Avalanche recently announced the launch of its 3rd ecosystem development fund worth 290 million USD to promote the construction of subnets.
Avalanche announces new ecosystem development fund worth 290 million USD.
On the evening of March 8, the Avalanche Foundation, the governing organization behind the Avalanche blockchain (AVAX), said it would create a new development fund worth $290 million to boost activity on the network.
The new fund will be called Avalanche Multiverse and funded by the Avalanche Foundation in the form of 4 million AVAX tokens.
Avalanche Multiverse will initially fund projects that are building subnets (subnets) that link directly to Avalanche. This move will make Avalanche a direct competitor to blockchains that are following the same model as Polkadot (DOT) and Cosmos (ATOM).
Two names that are moving in the direction of the subnet that Avalanche took as an example are the NFT DeFi Kingdom game project (received $15 million in funding) and a DeFi project for institutional investors, which is being built with large funds including Aave Companies, Golden Tree Asset Management, Wintermute, Jump Crypto, Valkyrie, Securitize. In particular, the DeFi Kingdom subnet has many similarities with Axie Infinity’s Ronin sidechain, which is built on Ethereum.
Even so, AVAX price is reacting “quite mildly” to the above positive information.
This is the third ecosystem stimulus package announced by Avalanche, after the $180 million Avalanche Rush fund in August 2021 and $220 million Avalanche Blizzard in November 2021.
Avalanche is also the blockchain that started the incentive program trend, forcing other ecosystems to offer similar hundreds of millions of dollars in development funds.
We assessed the time of announcing Avalanche’s new ecosystem development fund as “extremely sensitive”, when the DeFi segment was in great turmoil after Andre Cronje announced his departure from the industry, making the TVL of blockchain hot in the past. Recently, Fantom fell sharply. Avalanche Multiverse Program will certainly attract some TVLs looking for new shelters as well as projects that intend to leave Fantom. Looking back at history, Avalanche’s two stimulus packages have both created the premise for this ecosystem to expand, pushing the price of AVAX and its tokens together.