Avalanche Launch $290M Incentive Program to Grow Subnets

The new $290 million incentive program is aimed to stimulate the growth of scalable chains for supporting DeFi, NFTs, and blockchain gaming on Avalanche. 

According Avalanche’s blog post, The Avalanche Foundation has launched Avalanche Multiverse, an up to $290M (up to 4M AVAX) incentive program focused on accelerating the adoption and growth of its novel “subnet” functionality, which enables a rich ecosystem of scalable app-specific blockchains. Initially, the program is focused on supporting new ecosystems including, but not limited to, blockchain-enabled gaming, DeFi, NFTs and institutional use cases.

One of the projects will focus on making a horizontally integrated blockchain built for institutional DeFi, with embedded KYC functionality. Ava Labs, Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize will collaborate on its creation.

While adding KYC might seem contradictory to DeFi’s core values, Securitize CEO Carlos Domingo believes KYC implementation will remove a major roadblock to institutional DeFi adoption.

Aave CEO Stani Kulechov commented:

“This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist.”

The subnets are blockchains linked to Avalanche, in that they share similar tools and features, but that can be customized to suit the requirements of specific apps, letting users select which validators secure the chain and which token is used for gas fees, among other things.

Avalanche’s Multiverse will be divided into six phases for supporting burgeoning subnets at different times in the future.

At the time of writing, Avalanche’s native token AVAX is trading at $73.52, up 0.94% on the daily chart.