Subnet & L1 Validators, What's the Difference?

The Etna Upgrade introduced L1s to the Avalanche network, providing an enhanced sovereign network design to the original Subnet model.

L1 Validators, introduced with ACP-77, represent a departure from this model, enabling the creation of sovereign L1 networks with minimal dependency on the Primary Network. Unlike Subnet validators, L1 validators do not stake AVAX but instead pay a dynamic monthly fee, initially set at approximately 1.3 AVAX. They are exempt from validating the Primary Network, reducing their resource requirements and making L1 validation more accessible. This approach fosters economic inclusivity and sovereignty, allowing developers to define custom validation logic via smart contracts and operate independent networks without staking the Primary Network.

Primary Network Validators

Primary Network validators are responsible for processing transactions, securing the network, and participating in consensus and governance decisions. They must stake a minimum of 2,000 AVAX and validate all three primary network chains: the X, P, and C-Chain. These validators earn rewards in exchange for enhancing the security of the network. Their role is crucial for the seamless operation of the broader Avalanche ecosystem.

As far as it relates to ACP-77 and the Etna Upgrade, the requirements for Primary Network validation are not changing with the Etna Upgrade.

Subnet Validators

Subnet validators are essentially Primary Network validators with additional permissions. They must:

• Stake 2,000 AVAX on the Primary Network
• Specify an "end time" for their validation period
• Sync and validate the Primary Network (X, P, and C-Chains)
• Sync and validate a specific Subnet

For context, the creation of a Subnet involves issuing a CreateSubnetTx on the P-Chain, assigning an Owner Key to manage its validator set. After this, the holder(s) of the Owner Key can add and remove validators from the Subnet's validator set using the P-Chain transactions AddSubnetValidatorTx and RemoveSubnetValidatorTx. These transactions were created pre-Etna for Subnet management and are still valid post-Etna.

L1 Validators

L1 validators are a new addition to the Avalanche ecosystem, introduced with ACP-77 and the Etna Upgrade. A Subnet can be converted by the Owner to a sovereign L1 with ConvertSubnetToL1Tx, a new P-Chain transaction introduced in this upgrade. This transaction revokes the authority to add and remove Subnet validators from the original Owner Key, and sets the validator set management to the address specified. After a successful ConvertSubnetToL1Tx, AddSubnetValidatorTx is permanently disabled, and any validator set additions must be coordinated through a RegisterL1ValidatorTx (also introduced in ACP-77) which can only add L1 validators.

L1 validators are required to:

• Pay a continuous dynamic fee, initially set at approximately 1.33 AVAX per month
• Sync and validate a specific L1
• Sync the latest P-Chain state

L1 validators do not need to:

• Stake 2,000 AVAX
• Validate or participate in consensus on the Primary Network (X, P, and C-Chains)

Unless removed by the Owner Key, any Subnet validator added to the network before ConvertSubnetToL1Tx will continue to validate the network until its "end time" is reached.