Written by Yangz, Techub News
On the evening of December 12, Avalanche announced that it had completed a $250 million financing through a locked token sale. Galaxy Digital, Dragonfly and ParaFi Capital led the investment, and more than 40 investment companies including SkyBridge, SCB Limited, Hivemind, Big Brain Holdings, Hypersphere, Lvna Capital, Republic Capital, Morgan Creek Digital, FinTech Collective, CMCC Global, Superscrypt, Cadenza, Chorus One and Tané Labs participated in the investment. The funds raised will be used to promote an upgrade called "Avalanche9000".
To be honest, I had not previously learned about Avalanche9000. Compared to the strong momentum of Memecoins, the progress of many established public chains has been overlooked in this bull market. As early as the beginning of September, Avalanche announced the launch of the Avalanche9000 upgrade (or Etna upgrade), considering it the 'largest upgrade' since its launch. In simple terms, Avalanche hopes to change its original scaling form 'subnet' through Avalanche9000 and establish it as Avalanche L1. According to Avalanche, Avalanche9000 will retain the advantages of fast finality and high throughput of subnets while allowing new Avalanche L1 to customize staking, gas tokens, and governance, etc. But specifically, how will this upgrade be realized?
As one of the original 'Ethereum killers', Avalanche began its 'subnet journey' in 2022, allowing various applications to create their own application chains. However, to become a subnet validator, one must also validate the Avalanche main network (Primary Network), including the contract chain (C-Chain), platform chain (P-Chain), and transaction chain (X-Chain). This means that validators must allocate at least 8 AWS vCPUs, 16 GB RAM, and 1 TB of storage space for network validation, in addition to a minimum stake of 2000 AVAX.
Initially, this requirement may not seem too high, but with the appreciation of AVAX (when this article was written, the price of AVAX was around 52 USD), the overall operational costs will become increasingly high (the minimum staking requirement can be lowered, but frequent changes may not be Avalanche's consideration). From a long-term perspective, such a high barrier to entry will affect the adoption of the Avalanche ecosystem.
Therefore, the Avalanche Foundation initiated the proposal ACP-77 in April, aiming to completely reform the creation and management of subnets, giving subnet creators greater flexibility.
According to this proposal, Avalanche L1 validators will no longer need to simultaneously validate the main network. They only need to synchronize with the P-Chain, which will track changes in its own set of Avalanche L1 validators and handle cross-L1 communication through AWM. In addition, Avalanche L1 can decide and implement its own validation rules and staking requirements, and the P-Chain will no longer support the distribution of staking rewards for Avalanche L1. In other words, the sovereignty of Avalanche L1 has returned from the P-Chain to L1 itself.
On the other hand, the proposal plans to change the fee mechanism of the P-Chain from a fixed fee per transaction to a dynamic fee that better aligns with user payment principles, thereby ensuring Avalanche's long-term economic sustainability after the removal of the 2000 AVAX staking requirement. Specifically, this dynamic fee mechanism is related to several factors, including the total number of Avalanche L1 validators registered on the P-Chain. Fees will be adjusted based on network usage; when the total number of Avalanche L1 validators exceeds the target usage rate, fees will increase, and vice versa.
In addition to the proposals in ACP-77, other implementations of Avalanche9000 also include two major interoperability protocols: Inter-Chain Token Transfer (ICTT) and Inter-Chain Messaging (ICM).
ICTT is a set of smart contracts based on the cross-chain communication protocol Teleporter and Avalanche Warp Messaging technology, deployed across multiple subnets, allowing users to transfer tokens between subnets. Each token transfer consists of a 'home' contract and at least one (and possibly multiple) 'remote' contracts. The 'home' contract is located in the subnet where the assets to be transferred are located, while the 'remote' contracts exist in other subnets.
ICM aims to achieve seamless communication between C-Chain and the new and existing Avalanche L1. As long as a new L1 is deployed through Avalanche, it will be immediately supported and can interact with other L1s at any time. Through ICM, developers only need to call the sendCrossChainMessage on the TeleporterMessenger contract to send messages from one Avalanche L1 to another. (Note: Currently, the technical documentation related to ICM on GitHub has not been released; interested students can refer to the relevant courses of Avalanche Academy.)
From September 3 to now, only a little over 3 months have passed, but the progress of Avalanche9000 has not been slow. In the month of the official announcement, the Avalanche Foundation announced two incentive programs, namely Bounty9000 with a maximum reward of 9000 USD and the Retro9000 with 40 million USD of retrospective incentive, aimed at rewarding developers who develop L1 and related tools on Avalanche. On November 26, the Avalanche9000 upgrade went live on the Fuji testnet, with the latest expected launch time on the mainnet being December 16.
Avalanche has stated that the Avalanche9000 upgrade will reduce the deployment cost of Avalanche L1 by 99.9% and lower the transaction cost on the existing C-Chain by 25 times. Currently, over 500 L1s are under development, covering areas such as tokenization of real-world assets (RWA), loyalty and rewards, gaming, payments, and institutional projects.
Avalanche9000 will undoubtedly make a significant mark on Avalanche's path to expansion. However, given the current market sentiment that leans towards chasing high-risk assets without clear technological foundations, can such technological advancements bring Avalanche back into the investors' view? In fact, not only Avalanche, but also NEAR's layout in AI, Polkadot's 2.0 plan, and the TradFi wave on Aptos, have all been submerged under the tide of Memecoins. The 'instant explosion' property of Memecoins has its market logic, while various technological advancements often require longer time to settle and verify.
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