Abstract
AB-NXRA-2 is a proposal submitted to the AllianceBlock DAO to initiate the development of the Data Tunnel Avalanche Subnet in alignment with the roadmap items discussed in AB-NXRA-1. We can establish ourselves at the forefront of the dataconomy by developing a custom Subnet for the Data Tunnel. If the DAO accepts this proposal, further resources will be invested to initiate the development of the Subnet.
Background information
What is an Avalanche Subnet?
A Subnet is a specialized subset of validators within the Avalanche Primary Network that collaboratively operate Virtual Machines (VM) according to predefined rules. It offers enhanced reliability, efficiency, and data sovereignty by enabling the creation of custom blockchains tailored to specific use cases. Subnets allow high-traffic applications to operate independently without overwhelming the Primary Network, fostering scalability and isolation. By providing additional dimensions of flexibility, Subnets empower developers to build unique solutions while ensuring compatibility with the larger Avalanche ecosystem.
What is an EVM (Ethereum Virtual Machine)?
The EVM, or Ethereum Virtual Machine, is crucial in Ethereum and other EVM-compatible networks. It serves as a runtime environment where smart contracts are executed. The EVM is responsible for interpreting and executing bytecode instructions, enabling decentralized applications (dApps) to run on the network. It provides a standardized platform, allowing developers to write smart contracts using Solidity and deploy them on the blockchain. The EVM's design ensures consistency and compatibility across EVM-compatible networks, enabling seamless interoperability between networks and leveraging existing tools, libraries and developers within the Ethereum ecosystem.
What is the Data Tunnel Product Team currently working on?
The Data Tunnel product team is preparing for our upcoming product launch. We will invite the community to explore and utilize the platform upon its release. We highly value and encourage all feedback as we continuously strive to enhance the product. If you know any data enthusiasts, we ask you to invite them to engage with our platform. Following the launch, we will dedicate our efforts to making continuous improvements to the product, all while staying focused on the roadmap outlined in the AB-NXRA-1 proposal. Our first feature roll-out will be the form builder.
Motivation
With AB-NXRA-2, we encourage the AllianceBlockDAO to vote on establishing a dedicated Avalanche Subnet for the Data Tunnel. This Avalanche Subnet is to be developed in parallel with the roadmap, as specified and voted on by the DAO in the AB-NXRA-1 proposal. Creating an Avalanche Subnet is a step toward our aspiration of creating a novel data ecosystem and positioning ourselves at the forefront of the decentralized data space. By kickstarting the development of our Subnet, we will be one of the pioneers that establish a network devoted to the dataconomy while also enhancing the user experience, a key aspect for onboarding new users with limited familiarity with Web3 technology.
Rationale
Developing a Subnet is crucial for positioning the Data Tunnel within the decentralized data realm. Developing a dedicated blockchain establishes the groundwork for the Data Tunnel and other data-related products to fully realize a vision of a decentralized, participatory data ecosystem. We plan to invite other protocols, such as Ocean Protocol, to deploy their smart contracts on the Data Tunnel Subnet, thereby fostering the advancement of a new dataconomy.
Moreover, developing our blockchain network allows us to implement specific rules within the EVM specifically designed for the transfer and acquisition of data. This means we can enable users to execute certain transactions or types of transactions without requiring payment of gas fees, enhancing the network's user experience.
Specifications & Implementation of a Subnet
Research Phase
We have completed the initial phase of our inventorying process to create a dedicated Subnet for the Data Tunnel. During this phase, we primarily focused on identifying the most suitable partner to base our Subnet development on. We have concluded that Avalanche is the optimal solution both for us at AllianceBlock and for the Data Tunnel as a product. Avalanche is EVM-compatible, and we have already collaborated closely with the network on various product implementations.
Furthermore, Avalanche prioritized the development of Subnet customization early in its product development cycle. This means enough documentation is available, and several protocols are already successfully operational with their dedicated Avalanche Subnets.
Changes to the EVM
To complete the initial development phase of the Data Tunnel Subnet, we need to modify the configuration of the EVM. This could be based on the one provided by Avalanche. This will reduce our initial time to market as we will only have to reinvent the EVM partially. It will also allow us to launch the Subnet in a relatively short amount of time. In the first phase of our Subnet, we will be able, for instance, to launch the following features we intend to implement:
- Bridge $NXRA tokens, ensuring they behave as the native token on the Subnet (normally, $NXRA behaves as an ERC20 token on other networks).
- Enable certain transaction types to be gasless, such as:
- Updating the metadata of a dataset;
- Appending data to a dataset and receiving a share of the revenue;
- Claiming dataset revenue.
- On the other hand, certain transactions will incur gas costs, such as:
- Deploying smart contracts;
- Transferring tokens and NFTs;
- Subscribing to a dataset;
- Publishing a dataset;
- And all other operations that are normally conducted on a decentralized network.
Nodes on the Data Tunnel Subnet ($NXRA)
To operate a Subnet node, we will require node operators to have a vested interest or "skin in the game." Validators running a Subnet node will be required to stake and lock $NXRA for a period of time.
We plan to create a separate proposal for the DAO to vote on the amount of $NXRA that a validator must stake. As compensation, the validator will earn a portion of transaction fees on the Data Tunnel Subnet. The transaction fees a validator can accrue depend on the network's usage. As the network and data ecosystem expands, an increase in transactions will occur on the Data Tunnel Subnet. This means that there will be no predictable APR.
TLDR;
- The DAO is asked to vote on the proposal to develop an Avalanche Subnet dedicated to the Data Tunnel.
- The initial development will require certain customizations to the Ethereum Virtual Machine (EVM) that will enable us to tailor the network's behavior to the requirements of the Data Tunnel ecosystem.
- Users can run validators on the Data Tunnel Subnet by staking an amount of $NXRA, which will be determined in a follow-up proposal.
Timeline
AB-NXRA-2 will be posted on the DAO forum Commonwealth and community members have at least one week (7 days) to provide comments and input via Commonwealth or Discord. After this period passes, we will evaluate the feedback.
After appropriate updates are made and incorporated within the AB-NXRA-2 proposal, it will be presented again and finalized. The proposal will then be posted for a vote on Snapshot. This will be an on-chain vote. Votes can be made for 7 days.
Click here to vote.
Click here to vote.
