The Avalanche Foundation has launched a $290 million fund to help developers increase the number of subnets on the blockchain.
Multiverse Avalanche 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 is successful and subnet development increases, it could put Avalanche in competition with rivals Cosmos and Polkadot.
A subnet is a collection 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, subnets can contain multiple blockchains, unique virtual machines, rule sets, and participation requirements.
DeFi Kingdoms will receive incentives
DeFi Kingdoms, a Harmony-based game, has created its own Avalanche subnet as part of the Multiverse initiative, along with a new native Avalanche token, $CRYSTAL. He is one of the first to join the initiative. Another important subnet project aims to provide 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 mining liquidity incentive, paid to entities that stake tokens in order to to validate transactions on the subnets.