Avalanche's Etna upgrade shifts validator control to application L1s

By Nathan Brooks

Avalanche's Etna upgrade, which took effect on Dec. 16, 2024, removed the former Subnet requirement that validators validate the Primary Network and stake at least 2,000 AVAX. Newer layer-1 networks now control their own validator rules.

Avalanche's L1 model lets each L1 set validator membership, fees and access controls without inheriting the Primary Network's validation duty or minimum stake.

Avalanche keeps the two network categories distinct. Networks created through the older process remain Subnets, while networks built under the newer model control their own validator sets. That distinction matters for application teams because validator selection, access rules and network fees become configurable within each L1 rather than inherited from the Primary Network.

What does this change for L1 operators?

Before Etna, Subnet validators came from Avalanche's Primary Network validator set. They had to validate that network and meet the 2,000-AVAX minimum stake. L1 validators no longer need to validate the Primary Network. They synchronize with the P-Chain, Avalanche's shared record of validator sets, and pay a continuous fee to it.

The minimum P-Chain 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. Avalanche describes the charge as the P-Chain validator fee, not reimbursement for the full cost of running a node or operating a network.

For operators, the trade-off is direct: a recurring chain-level charge replaces the former 2,000-AVAX qualification threshold. They still need to cover node and network expenses, but the P-Chain fee is the shared cost linking their validator arrangements to Avalanche's wider infrastructure.

Each L1 can define:

• Who may participate and whether validation follows proof of authority, proof of stake or custom rules.
• Participant access rules.
• Execution settings and fees.
• Token economics.

A Validator Manager contract can update the network's validator set, giving the L1 an administrative mechanism for changing validators without drawing the entire set from the Primary Network.

A shared record beneath network-specific governance

Avalanche's Primary Network is itself an L1. It comprises the P-Chain, the Ethereum Virtual Machine-compatible C-Chain and the X-Chain. Etna therefore changes validator arrangements for application networks while leaving the Primary Network's three chains in place.

Interchain Messaging, or ICM, carries messages between Avalanche chains. Validators on the sending chain sign each message, and an aggregator can combine those signatures into a BLS signature. The destination chain checks the signature against the sending chain's validator set.

The receiving chain sets that quorum. Its standard setting requires 67% of the sender's stake weight, although the threshold can range from 33% to 100%. ICM provides the message layer; moving tokens between L1s requires a separate protocol built on top, such as Interchain Token Transfer.

A permissioned network shows how those controls can operate in practice. Tassat moved Lynq to an Avalanche L1 for institutional settlement, illustrating a configuration in which an application network sets its own operating rules while the P-Chain continues to record validator sets.

The market-structure shift is already in place, but its cost profile is not fixed. As fee-paying L1 validators approach 10,000, operators must allow for the possibility of the P-Chain rate rising above the 1.33-AVAX monthly minimum. L1s can set their own validators and fees, while each receiving chain selects its message-verification threshold.