In an intriguing move, Avalanche Foundation has pledged to reward Dexalot with up to $3 million in form of AVAX tokens. Dexalot, a limit order book decentralized exchange (DEX), works under a subnet of Avalanche, creating an experience similar to centralized exchanges but on the decentralized front.
The deal forms part of Avalanche’s Multiverse plan, an incentive-backed thrust aimed at nurturing the growth of new subnets. For those less familiar with blockchain lingo, a subnet is essentially a network with its own set of membership rules and tokenomics, paving the way for flexibility and customizability in blockchain projects.
Dexalot’s mission to mimic a centralized exchange experience through a decentralized application indeed promises an interesting take on trading. The DEX aims to give its users the possibility to place orders at defined levels. This was made possible when its subnet was launched back in February.
The funding provision casts a light on Avalanche’s commitment to incubate new ideas and move them from concept to reality. However, the generous Multiverse funds, destined to be released over a span of 12 months, are tied to the outcomes by the Dexalot incentive program. The condition-based dispersion of these funds hinges upon the new subnet reaching specified milestones which are yet to be publicly delineated.
While the concept of earning rewards to entice development is not new in the blockchain space, it brings with it a sort of controversy. On one hand, there’s the optimism of potential growth and innovation. The potential for new projects can push the boundaries of what we understand today as blockchain technology. However, there are also concerns that conditional funding like this could be seen as an attempt to manipulate the market.
For instance, while linking fund release to meeting certain milestones might appear purely merit-based, it may incentivize aggressive pursuit of targets, sometimes potentially at the expense of quality or safety. Moreover, the elusiveness surrounding the specifics of these milestones could also lead to skepticism among stakeholders.
The move, while exciting, is raising eyebrows – balancing between the optimism of an exponentially growing blockchain universe and the cynicism of manipulated, profit-driven markets. The Avalanche Foundation, while they have remained tight-lipped on the finer details of their involvement, remains a hot topic in the blockchain world. This narrative intertwines the promising future conceived and the uncertainty that shrouds it. So, one cannot help but watch with bated breath as events unfurl.