Written by: Yangz, Techub News
On the evening of December 12, Avalanche announced the completion of $250 million financing through a token sale, led by Galaxy Digital, Dragonfly, and ParaFi Capital, with participating investors 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, among more than 40 investment firms. The funds raised will be used to promote the upgrade known as 'Avalanche9000'.
Honestly, 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 round of bull market. As early as the beginning of September, Avalanche announced the launch of the Avalanche9000 upgrade (or Etna upgrade) and regarded it as 'the largest upgrade since its launch'. Simply put, Avalanche hopes to change its original expansion form of '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. However, specifically, how will this upgrade be realized?
As one of the initial 'Ethereum killers', Avalanche started 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, and a minimum of 2000 AVAX must also be staked.
Initially, this requirement may not seem too high, but as AVAX appreciates (when writing, the AVAX price was around $52), the overall operational costs will become increasingly expensive (the minimum staking requirement can be lowered, but frequent changes may not be a consideration for Avalanche). In the long run, such a high entry barrier will affect the adoption of the Avalanche ecosystem.
Therefore, the Avalanche Foundation initiated 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 validate the main network simultaneously. They only need to sync with the P-Chain, which tracks changes in its own Avalanche L1 validator set and processes cross-L1 communication through AWM. Furthermore, 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 P-Chain to L1 itself.
On the other hand, this proposal plans to change the P-Chain's charging mechanism from a fixed fee per transaction to a dynamic fee that better aligns with user payment principles, thereby ensuring the long-term economic sustainability of Avalanche after the cancellation 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, increasing when the total number of Avalanche L1 validators exceeds the target usage rate, and vice versa.
In addition to the proposals in ACP-77, other foundational 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 in multiple subnets, allowing users to transfer tokens between subnets. Each token transferer 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 the C-Chain and the new and existing Avalanche L1s. 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 information from one Avalanche L1 to another. (Note: Currently, the technical documentation related to ICM on GitHub has not been published. Interested individuals can refer to the relevant courses from Avalanche Academy.)
From September 3 until 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: Bounty9000 with a maximum reward of $9000 and the $40 million retrospective incentive program Retro9000, aimed at rewarding developers who develop L1 and related tools on Avalanche. On November 26, the Avalanche9000 upgrade was launched on the Fuji testnet, and the latest expected launch time for the mainnet is December 16.
Avalanche stated that the Avalanche9000 upgrade will reduce the deployment cost of Avalanche L1 by 99.9% and decrease the transaction cost on the existing C-Chain by 25 times. Currently, more than 500 L1s are being developed, covering areas including tokenization of real-world assets (RWA), loyalty and rewards, gaming, payments, and institutional projects.
Avalanche9000 undoubtedly will make a significant mark on the expansion path of Avalanche. However, in the current market environment that favors chasing high-risk assets without a clear technological foundation, can such technological advancements bring Avalanche back into the sight of investors? 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 flood of Memecoins. The 'instant explosion' attribute of Memecoins has its market logic, while various technological advancements often require longer time to settle and verify.
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