The Avalanche Foundation has confirmed it will debut a “multiverse” which is an incentive program worth 4 million AVAX ($290 million) meant to help grow subnets on its network.
The initiative will start with support for the subnets dedicated to blockchain gaming, NFTs, DeFi, and institutional use-cases.
One project will work on creating a horizontally integrated blockchain built for institutional DeFi with embedded KYC functionality. For this, several companies will get involved, such as Ava Labs, Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, and Securitize.
It is true that this may look like a contradiction as one big point of attraction when it comes to DeFi is anonymity and being permissionless. But Carlos Domingo, the CEO of Securitize, stated that implementing KYC will actually get rid of an important roadblock for institutional DeFi adoption.
Furthermore, Stani Kulechov, the CEO of Aave, stated:
“This is a significant leap toward a future where the barriers between traditional and decentralized finance cease to exist.”
Subnets permit for “scalable” and “application-specific” blockchains to be integrated into the general ecosystem of Avalanche without having to compete with one another for the resources of the network.
These alternative chains stand out also for the fact that they are highly customizable which lets users pick what validators will secure the chain and what token will be used for gas fees.
The multiverse will have six phases.