Avalanche Raises $250M Through Private Locked-Token Sale for Avalanche9000 Upgrade

Layer-1 blockchain Avalanche closed a $250 million private locked-token sale to support the upcoming Avalanche9000 upgrade. The funding round, finalized on December 12, was led by Galaxy Digital, Dragonfly, and ParaFi Capital, with participation from more than 40 prominent companies, including Morgan Creek Digital, Republic Capital, and SkyBridge.

What is Avalanche9000?

Avalanche9000 is being hailed as the network’s most significant upgrade to date. It aims to make Avalanche more developer-friendly, cost-efficient, and scalable, setting the stage for broader adoption across various industries.

The upgrade promises a dramatic reduction in blockchain deployment costs—down by 99.9%, according to Avalanche's announcement. Developers will benefit from reduced upfront costs to launch their blockchains, with validators transitioning from a hefty one-time payment of 2,000 AVAX to a manageable monthly subscription of 1.33 AVAX.

The upgrade, currently live in a testnet environment, is set for its mainnet debut on December 16. Key features include:

• Interchain Communication: Enabling seamless interactions between chains on the Avalanche ecosystem.
• Developer Incentives: Unlocking over $40 million in rewards for builders.
• Scalability Enhancements: Supporting over 500 Layer-1 blockchains in development for applications ranging from DeFi to gaming.

“A single chain cannot cater to all use cases, no matter how fast you make it. The only winning architecture is multi-chain,” Avalanche cofounder, Emin Gün Sirer, said. “Horizontal scaling that we can enjoy is fundamentally different from Ethereum, Solana and others.”

Decentralized Finance and Gaming Momentum

Avalanche’s Total Value Locked (TVL) has surged to $1.65 billion, its highest in nearly two years. This growth reflects its increasing appeal within the decentralized finance (DeFi) ecosystem. Projects like DeFi Kingdoms and Dexalot are contributing to its rising prominence.

In gaming, Avalanche has made notable strides. "Off The Grid," a battle royale game built on Avalanche, became the most downloaded free game on the Epic Games store in October.

Institutional adoption is also on the rise. BlackRock’s USD Institutional Digital Liquidity Fund, valued at $561 million, recently expanded to Avalanche from Ethereum. Similarly, Franklin Templeton’s OnChain US Government Money Market Fund has added Avalanche to its platform.