Avalanche is currently undergoing its most significant upgrade since the mainnet’s launch, which has enabled the unlocking of over $40 million in retroactive rewards.
The Avalanche network is undergoing its most significant upgrade since the platform’s mainnet launch, with over $40 million in rewards due to be unlocked by its community.
Avalanche Undergoes Upgrade, Shares User Rewards
Avalanche9000 is currently operational on the Fuji testnet, as an announcement on November 25 indicates. It is anticipated that the mainnet will be launched in the next few months. The upgrade will enable interchain communication, reduce deployment costs by 99.9%, and provide developers with over $40 million in retroactive rewards.
The upgrade is predicated on the technical enhancements from the Etna Upgrade and the community proposals ACP-77 and ACP-125. One of the most significant modifications is the brand name change of Avalanche’s subnets, now called layer-1s.
According to the company, the revamp does not alter the operation of the network’s subnets, which continue to permit horizontal scalability rather than exacerbate reliance on custom blockchains.
The L1 networks will function as permissionless or permissioned networks, each offering a distinct degree of control over validator participation and rewards.
In addition, the validators of subnets, who are now exclusively using L1 validators, are no longer required to stake 2,000 tokens and synchronize with the Avalanche Primary Network. Instead, they will now be required to pay a continuous fee contingent upon the number of validators. According to the network, the denominated fee per second will result in substantial cost savings for validators.
The Etna revision also alters the network of validator sets. Currently, the responsibility for validator management is transferred from the centralized Avalanche P-Chain to the individual L1s through a Validator Manager smart contract.
Avalanche stated that this modification will provide L1 networks with increased independence and decentralization, enabling them to establish their regulations and incentives.
If subnets wish to eliminate the staking requirement for validators, they must transition their administration from a P-Chain Owner Key to a Validator Manager smart contract.
Over 500 L1s are being developed on the testnet and mainnet. These solutions encompass various topics, including institutional research, payment solutions, and entertainment.
The network intends to enhance interoperability and reduce the number of obstacles for developers through the upgrade. Avalanche’s current total value locked is $1.4 billion, which is nearly 10% of its all-time peak of $11.1 billion in November 2021, as per data from DefiLlama.
