The Avalanche Foundation is the group behind Ava Labs that is responsible for Avalanche blockchain release and management. This week, the Foundation released $290 million in funds for the development and expansion of subnets on the Avalanche blockchain. Subnets are blockchain connected to the Avalanche network that employs the same tools.
However, these subnets have partial autonomy on matters like speed, traffic management, and other customizable options. It means that while using the same underlying technology, the subnets can operate independently like a constituency of the main blockchain. Similar parallel blockchain development solutions are also offered by Cosmos and Polkadot.
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Launch of Independent Development Projects on Avalanche Network
One of the biggest new subnets for Avalanche Token is an NFT gaming platform hailing from the Multiverse program. The DeFi Kingdom has managed to bag $15 million in funds from Avalanche Foundation. The funding amount is issued in the form of AVAX tokens.
Frisky Fox is the pseudonymous executive director behind the project who claimed that users would also have the option to use the native tokens of the DeFi Kingdom for settling transaction fees. In this manner, the players will not need to connect the subnet with their local banking or digital wallet application, which will increase the security and decentralization quotient.
Luigi D’Onorio DeMeo recently explained the incentive generation process for the Ava Labs subnet applications. He claimed that the projects that want to register need to submit around 2,000 AVAX tokens, which are $144,000 in USD. He also claimed that if a project fulfills the technical aspects, the Multiverse initiative can fund the project.
He claimed that there is another method that subnet applicants can use by issuing staking rewards for the users. These rewards will be paid to the stake token owners and miners who are helping the subnet to validate the transactions. The Multiverse initiative is currently divided into 6 stages that will work on integrating different scales and genres of subnet applications for the network.