Developers who find the capabilities of the Avalanche C-Chain insufficient for their project needs may consider creating their own Avalanche L1 blockchain. Establishing an Avalanche L1 enables greater flexibility in governance, transaction models, and system control. This guide outlines the full process of taking an Avalanche L1 from initial concept to production deployment.

What is Avalanche?

Avalanche is one of the fastest, most reliable smart contracts platform in the world. Its revolutionary consensus protocol and novel L1s enable web3 developers to easily launch highly-scalable solutions. Deploy on the EVM, or use your own custom VM. Build anything you want, any way you want, on the eco-friendly blockchain designed for web3 devs.

Understanding Application Requirements

The first step in building an Avalanche L1 is to carefully assess the application's specific requirements. Developers need to consider whether the C-Chain offers the necessary features or if a standalone network is needed. Situations where an Avalanche L1 is more appropriate include the need for custom gas tokens, strict access control policies, unique transaction fee models, or fully sovereign governance structures. Identifying these needs early helps ensure that technical efforts align with the broader objectives of the project.

Deciding When to Build an Avalanche L1

Choosing to develop an Avalanche L1 is recommended when projects require functionality that the Avalanche C-Chain cannot support directly. If a project demands a gas token that differs from AVAX, a controlled access environment for regulatory compliance, a flexible transaction fee mechanism, or governance that is independent of the broader Avalanche network, then building an Avalanche L1 can provide the necessary infrastructure. This decision is central to ensuring that the blockchain architecture meets both current and future needs.

Selecting the Type of Avalanche L1

After confirming the need for a dedicated L1, the next step is selecting the appropriate virtual machine. An EVM-based Avalanche L1 offers compatibility with Solidity smart contracts and standard Ethereum APIs. Ava Labs' Subnet-EVM is the most established choice in this category, providing mature developer tools and reliable updates. For projects seeking to explore new blockchain concepts, experimental virtual machines such as TimestampVM Go or TimestampVMRust are available, although they are not intended for production use. Developers who require maximum flexibility may opt to create a custom Avalanche L1, either by forking existing virtual machines, integrating virtual machines from other blockchain ecosystems, or building entirely new solutions from the ground up.

How to Build and Deploy an Avalanche L1

Planning Tokenomics for the Avalanche L1

Tokenomics is a critical element of launching an Avalanche L1. Developers must determine which token will serve as the gas token, whether by adopting AVAX, adapting an existing C-Chain token, or creating a new one entirely. It is important to establish a clear allocation plan for validator rewards, set an emission schedule for new tokens, and decide if transaction fees will be burned or redistributed. These decisions shape the incentives within the network and influence the blockchain’s long-term economic health.

Customizing the Avalanche L1

Once a virtual machine has been selected, developers often need to apply additional customizations to fit the project's specific requirements. Customizations can include configuring token allocations in the genesis block, setting gas fee parameters, or implementing additional functionalities through precompiled contracts. These adjustments typically require thorough testing to ensure they perform as intended and meet the desired specifications. Proper customization ensures that the Avalanche L1 operates efficiently and supports the intended use cases.

Learning to Use Avalanche-CLI

Avalanche-CLI is an essential tool for developers building and managing Avalanche L1 blockchains. It supports the full project lifecycle, from local prototyping to deployment on public networks. Becoming proficient with Avalanche-CLI helps developers streamline processes such as node management, blockchain configuration, and deployment tasks. Learning this tool is a key step in effectively moving an Avalanche L1 project from early development to production readiness.

Deploying the Avalanche L1 Locally

The initial deployment phase typically occurs on a local machine or a private cloud server. This environment allows developers to implement and test all customizations without the limitations or risks associated with public networks. Local deployments enable rapid iteration cycles, making it easier to identify and resolve issues before moving to larger environments. It also provides an opportunity to develop and test full-stack decentralized applications alongside the blockchain itself.

Transitioning to Fuji Testnet

After successful local deployment, the next step is moving the Avalanche L1 to the Fuji Testnet. This public test environment provides a platform for broader validator coordination, transaction testing, and network health monitoring. Developers can simulate real-world operations, practice with hardware wallet transactions, and observe how the network performs under different conditions. It is important to note that update cycles on Fuji Testnet are slower than local deployments, often taking several hours or even days.

Launching on Mainnet

The final stage of deployment is launching the Avalanche L1 on Mainnet. At this point, the blockchain becomes available to real users and the priority shifts to maintaining network stability and security. While some adjustments are still possible after Mainnet launch, they tend to be more complex and time-consuming. Proper preparation during earlier stages can help minimize the need for significant post-launch changes, allowing the project team to focus on growth and ongoing improvements.

Exploring Custom Virtual Machine Development

Developers who have gained experience with Subnet-EVM may consider creating custom virtual machines for more advanced applications. This process could involve porting virtual machines from other blockchain networks, such as Bitcoin or Solana, or building entirely new virtual machines optimized for specific functionalities. Developing a custom virtual machine enables projects to fine-tune performance, introduce new features, or meet specialized use case requirements that are not possible with standard EVM environments. Custom virtual machines represent an opportunity to push the capabilities of the Avalanche ecosystem further, providing solutions tailored precisely to project goals.

How to Build and Deploy an Avalanche L1

Reasons to Build an Avalanche L1

Several factors can make building an Avalanche L1 an attractive choice for developers. One major reason is the ability to control the native gas token, including its creation, distribution, and fee handling. Avalanche L1s also enable higher transaction throughput compared to the C-Chain, as they are free from the shared bandwidth constraints and transaction congestion of multi-tenant networks. Applications requiring strict access controls, such as regulatory-compliant financial products, can implement these measures directly within the blockchain through transparent and auditable allow-lists.

Another important advantage is the ability to customize the EVM environment. Unlike the C-Chain, which has fixed execution parameters, an Avalanche L1 allows for the addition of custom precompiles and modifications to runtime settings, enabling applications to operate according to their specific requirements. With the introduction of the Etna upgrade, Avalanche L1s also support custom validator management through smart contracts, allowing developers to define staking and validator rules programmatically.

Finally, Avalanche L1s offer the benefit of sovereignty. These blockchains operate independently from the Avalanche Primary Network, providing full control over consensus mechanisms, transaction processing, and network upgrades. This level of autonomy is critical for projects that require complete independence to scale and evolve according to their own timelines and priorities.

How to Build and Deploy an Avalanche L1

Simplifying L1 Deployment with AvaCloud

For teams looking to launch faster, AvaCloud offers a fully managed solution that streamlines the entire Avalanche L1 journey - from custom tooling to production ready deployments. With a no-code portal and automated validator orchestration, developers can configure network settings, customize tokenomics, and launch  L1s without building infrastructure from scratch. AvaCloud handles infrastructure monitoring, upgrades, and security, allowing teams to stay focused on application and ecosystem growth.

Key features include:

• Customizable gas token (AVAX or your own token). 
• Validator management Flexible transaction fees 24/7 monitoring and seamless upgrades. 
• Leading web3 projects like MapleStory Universe, Animalia, and Koroshi have already used AvaCloud to launch scalable, reliable L1s - enabling them to innovate faster without backend complexity. 
• For developers seeking the power of a sovereign L1 without the operational burden, AvaCloud offers the fastest path to success.

Animalia L1 Chain Goes Live on Avalanche

Conclusion

Building an Avalanche L1 offers flexibility, performance, and sovereignty for projects whose needs exceed what the C-Chain can provide. For applications with modest requirements and no immediate need for customization, beginning with a C-Chain deployment remains a practical strategy. This allows teams to focus on developing the core product, validate market fit, and delay the investment of building an L1 until it becomes necessary.

Once the limitations of the C-Chain start to impact growth or functionality, transitioning to an Avalanche L1 becomes a natural next step. Teams seeking additional guidance on architectural decisions or deployment strategies are encouraged to engage with the Avalanche community through Discord and other official channels to explore their options further.

Source: Avalanche