology is better positioned to help carry on this tradition than Subnets

The Avalanche Multiverse incentive program will be divided into at least six phases to support various projects in the program.

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To start, the incentive program will focus ‘on supporting new ecosystems including, but not limited to, blockchain-enabled gaming, DeFi, NFTs and institutional use cases.’

The Avalanche Foundation will initially collaborate with DeFi Kingdoms, Aave, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie and Securitize.

With respect to the DeFi Kingdoms specific subnet, the Avalanche Foundation will provide $15 million worth of incentives in AVAX and CRYSTAL. The latter is a new token on Avalanche created by DeFi Kingdoms to complement its existing JEWEL token.

Furthermore, Ava Labs, will ‘collaborate with the Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize and others to build the first horizontally-integrated blockchain specifically engineered for Institutional DeFi with native KYC functionality’.

This will, in turn, open the doors for regulated institutions to use Subnets to access and accelerate the adoption of DeFi.

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