The Avalanche Foundation Launches a $290 Million Incentive Plan "Avalanche Multiverse"
This article comes fromThe Block, original author: Ryan Weeks
Odaily Translator | Nian Yin Si Tang
Summary:
This article comes from
, original author: Ryan Weeks
Odaily Translator | Nian Yin Si Tang
secondary title
Summary:
- The game project DeFi Kingdoms is the first project to receive incentive funds in the Multiverse program.
- Ava Labs has also cooperated with several encryption investment institutions to create a subnet, aiming to allow institutions to obtain compliant DeFi entrances.
The Avalanche Foundation announced Tuesday an incentive program worth hundreds of millions of dollars to encourage new types of development on the Avalanche blockchain.
Called "Avalanche Multiverse," the initiative is funded by the Avalanche Foundation with 4 million AVAX tokens (worth approximately $290 million at current prices) to encourage the growth of subnets on its network.These subnetworks are blockchains linked to Avalanche, which share similar tools and functionality, but can be customized to the needs of specific applications.Subnets are also protected from resource contention, meaning their speed and cost will not be impacted by other events on the Avalanche blockchain — such as a popular NFT Drop. Subnets can also use tokens of their own design instead of AVAX.
"It's a bit like 'blockchain as a service,'" Ava Labs president John Wu said in an interview with The Block. While subnetting is application-specific, it retains "all the functionality of Avalanche," he added.The planned rollout will put Avalanche in competition with blockchain operators Cosmos and Polkadot, which already offer similar functionality.。
Prior to this, in August 2021, the Avalanche Foundation announced that it would launch
$180M Liquidity Mining Incentive Program
Avalanche Rush encourages more applications and assets to join the thriving Avalanche DeFi ecosystem. According to the Avalanche Rush plan, Avalanche will integrate Aave and Curve, two DeFi protocols with the highest total locked value. In the first phase of the plan, the Avalanche Foundation has prepared an AVAX incentive equivalent to 20 million US dollars for Aave users and an AVAX incentive equivalent to 7 million US dollars for Curve users.
Ethereum challengers Algorand, Hedera, and Celo have proposed similar incentive schemes, and early indications are that these
proven to be effective
In its latest announcement, the Avalanche Foundation highlighted two examples of subnet projects already underway: DeFi Kingdoms and an institutional DeFi initiative that includes 6 of the largest companies in the crypto space.
NFT game project DeFi Kingdoms is the first subnet to receive funding through the Avalanche Multiverse program, which has received a $15 million grant. These rewards will be distributed in AVAX and CRYSTAL, the new native token of DeFi Kingdoms. In addition to CRYSTAL, JEWEL is also the native token of DeFi Kingdoms.
In a statement, DeFi Kingdoms executive director Frisky Fox (pseudonym) said the team is always looking for technology to help the project "scale and introduce new features, without sacrificing security or decentralization, such as Pay for gas with our native token.”
Another key subnet project focuses on creating a regulatory-compliant DeFi portal for institutional investors.
Ava Labs, which helped drive the development of Avalanche, is already working with Aave, GoldenTree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize, and others to build subnets. Participants will be required to undergo a KYC check.
“In this case, a consortium can help manage members participating in this subnet to ensure compliance,” Wu said.
secondary titleHow does the incentive program work?Ava Labs director Luigi D'Onorio DeMeo said developers must stake 2,000 AVAX tokens (currently worth around $144,000) to create and validate a subnet.
