Avalanche9000 testnet launch unlocks $40M rewards

Avalanche (CRYPTO:AVAX) has announced its most significant upgrade since its mainnet launch, unveiling Avalanche9000 on the Fuji testnet. 

This upgrade is set to unlock over $40 million in retroactive rewards for developers and is expected to go live on the mainnet in the coming months.  

The Avalanche9000 upgrade will reduce deployment costs by 99.9%, introduce interchain communication, and bring new opportunities for developers.  

Key changes stem from the Etna Upgrade and community proposals ACP-77 and ACP-125.  

One major update includes rebranding Avalanche subnets as layer-1s (L1s) to enhance horizontal scaling without altering the network’s core operations.  

Avalanche’s L1 networks will function as permissionless or permissioned systems, allowing varying levels of control over validator participation and rewards.  

Validators, now referred to as L1-only validators, will no longer need to stake 2,000 AVAX tokens or sync with the Avalanche Primary Network.  

Instead, they will pay a continuous fee based on the number of validators, significantly lowering costs.  

The upgrade also introduces the ValidatorManager smart contract, transferring validator management responsibilities from the centralised Avalanche P-Chain to individual L1s.  

This change provides L1 networks greater independence and decentralisation, enabling them to establish their own rules and incentives.  

Subnets aiming to eliminate staking requirements must transition to this new management system.  

Avalanche reported that over 500 L1s are currently in development across testnet and mainnet, focusing on gaming, payment solutions, and institutional research.  

The platform’s interoperability and reduced barriers for developers are expected to drive further innovation.  

As of now, Avalanche’s total value locked (TVL) stands at $1.4 billion, a significant drop from its all-time high of $11.1 billion in November 2021, according to DefiLlama.  

At the time of reporting, the Avalanche (AVAX) price was $41.73.