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Avalanche Foundation launches $290M fund to support subnet development
The Avalanche Foundation has launched a $290 million fund to help developers increase the number of subnets on the blockchain.
Avalanche Multiverse program
The so-called Avalanche Multiverse program is designed to encourage the growth of subnets on the network. The program will be divided into at least six phases to support multiple cohorts of projects. If the program proves successful and subnet development increases, it could put Avalanche in competition with rivals Cosmos and Polkadot.A subnet, is a set of validators that allow developers to set up their own Layer 1 or Layer 2 blockchains on Avalanche. This allows users to create application-specific blockchains, as we have seen with parachains on Polkadot and, for example, Osmosis, which is built on the Cosmos SDK. However, the subnets can contain multiple blockchains, unique virtual machines, rule sets, and requirements for participation.
DeFi Kingdoms will receive incentives
DeFi Kingdoms, a game based on Harmony, has created its own Avalanche subnet as part of the Multiverse initiative, along with a new Avalanche-native token, $CRYSTAL. It is one of the first to join the initiative. Another important subnet project focuses on providing institutional investors with regulatory compliant access to DeFi.Several subnets have already been established on Avalanche. But DeFi Kingdoms is the first project to receive incentives under the Multiverse label. The money could cover the cost of setting up and validating a subnet, but can also be used as a liquidity incentive for mining, paid out to entities that stake tokens in order to validate transactions on subnets.
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