Avalanche launches $290 million incentive program for 'subnet' growth
The incentive program seeks to build scalable chains for supporting DeFi, NFTs, and blockchain gaming on Avalanche.
The Avalanche Foundation declared "Multiverse" an up to $290 million incentive program to help develop subnets on its network.
The initiative will begin by supporting subnets dedicated to blockchain gaming, DeFi, NFTs.
One of the projects will focus on integrated blockchain built for institutional DeFi, with KYC functionality, Ava Labs, Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize will collaborate on its creation.
This may seem contradictory, as part of DeFi's perceived benefit comes from it being anonymous and permissions. Securitie CEO Carios Somingo believes KYC implementation will remove a major roadblock to institutional DeFi adoption.
This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist,
Subnets allow for "scalable" and "application-specific" blockchain to be integrated with the broader Avalanche ecosystem, while not competing with each other for network resources.
These chains are highly customizable, letting users select which validators secure the chain and which tokens are used for gas fees, among other things.
Multiverse will be divided into six phases for supporting burgeoning subnets at different times in the future.
This program is different from the "Avalanche Rush" program that incentivized project development on Avalanche's default smart contract chain.
AVAX is now trading $75 and is the 10th largest crypto by market cap.