Banff's modernization was implemented today on the Avalanche blockchain. It enables subnets to let their validators stake and earn rewards in the native token of the subnet.
Avalanche Ecosystem, a project led by AVA Labs that focuses on scalability and speed of transactions, has released a new update that will allow subnet validators to stake and generate rewards with each subnet's token.
Avalanche subnets can now let validators stake and earn rewards with the subnet’s own native token, due to the implementation of the Banff upgrade today.
Each subnet within will be able to set the rules and token with which validators will be able to participate in proof-of-stake (PoS) systems, allowing non-AVAX network assets to be used for this purpose.
- The avalanche subnetworks will be able to define their own PoS parameters.
- Validators will be involved with non-ALVX tokens.
- Rewards will be capitalised in the token defined by the subnet.
- This will improve the autonomy of the Avalanche subnetworks.
The upgrade allows creators of subnets to further personalize and control their ecosystems. Subnets are application-specific block chains in the Avalanche ecosystem. Each subnet can have its own purpose, its own set of validators and its own level of security. Subnet validators must also validate the main Avalanche blockchain.
Ava Labs chief engineer Patrick O'Grady told The Block.The Block
"Elastic subnets are the biggest feature to come to Avalanche since the launch of the network in 2020. When transforming their subnet into an elastic subnet, creators open staking up to anyone that has their subnet's token and reward them directly for providing additional security,"
The key difference following Banff is that if subnet validators — for participating subnets — choose to stake the subnet's native tokens, they will be able to earn rewards in the tokens. Validators will also need to stake AVAX tokens, which will be needed for the next native cross-subnet messaging feature, said O'Grady.
It should be noted that each subnetwork is equivalent to a specific Blockchain within the Avalanche ecosystem, so they will have their own targets, validator sets, and security levels.
In addition, subnetworks who wish to activate this operating mechanism require their developer to waive their private keys. This means restricting the possibility of modifying said subnet in the future, leaving the government in charge of the validators that assume this new task through staking with a previously specified one. symbolic.
Banff enhancement is a hard fork. Validators should upgrade to the latest version or face marked as offline and see rewards decrease.
The upgrade also gives subnet creators the ability to remove validators from a subnet before their staking period ends.