The Avalanche9000 Upgrade
In October, at the annual Avalanche Summit, Avalanche9000 was unveiled; the most significant network upgrade since the Avalanche mainnet was launched. This update will revolutionize how developers create and launch layer-1 blockchains on Avalanche.
By eliminating high entry costs, enabling permissionless validation, and offering extensive customization options, Avalanche9000 makes the ecosystem more accessible and versatile than ever. Supported by the USD40m Retro9000 grant program, this upgrade is expected to spark a surge of innovation in the Avalanche ecosystem. This month, we will dive into what the Avalanche9000 upgrade is, why it was needed and what the impact will be on Avalanche.
We have previously written about Avalanche and its growing ecosystem. By way of a quick refresher, Avalanche is a high-performance, scalable blockchain platform designed to support decentralized applications (dApps) as well as custom layer-1 blockchains. Launched in 2020, Avalanche differentiates itself with its unique consensus mechanism and multi-chain architecture, offering near-instant transaction finality and low fees. The platform has become a popular choice for developers building everything from DeFi, games and enterprise solutions.
While Avalanche has become popular, there have been several limitations of the platform from an economic and technical perspective. Developers faced challenges in launching their own layer-1 blockchains on the platform, with the primary issues revolving around high entry costs, limited customization, and the complexity of validating across multiple chains. This created barriers for new projects to join the ecosystem and stifled innovation.
The result of these limitations has been a radical rethink of how layer-1s are created within Avalanche and the upgrade to Avalanche9000. As part of Avalanche9000, the Etna upgrade aims to lower costs, streamline development, and offers advanced customization on the Avalanche platform. There are three key technical features of the upgrade:
As well as the technical enhancements of Avalanche9000, the upgrade also brings improvements to the Avalanche developer toolkit. The updated SDKs and APIs offer more streamlined integration and better documentation, making it easier for developers to build and deploy their projects. Additionally, to support the launch of Avalanche9000 and encourage widespread adoption of its new capabilities, the Avalanche Foundation has introduced the Retro9000 program. This initiative offers a total of USD40m in retroactive grants to developers who build layer-1 blockchains and essential developer tools on the Avalanche9000 platform.
Following the Avalanche9000 upgrade, several highly anticipated layer-1 blockchains are now launching on the Avalanche network. We have long anticipated gaming to become a leading crypto use case and the sector is now dominating these layer-1 launches, reflecting a broader trend in the industry. Web3 gaming and play-to-earn models are gaining popularity as players increasingly seek ownership of in-game assets and the ability to monetize their gameplay. By launching a dedicated layer-1 chain, gaming projects can offer digital ownership through NFTs, integrated marketplaces, and cross-game asset interoperability. Avalanche’s infrastructure, especially after the Avalanche9000 upgrade, is well-suited for these use cases due to its scalability, low fees, and robust developer tools.
Notable upcoming layer-1 gaming chains on Avalanche include:
- GUNZ Blockchain: Developed by Gunzilla Games, the GUNZ blockchain is designed to support the Web3 features of their game "Off The Grid." It enables a player-driven economy where in-game items are owned and traded as NFTs, providing a seamless experience for both Web3 and traditional gamers. While still a very new game, within just three days of launch, Off The Grid became the most popular free-to-download game on the Epic Games Store.
- MapleStory Universe: Nexon, a leading game developer, is creating a blockchain-based ecosystem for its popular game, MapleStory, which boasts over 260 million registered players worldwide. The layer-1 chain aims to integrate digital assets into the MapleStory gaming experience.
- Shrapnel: Shrapnel is a first-person shooter game set in a dystopian future where players engage in high stakes combat to extract valuable resources. The game incorporates blockchain elements, with in game assets like weapons and body armour being NFTs that are player-owned and tradable to enhance player engagement. Shrapnel is one of the most highly anticipated Web3 games as evidenced by the fact that the price of PERC (a digital asset fund investment) briefly jumped over 4x in October on the revelation that it held a seed investment in Shrapnel at a low valuation.
- Shatterline: Shatterline is a free-to-play first-person shooter game that features a mix of player-versus-player (PvP) and player-versus-environment (PvE) modes, offering players a roster of unique operatives and an extensive arsenal of customizable weapons. Following its acquisition by Faraway, "Shatterline" is being integrated into the FCHAIN blockchain, a custom layer-1 solution built on Avalanche.
- DeFi Kingdoms: DeFi Kingdoms is a blockchain-based game that integrates DeFi protocols with role-playing game (RPG) elements. Set in a nostalgic 16-bit fantasy world, players can engage in activities such as trading tokens, providing liquidity, and summoning unique Hero NFTs. Originally launched on the Harmony blockchain, DeFi Kingdoms is expanding to Avalanche with its own layer-1 chain.
While gaming is gaining the most traction and we foresee Avalanche becoming a leading blockchain hub for gaming, there are layer-1s outside of the gaming segment worth taking note of. In the DeFi space, the Dexalot Exchange has its own layer-1 chain to bring the on-chain trading experience closer to that of centralized exchanges. In the healthcare segment, Rymedi has deployed multiple L1 chains—Rymedi Identity, Rymedi Transaction, and Rymedi Compliance—to bring the healthcare vertical to the digital realm.
On the institutional side, Avalanche has long had ties to U.S. financial institutions and its focus on institutional adoption seems to be paying off. This month, J.P. Morgan introduced Kinexys and Project EPIC which are leveraging Avalanche's blockchain infrastructure. Project EPIC focuses on enhancing on-chain enterprise privacy, identity, and composability to facilitate the growth of tokenized finance. It ensures that sensitive financial data remains confidential while maintaining the transparency and security inherent to blockchain technology. Over the years we have seen many large institutions toying with blockchain technology, but this initiative by J.P. Morgan is a step change in commitment and signals that institutions are becoming increasingly serious in their approach to adopting digital assets. Avalanche is well placed to take advantage of this.
Avalanche is an ecosystem that we have conviction in. The Avalanche9000 upgrade marks a pivotal moment for the network, unlocking new possibilities for developers across a range of industries. We are excited about the strong momentum and innovation unfolding in the gaming sector, where projects like Off the Grid and MapleStory will set new standards for Web3 experiences. Beyond gaming, we are seeing promising developments in finance, healthcare, and enterprise solutions, with projects like J.P. Morgan's Kinexys highlighting the capabilities of the Avalanche technology stack. The future of Avalanche looks brighter than ever as the network continues to attract diverse projects, drive growth, and establish itself as a versatile platform for next-generation applications.
CMCC Global holds an AVAX position in both its Digital Asset Funds, Fund 4 and Fund 3B. In addition, we hold an illiquid and discounted AVAX position through our Titan Fund. We also run a dedicated Avalanche ecosystem fund called Everest.
