The WordPress moment for Web3 is arriving, and Avalanche Subnets are now at the frontier. Tooling like AWM, precompiles, and HyperSDK enable Subnets to launch with greater frequency, and support from the Avalanche Foundation makes building a Subnet exciting!
New business models are emerging, forming the backbone of the Subnet Economy. As our ecosystem grows, however, three problems are becoming apparent:
1. Subnet projects are often priced out
Validators of a Subnet must also be a validator for the Avalanche Primary Network. The minimum staking amount for the Avalanche Primary Network is 2,000 AVAX for a single validator node and 10,000 AVAX for a 5-node subnet. It can be cost-prohibitive for a Subnet to start building on top of Avalanche, as they need to bear the cost of running validators for their own network in addition to sourcing the AVAX required to validate the Primary Network. Additionally, many Subnet operators want to source node operators from the community — meaning the community needs to front this cost. Projects need cheaper access to hardware in a permissionless and non-custodial way.
2. Subnets need an Ecosystem with tooling to ship faster
Currently, launching a subnet is complex and time-consuming, requiring a great deal of manual effort. But with the right tooling and support, Subnets can be launched faster and more securely. A proper Subnet Ecosystem will make it easier for developers to customize their Subnets and make them more accessible to users while allowing ecosystem developers to develop their own business models. This will lead to a wider variety of use cases in the Subnet Economy and overall better user experiences.
3. Subnets and Community lack ways of growing together
Right now, there is no easy way for the community to access the Subnet Economy or to get involved with builders. Growth is siloed. Most Subnet operators must operate with limited information and minimal community feedback. This is because the Subnet community is currently fragmented and has a lack of access to these Subnet teams — slowing down the launch velocity of projects. A direct onramp needs to be created between the community and Subnet projects, accelerating the growth of both the Community and Subnets and allowing each party to work together.
How GoGoPool solves these problems:
GoGoPool is a permissionless staking protocol built for Avalanche Subnets. At launch, GoGoPool reduces the AVAX requirement to launch a new validator node by about 50% via liquid staking.
When using GoGoPool to liquid-stake AVAX, users receive the ggAVAX token, a new staking token that represents their staked AVAX plus any rewards it has accrued in real-time. Users can sell, hold, or spend ggAVAX and can use ggAVAX in DeFi in the same they use AVAX. You use ggAVAX to grow the Subnet Ecosystem while liquid staking.
To launch a new validator node through GoGoPool, users supply their own hardware and register minipools by staking only 1000 AVAX (instead of the normal 2000) and stake 10% of that value via the GGP token. Because node operators stake AVAX and GGP, they earn rewards in both AVAX and GGP. New minipools are placed in a queue to get matched from the ggAVAX deposit pool. Once matched, minipools are launched as full AVAX validator nodes.
The GoGoPool protocol is designed to maximize safety and freedom for node operators and liquid stakers while maximizing Subnet use cases. Minipools are noncustodial — node operators retain full ownership of their validator node and may use it to validate Subnets. By keeping the protocol permissionless while maximizing the reward-to-risk ratio for DeFi users, network participants are given a direct path to getting involved with Subnet projects launching through our community and the GoGoPool DAO.
GoGoPool’s mission is to accelerate the Subnet Economy. With minipools, teams will be able to source validator nodes easier. Liquid staking simultaneously provides the community a way to grow Subnets (and soon, we think, grow WITH Subnets). The GoGoPool DAO is tasked with shepherding our ecosystem to help more Subnets ship faster through open-source tooling and services.
We believe the ggAVAX and GGP tokens will be important base primitives in Avalanche that will align the community’s incentives towards a common goal: for Subnets to create the WordPress moment for Web3.
GoGoPool is the first core addition to the Subnet ecosystem. We have many more building blocks for the Subnet Ecosystem on the horizon — all aimed at making Subnets as easy as possible to design, build, and manage. Click here for a sneak peek at our second tool!
What happens next?
Over the next few weeks, we will
- Release more blog posts explaining the GoGoPool protocol: its intended users, mechanics, tokenomics, and our vision for the future.
- Host a series of Town Halls for the community to talk directly with the GGP founders, investors, and team about a variety of topics.
- Announce mainnet and testnet launch timelines, with details about the starting DAO members.
- Open-source smart contracts and audit results.
The Introducing GoGoPool Townhall with AvaLaunch will be held this Friday 3/10 at 4pm EST in our Discord. You can set a reminder here: https://discord.gg/fnwy3P37
Meanwhile, follow along on Twitter and Discord! If you’d like to help build GoGoPool and the Subnet Ecosystem by being a node operator or through liquid staking, send me a Telegram message @ggp_steven.
We are looking forward to working with you all!
~ Steven Gates, Founder/CEO of GoGoPool