Avalanche L1s Give Applications Control Over Validator Rules

Avalanche’s layer-1 model lets application networks choose their own validator rules, fees and access controls, a design introduced by the Etna upgrade that separated newer L1s from legacy Subnets.

The Etna upgrade took effect Dec. 16, 2024. Before it, Subnet validators were drawn from Avalanche’s Primary Network validator set and had to validate that network while meeting a minimum stake of 2,000 Avalanche (AVAX) tokens. Networks created through the older process remain Subnets; the newer L1 model gives each network control over its own validator set.

L1 validators do not need to validate the Primary Network. They sync the P-Chain, which serves as a shared record of validator sets, and pay a continuous fee to it. The minimum rate is 512 nAVAX per second, or about 1.33 AVAX per month when the number of fee-paying L1 validators is at or below 10,000. The rate can increase above that target. This charge covers the P-Chain validator fee, not the full cost of operating a node or network.

Each L1 can define who may participate and choose its validation approach, including proof of authority, proof of stake or custom rules. It can also set access rules, execution settings, fees and token economics. A Validator Manager contract can update the network’s validator set.

Avalanche’s Primary Network is itself an L1. It includes the P-Chain, the Ethereum Virtual Machine-compatible C-Chain and the X-Chain. The newer L1 model therefore changes validator arrangements for application networks while leaving the Primary Network’s chains in place.

Interchain Messaging (ICM) lets Avalanche chains send messages to one another. Validators on the sending chain sign each message; an aggregator can combine their signatures into a BLS signature. The destination chain checks the signature against the sending chain’s validator set. The receiving chain sets the threshold for messages from another L1; the standard setting is 67% of the sender’s stake weight, and the threshold can range from 33% to 100%.

The message process ties verification to the sending chain’s validators and the receiving chain’s chosen quorum. ICM handles messages, while moving tokens between L1s requires a separate protocol built on top of it, such as Interchain Token Transfer.

A permissioned network is one possible configuration: Tassat’s move of Lynq to an Avalanche L1 for institutional settlement is one example. The architecture lets each L1 choose its operating rules while retaining the P-Chain as a shared record for tracking validator sets.