The Avalanche Foundation recently announced “Multiverse” – an up to $290 million (about 4 million AVAX) incentive program to help develop subnets on its network.
Medium blogs that the initiative will start by supporting subnets dedicated blockchain gaming, DeFi NFTs and institutional use-cases.
One project will be a horizontally integrated, blockchain designed for institutional DeFi. It will include embedded KYC functionality. It will be created by Ava Labs and Aave Companies, Golden Tree Asset Management (Wintermute), Jump Crypto, Valkyrie and Securitize.
This may seem contradictory, as part of DeFi’s perceived benefit comes from it being anonymous and permissionless. Carlos Domingo, CEO of Securitize, believes KYC implementation will eliminate a major obstacle to institutional DeFi adoption.
“This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist,” added Aave CEO Stani Kulechov.
Subnets allow for “scalable” and “application-specific” blockchains to be integrated with the broader Avalanche ecosystem, while not competing with each other for network resources.
These alternative chains allow users to choose which validators are required to secure the chain, and which tokens are used for gas fees.
Multiverse will be divided into six phases in order to support subnets growing at different times.
This program is different from the “Avalanche Rush” program that incentivized project development on Avalanche’s default smart contract chain.
AVAX trades at $75 currently and is the 10th most valuable crypto according to market capital.