DeFi Kingdoms, a gaming project, is the first to receive incentives under the new Multiverse program. Avalanche Labs is also collaborating with a group of crypto investing businesses to develop a subnet that will allow institutions to have access to DeFi.
On Tuesday, the Avalanche Foundation unveiled hundreds of millions of dollars in incentives to encourage new projects on the platform blockchain.
The Avalanche Multiverse initiative, which is supported by four million AVAX tokens (about $290 million at current rates), intends to promote the creation of subnets on the network.
The subnets are blockchains that are related to AVAX in the sense that they share comparable tools and features but may be adjusted to meet the needs of unique apps.
They are also isolated in terms of competition for resources, which means their speed and cost will be unaffected by events on the AVAX blockchain, such as a popular NFT drop. Subnets can also utilize their own token instead of AVAX.
Avalanche now competes with Cosmos and Polkadot, two blockchain operators that already provide similar characteristics.
The announcement of the Multiverse initiative follows the introduction of a $180 million program called Avalanche Rush in August of last year, which intended to draw DeFi developers to the blockchain. Similar incentive programs have been offered by Ethereum competitors Algorand, Hedera, and Celo, and early indications indicate that they have been effective.
The Avalanche Foundation has announced two examples of ongoing subnet projects: DeFi Kingdoms and an institutional DeFi initiative with a half-dozen crypto heavyweights.
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