In summary
- The Avalanche Foundation raised $250 million in an AVAX locked sale, led by Galaxy Digital, Dragonfly and ParaFi Capital, to fund its Avalanche9,000 upgrade.
- Avalanche9,000 promises to reduce L1s implementation costs by 99.9%, incentivizing developers with $40 million in grants and referrals.
- The update scheduled for 2025 seeks to enhance scalability and accessibility for specific applications in the Web3 ecosystem.
The Avalanche Foundation announced a $250 million raise through a blocked sale of the AVAX token, the native token of the Avalanche Blockchain, ahead of the planned launch of its major Avalanche9,000 network upgrade.
The investment follows the testnet launch of Avalanche9,000, an update designed to make it cheaper and easier to build on Avalanche and deploy dedicated, application-specific networks called “L1s,” formerly known as Avalanche subnets.
More than 40 venture capital firms participated in the sale, which was led by Galaxy Digital, Dragonfly and ParaFi Capital.
“The upcoming Avalanche9,000 update represents a critical step towards advancing the decentralized finance ecosystem,” Dragonfly Managing Partner Haseeb Qureshi said in a statement. “We believe Avalanche is uniquely positioned to capture the growing momentum in Web3 and blockchain scalability.”
Avalanche is a layer 1 blockchain network that initially gained prominence as a competitor to Ethereum, promising cheaper and faster transactions to power decentralized applications, or dapps. Over time, it has established itself as a prominent network for such dapps, along with Solana.
The Avalanche9,000 update, which is scheduled for release in early 2025, will reduce Avalanche’s L1s deployment costs by 99.9%. As of late November, more than 500 Avalanche L1s were in development, with popular examples of the application-specific blockchains run by game developers like Off the Grid and Shrapnel.
As part of the launch, the Avalanche Foundation is incentivizing developers with $40 million in retro grants, including up to $2 million in referrals through its Retro9,000 program.
Edited by Andrew Hayward
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