Skip to main content

Building PUNK L1 Blockchain

Building PUNK L1 Blockchain

PUNK L1: Core System Design for PUNKPOLL’s Independent Avalanche L1

Overview


This document outlines the end-to-end architecture, network policy, validator model, required personnel, operational strategy, interoperability roadmap, and continuous-improvement process needed to build and run PUNK L1—the standalone Avalanche Subnet chain powering the PUNKPOLL platform. It adopts Subnet-EVM for EVM compatibility and runs on the Snowman consensus protocol. The native token, PUNK, serves as gas, staking collateral, and on-chain governance vote.

1. Avalanche Subnets & Primary Network

  • Avalanche Subnets (L1s): Independent networks of dynamic validator sets, each with its own membership rules, token economy, and sovereignty over one or more blockchains. This “amoeba” design lets PUNK L1 split into further L1s as needed for high-scale or specialized tokens.
  • Primary Network Chains:
    • P-Chain (Platform Chain): Manages governance metadata, validator coordination, and tracks active Subnets. All Subnet validators sync with P-Chain via Snowman.
    • X-Chain (Exchange Chain): Handles asset minting, cross-chain asset swaps, and movements between L1s.
    • C-Chain (Contract Chain): EVM-compatible chain for smart-contract deployment and execution.

2. Performance & Fee Model

  • Block Time & Throughput:
    – Target ~2 seconds per block
    – Initial throughput ~400 TPS
  • Fee Mechanism:
    – EIP-1559 style: BaseFee + PriorityFee, 100 % of fees burned → deflationary pressure on PUNK
    – P-Chain validator fee: ~1.33 AVAX/month (per ACP-77 rules), initially covered by treasury, then protocol revenue

3. Virtual Machine & Consensus

  • VM: Subnet-EVM → full support for Solidity, MetaMask, Hardhat, etc.
  • Consensus: Snowman → sub-2 s finality, minimal performance drop as node count grows

4. Native Token “PUNK”

  1. Gas: Pays all transaction and contract-deployment fees
  2. Staking: Collateral for validator participation (PoS + delegation)
  3. Governance: 1 PUNK = 1 vote for network-parameter proposals

By making PUNK the gas token, usage directly drives token demand and naturally incentivizes governance involvement.

5. Validator Model

  • Participation: PoS with optional delegation
  • Minimum Set: 5–10 validators (8 vCPU, 16 GiB RAM, 1 TiB SSD recommended)
  • Rewards & Slashing:
    – Rewards paid in newly-minted PUNK
    – Initial era: no slashing (held in escrow)
    – Later: on-chain governance may enable selective slashing policies

6. Operations & Staffing

  • Key Roles: DevOps, on-chain dev, security, tokenomics/governance, compliance (esp. for PUNK Channel Tokens), community & validator relations
  • Monitoring: 24/7 real-time dashboards & alerts
  • Upgrades: Testnet → Mainnet phased releases, with rollback plans
  • Security: Regular audits, DDoS protection, formal upgrade workflows

7. Interoperability

  • Native: Avalanche Warp Messaging (AWM) & Teleporter for cross-Subnet and C-Chain messaging
  • External Bridges: Integrate LayerZero, Axelar, or Wormhole for trust-minimized links to Ethereum and other chains

8. Governance & Evolution

  • On-chain Voting: Stake-weighted proposals to adjust any protocol parameter
  • Quarterly Reviews: Performance & economic metrics drive rule tweaks
  • Community Input: Validators and token-holders invited into a transparent discussion forum
Why Avalanche?
Rapid Subnet-EVM launch, low barrier to entry, and post-2024 ACP-77 upgrades let PUNK L1 validators run without the old 2 000 AVAX stake—just ongoing P-Chain fees—making it lean on personnel and cost. In contrast, building on Cosmos or Polkadot demands more custom tooling, people, and spend.

Punkpoll's Blockchain Strategy

Currently, Punkpoll operates multiple smart contracts on the Avalanche blockchain: voting smart contracts (NFT-based 4 ), reward smart contracts (FT), fan membership management smart contracts (SBT), and smart contracts for Punk Tokens and Channel Tokens.

Through our operational experience with Punkpoll, our team has deeply recognized that the performance and reliability of the Layer 1 (L1) blockchain are crucial factors for the platform's success. We clearly understand the necessity of an L1 blockchain that provides scalability, flexibility, and specialized features suitable for financial services.

Accordingly, we plan to build "PUNK L1 Blockchain" based on Avalanche L1s (Subnet), optimized for token issuance (X-Chain) and management (C-Chain).

Avalanche, widely used in traditional finance networks, supports AI integration and interoperability with various DeFi protocols due to the EVM compatibility of its C-Chain. Users can thus gain additional benefits such as staking and liquidity provision through decentralized financial services, maximizing token utility by connecting with external financial networks. Leveraging this innovative architecture and model, Punkpoll aims to establish a stable token economy specifically tailored to its dual-token system.

Benefits of PUNK L1 on Avalanche L1s

Native-Level Performance:

  • Avalanche's X-Chain is expected to offer rapid, stable, and efficient issuance and management of Punk Tokens and all Channel Tokens.

Flexible Token Operation:

  • Avalanche's EVM-compatible C-Chain enables token issuers to freely utilize smart contracts and design customized token rules. For example, fandom tokens can implement community reward systems, exclusive content access, and governance participation.

Scalability and Independence:

  • Punkpoll considers using Avalanche's P-Chain to establish separate governance and expansion chains for specific tokens. For instance, large-scale fandom tokens or channel tokens experiencing temporary high transaction loads could benefit from their own dedicated chains, ensuring optimal performance without impacting other tokens on PUNK L1.

Exceptional Customization:

  • Avalanche allows significant customization of Punkpoll's NFT-based voting smart contracts to meet specific platform requirements, enabling responsive handling of diverse token economy needs.

Robust Scalability:

  • Avalanche's architecture is expected to smoothly manage sudden spikes in transactions for fandom or utility tokens. Punkpoll has already observed transaction finality and immutability confirmation within 1–2 seconds.

Cost-Effective Fees:

  • PUNK L1 will establish a competitive fee structure tailored to minimize user costs during token issuance, trading, and transfers, positively impacting platform activation.

Amoeba-Style Expansion:

  • Punkpoll envisions an "amoeba-style" expansion model, easily spinning off successful tokens into independent L1 blockchains, fostering long-term platform growth and stability.

Strong Avalanche Ecosystem:

  • As part of the Avalanche ecosystem, Punkpoll expects significant synergies through integration with various DApps and services. Avalanche's financial ecosystem will particularly enhance liquidity and use cases, positively influencing user growth and platform expansion.

Specialized Channel Tokenization Strategy

Dedicated Channel Chains:

  • Avalanche's independent chain setup ensures stable and efficient management of channel token transactions requiring high throughput and security.

Ease of Regulatory Compliance:

  • Avalanche-based separate chains facilitate seamless KYC/AML and investor qualification checks through smart contracts, essential for STO and regulated fandom token transactions.

Channel-Specific Marketplace:

  • Punkpoll's dedicated Avalanche L1s enables the creation of regulatory-compliant, optimized marketplaces specifically for channel tokens.

AI-Driven Efficient Channel Management

  • Combining PUNK L1 and AI token layers significantly enhances channel and channel token management efficiency.
  • Leveraging Avalanche's rapid transaction processing with AI token layers enables real-time legal structuring agents to quickly review country-specific regulations, rapidly generating optimized smart contracts for compliance.
  • Avalanche's flexible smart contract environment, paired with AI's automated smart contract generation, simplifies complex regulatory structures, enhancing security.
  • The dedicated Avalanche compliance Subnet integrated with AI compliance-checking agents aims to minimize regulatory risks, providing a secure environment for issuers and investors.

Key Advantages of Punkpoll L1

  • The primary advantages of building Punkpoll's dedicated blockchain (PUNK L1) on Avalanche include a cost-effective fee model and independent token chain structures. These features minimize transaction costs for users and the platform, ensuring operational stability even during transaction spikes.
  • Avalanche’s exceptional scalability and flexibility empower token issuers to effortlessly implement diverse token economics via smart contracts. Integrating AI token layers further simplifies complex global regulatory compliance, tokenomics design, automated smart contract creation, and compliance verification, effectively managing technical and regulatory requirements.

* 4  voting smart contracts (NFT-based)