The Banff update went live on the Avalanche blockchain on October 19. As a result, validators can now stake and earn rewards from the subnet’s native coin.
The update gives subnet developers greater flexibility and freedom over their ecosystems.
Subnets are blockchains that are used for various purposes inside the Avalanche ecosystem.
Each subnet may have its own purpose, collection of validators, and level of security. Subnet validators are also required to validate the main Avalanche blockchain.
Elastic subnets are perhaps the biggest enhancement to Avalanche’s blockchain since the network’s debut.
When designers transform their network into an elastic subnet, they open up staking to everyone who has their subnet’s token and directly recompenses them for providing increased security.
After the update, subnet validators can now stake the subnet’s native tokens and earn rewards in the token of choice. However, validators will also need to hold AVAX – which is required for subsequential cross-subnet features.
This upgrade will not be applied to all subnets at the same time. To allow a subnet to work in this manner, the creator of the subnet must convert it into an elastic subnet – a one-time transformation that requires the creator to give up the ability to change the subnet in the future.
The Banff improvement is a hard fork. Validators must upgrade to the most recent version or risk being marked as inactive and having their incentives lowered.
The upgrade now allows subnet developers to remove validators from a subnet before their staking period ends.
Why Upgrade to Banff’s Staking Subnet?
Aside from further prizes for staking subnet tokens, the Avalanche Foundation introduced the Avalanche Multiverse incentive package in March 2022, with a total prize pool of 290 million USD (equivalent to 4 million AVAX). The goal is to hasten the acceptance and expansion of the network.
A$VAX is predicted to profit greatly as the subnet network expands since many individuals and businesses who wish to join in the subnet must stake a specific quantity of AVAX.