- The Avalanche Foundation will provide $40 million in retroactive funding as the new upgrade moves into the testnet ahead of its planned 2025 deployment.
Avalanche developers have released the Avalanche9,000 testnet, a blockchain update that aims to simplify and lower the cost of L1 development on its network.
According to a release from the Avalanche Foundation, Avalanche9,000 went online on Monday at approximately 1pm ET. To encourage the expansion and uptake of the network, the Foundation will award $40 million in retroactive grants to builders on Avalanche, including $2 million for referrals.
The update will be deployed on Avalanche’s mainnet, the C-Chain, sometime in 2025.
Stephen Buttolph, Chief Protocol Architect at Ava Labs, said that the goal of [this most recent update] is to lower the cost of each part of the Avalanche tech stack. The reduction of C-Chain fees and the elimination of capital requirements for L1 validators should result in lower expenses for all Avalanche users.
In Avalanche 9,000, Avalanche subnets will be rebranded as Avalanche L1s, and the network will undergo the Etna Upgrade, which includes new validator-related rules.
Built on the same technology stack, Avalanche L1s are specialized, project-specific chains that function separately from the C-Chain mainnet. Avalanche L1s are operated by the developers of games like Off the Grid and Shrapnel. While more verticals are being developed, other L1 operators include those specializing in institutional research and small company payment solutions.
Avalanche will feature a new validator management architecture for developing natively interoperable, low-cost blockchains as part of the ACP-77 upgrade. In the meantime, the ACP-125 update seeks to lower the Avalanche C-Chain’s minimum base costs from 25 nAVAX to 1 nAVAX.
Both numbers reflect a very small fraction of a cent because 1 nAVAX is equivalent to one-billionth of an AVAX token, which is currently valued at around $42. But over time, the anticipated 96% savings should prove to be significant because those expenses may mount up for developers.
According to the Avalanche Foundation, these most recent modifications should make it easier to launch L1s while also lowering deployment costs by 99.9%, streamlining customization, and improving maintenance tasks.
Applications for the Retro 9,000 financing initiatives are ranked on a public leaderboard, the Avalanche Foundation said in a statement. The retroactive grant allocations will be determined by community vote, which will incentivize developers to construct public projects and garner community support in order to get incentives.
According to the network team, Avalanche’s mainnet and testnet are currently hosting more than 500 L1s. Furthermore, builders can use Interchain Messaging (ICM) to create even more cross-L1 dapps.
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