Avalanche’s Foundation Spent $290M To Promote Subnet Growth

Avalanche’s foundation spent $290 million to promote its subnet growth as it wants Web3 builders to develop these subnets using its technology so let’s read more about it in today’s blockchain news.

Avalanche’s Foundation established a $290 million fund to help the developers add subnets to the blockchain. The multiverse will also be an ongoing initiative without a specified end date with six phases to support different projects as the foundation stated. Subnets are called subnetworks as well and are validators that allow others to establish their own Layer 1 or Layer 2 blockchains on Avalanche but because it is a PoS project, projects can become validators by staking the AVaX token. Defi Kingdoms is a play-to-earn game built on ETH sidechain Harmony which created its own Avalanche subnet as a part of the multiverse initiative along with the new Avalanche native token CRYSTAL and it is among the first to benefit from the nine-figure initiative.

Avalanche’s subnets can be engineered to offer KYCfeatures and will allow traditional financial institutions to build on the blockchain. The CEO of Aave Stani Kulechov said:

“Avalanche Subnets enable us to create an ideal environment for institutions to migrate on-chain. This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist.”

The Multiverse as mentioned is fully customizable. It is also a way for Avalanche to scale as more users on the network means more congestion. The Subnets are able to redistribute traffic and the need for which has been seen on networks like Ethereum and Polygon. The Director of Avalanche Foundation Emin Gun Sirer noted:

“Subnets will be the next growth engine in crypto, enabling novel functionality only possible with network-level control and open experimentation on a scale we haven’t yet seen.”

This is not the first time that Avalanche incentivized developers and its $180 million Avalanche rush program caused the AVAX token price to surge by 113%.

As recently reported, Users can spend AVAX in addition to other 61 crypto and traditional currencies on Wirex once linked up to the debit card. Wirex integrated Avalanche and made it available to its 4.5 million user database to more than 61 million locations around the world. With this move, the users can send, receive, store and exchange AVAX tokens and add custom tokens to the Avalanche blockchain. The company plans to onboard more AVAX based tokens over the next few months.