Suzaku: Progressively Decentralizing Avalanche L1s

Key Insights

• Suzaku enables new Avalanche L1s to get connected to node operators and bootstrap economic security from blue chip tokens through a dual-staking model. This allows established tokens to be staked when bootstrapping new validator sets.
• As of July 2025, Suzaku has attracted $7.0M in TVL. This is entirely via its restaking module, with the core protocol coming in Q4 2025.
• Suzaku’s TGE is planned for August 2025, with a total supply of 100 million SUZ tokens. SUZ will serve as both a governance and utility token, facilitating revenue share and providing exposure to the Avalanche ecosystem.
• Avalanche L1s offer a proven stack for Suzaku’s tech. Multiple high-profile teams have deployed L1s, as seen by MapleStory and its $100 million investment in its L1.

Primer

Suzaku is a middleware protocol built on Avalanche, focused on helping new Layer-1 (L1) chains launch securely and progressively decentralize. It serves as a decentralization hub for the Avalanche ecosystem, connecting emerging L1s with existing stakers and node operators. Through Suzaku, chains can bootstrap their security with a dual-staking model where, instead of relying solely on a brand-new token for security, a network can also be secured by established assets such as AVAX, stablecoins, etc. This design reduces early-stage security risks and provides a smoother path towards decentralization.

Suzaku provides a modular infrastructure stack tailored for Avalanche L1s. It includes reference network architectures, a development stack, and security modules that chains can integrate and customize. A core component is the BalancerValidatorManager, which allows a chain’s validator set to flexibly progress from a Proof-of-Authority setup to more decentralized models. Suzaku also offers liquid staking to enhance capital efficiency for both validators and delegators participating in L1 security.

Suzaku officially introduced its restaking application in October 2024. The restaking application rewards depositors with Suzaku points, which measure participants' contributions to ecosystem growth. As of July 28, 2025, Suzaku’s core decentralization protocol, which enables Avalanche L1s to transition from Proof-of-Authority (PoA) to Proof-of-Stake (PoS), is scheduled to launch in Q4 2025.

The Suzaku founding team has developed in the Avalanche ecosystem for over two years and previously built Ash, an open-source toolkit for launching Avalanche L1s. During Ash’s development, the team discovered that secure decentralization posed a key challenge for Avalanche L1s. Backed by the Avalanche Foundation, the team designed Suzaku to address this challenge directly. As of July 28, 2025, Suzaku’s restaking module has attracted $7.0 million in TVL.

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Why Avalanche

Avalanche is designed as a multichain platform for creating custom L1 chains. Each Avalanche L1 operates as an independent network with its own rules, economic model, and validator set. Developers can deploy custom virtual machines to tailor execution to their focus and configure consensus mechanisms based on their security preferences. L1s are created and managed via Avalanche’s Platform Chain (P-Chain), which handles the genesis and configuration of each L1. Avalanche also provides tooling, such as the Avalanche CLI, to simplify the L1 development lifecycle. L1s in the Avalanche ecosystem have interoperability through a cross-chain communication protocol called Avalanche Interchain Messaging.

The Avalanche9000 “Etna” upgrade in December 2024 introduced smart contract–based control over validator set composition. This new capability was a key enabler for Suzaku’s decentralization infrastructure, especially through its BalancerValidatorManager contract, which implements onchain logic for adding, removing, and reweighting validators. These components allow developers to build custom L1s while benefiting from Avalanche’s shared infrastructure and ecosystem.

Proof-of-Authority Consensus

Proof of Authority (PoA) is a permissioned consensus model where a fixed set of pre-approved, identity-bound validators is authorized to produce blocks and validate transactions. PoA is one of the consensus options available for Avalanche L1s and is commonly used by early-stage networks seeking rapid deployment and operational stability. In this model, trusted entities, which are often the core development team, maintain control over network security participation.

While PoA is typically a starting point, Avalanche supports the evolution toward more decentralized models, such as Proof-of-Stake, over time. A progressive decentralization path like this is relevant for emerging L1s that lack a distributed validator set. Suzaku supports this transition by providing middleware for flexible validator sets. Its infrastructure allows a new chain to start with PoA for bootstrapping purposes, then gradually incorporate external validators and staking mechanisms as the chain matures. As of July 28, 2025, most Avalanche L1s in mainnet use PoA for simplicity and performance.

Notable Projects on Avalanche

MapleStory Universe is a blockchain-based expansion of Nexon’s flagship game, MapleStory, built on its own Avalanche L1 called Henesys. MapleStory Universe enables true player ownership of in-game assets as NFTs and supports a user-driven economy. The decision to deploy on Avalanche reflects a strategic focus on performance. Nexon reportedly invested $100 million into the initiative, showing its commitment to integrating blockchain functionality into its game through Avalanche.

Kite AI is the first AI-focused L1 on Avalanche. Its core innovation is the introduction of Proof of Attributed Intelligence, an attribution mechanism that tracks and rewards contributions from various participants, such as data providers or model developers. Kite AI is backed by a team with industry expertise from backgrounds at Uber, Databricks, Near, and PayPal.

These examples highlight the growing adoption of the Avalanche L1 technology stack by serious, well-capitalized teams pursuing unique use cases. Notably, Suzaku is partnering with PLYR, a gaming-focused L1 that uses Suzaku to decentralize its validator set, and with Dexalot, a CLOB DEX L1 using Suzaku for progressive decentralization and liquid staking. This shows that Avalanche L1s are emerging as credible platforms, and Suzaku plays a complementary role in this landscape by lowering the operational and security barriers for those L1s.

Suzaku’s Services for the Avalanche Ecosystem

Suzaku offers services designed to help Avalanche L1s secure their networks, manage collateral risk, and gradually decentralize their validator sets. Below is an overview of the core offerings Suzaku brings to the Avalanche ecosystem:

• Dual Staking: Validators can stake the native L1 token and a whitelisted collateral asset. This mitigates the risk of using only a native token, where early price volatility of a new token can weaken security. By diversifying across two assets, chains achieve more stable security with reduced exposure to token-specific price swings. Additionally, it can lower the overall cost of securing the network, using blue chip collateral with APYs of 1–1.5%, versus the higher APY needed to bootstrap a new token.
• Validator Marketplace: Suzaku creates a marketplace between stakers who supply native or blue chip tokens to secure L1s, operators who run L1 validator nodes, and L1 networks that reward both stakers and operators for contributing to security.
• LST-as-a-Service: An L1 can launch its own liquid staking token with Suzaku’s vault architecture, with the VaultTokenized contract wrapping the L1 native token into an ERC-20 share token.
• Progressive Decentralization: Through the BalancerValidatorManager, L1s can utilize Suzaku to transition their validator set at their own pace. This smart contract allows L1s to adjust the weights of security modules to go from PoA to PoS, or a hybrid.

Suzaku Tokenomics

The SUZ token will be the utility and governance token for the Suzaku ecosystem. The total supply is set at 100.0 million. Final allocations may be adjusted post-TGE, depending on the amount of tokens sold during the public sales. Any unsold tokens will go toward the Foundation Treasury. Upon launch, liquid staking will be supported through Yield Yak’s Milk Vaults, an auto-compounding yield vault that allows users to stake SUZ for sSUZ.

Allocations

• Ecosystem & Community (30.0%): 30.0 million tokens are allocated to support the long-term development of the Suzaku ecosystem. This will be distributed via grants for projects expanding Suzaku, hackathon prizes, SUZ stakers, liquidity providers, and users who contribute positively to the network. 10% of this allocation is unlocked at genesis.
• Core Contributors (18.0%): 18.0 million tokens are allocated to team members.
• Foundation Treasury (16.0%): 16.0 million tokens will be used as a strategic reserve to fund operational expenses, protocol R&D, and future ecosystem initiatives under the direction of the Suzaku Foundation. 15.0% of this allocation is unlocked at genesis.
• Liquidity (10.0%): 10.0 million tokens will be fully unlocked at genesis. This allocation supports initial SUZ listings on DEXs/CEXs and facilitates stable market formation during the early stages of network expansion.
• Public Sales (10.0%): 10.0 million tokens sold through public offerings to expand the Suzaku stakeholder base. 100% of this allocation is unlocked at genesis.
• Airdrops (7.0%): 7.0 million tokens are allocated as rewards for early Suzaku supporters to recognize their role in network activity and awareness.
• Private Sales (5.0%): 5.0 million tokens sold through private offerings to fund early development. 30% of this allocation is unlocked at genesis.
• Advisors (4.0%): 4.0 million tokens are allocated to key advisors.

At TGE, 26.9% of the total token supply, excluding airdrops, will be in circulation. There are no cliffs for any of the allocations. The season one airdrop allocation accounts for 4.25% of the total supply, with the rest to be distributed in future rounds. The allocations with vesting periods are as follows:

• The Private Sale allocation follows a 9-month linear vesting period.
• The Ecosystem & Community allocation follows a 12-month linear vesting period.
• The Contributors and Advisors allocations both follow an 18-month linear vesting period.
• The Foundation allocation follows a 24-month linear vesting period.

Swissborg Token Sale

As of July 29, 2025, Suzaku has a portion of tokens for sale through SwissBorg, giving users early access to the SUZ token before launch. To participate, users must:

• Download the SwissBorg app (iOS or Android) and complete KYC verification.
• Express interest by entering the amount wished to invest; this registers commitment ahead of the sale launch.
• Deposit committed stablecoins when the sale window opens.

If total commitments exceed the pool size, allocations are prorated; otherwise, users subscribe in full on a first-come, first-served basis. All tokens purchased in this round will be fully unlocked at TGE.

SUZ Token UtilityAvalanche Exposure

Staking SUZ tokens provides direct exposure to the broader Avalanche ecosystem. By staking SUZ, users participate in the security of L1s and earn potential rewards through incentives or airdrops from new Avalanche L1s and DeFi partners.

Revenue Share

SUZ holders can stake tokens to help secure L1 chains and earn a portion of fees. Initially, staking rewards will be distributed in SUZ tokens, and over time, will be paid in protocol fees.

Governance

Staked SUZ confers voting power based on the number of tokens staked and community engagement. As Suzaku matures, protocol parameters will be subject to an open governance process where stakers determine major decisions.

Gas Fees of Suzaku L1s

Beyond staking and governance, SUZ will be the native token for any L1 chain the Suzaku team launches. SUZ would serve dually as the staked asset and the gas token on these chains. An example is the Suzaku Relayer Network, an enhancement to Avalanche’s Warp Messaging protocol, where SUZ is used for gas on interchain messaging transactions.

Closing Summary

As Avalanche continues to build a diverse multichain ecosystem, Suzaku’s middleware protocol helps address a pressing challenge for emerging L1 chains in securing sufficient early-stage economic backing. Its dual-staking model lets emerging L1s bootstrap security with both their native token and blue chip assets, mitigating early-stage attack vectors that come from low token value. Beyond its staking architecture, Suzaku offers emerging L1s a reference design that can flex from Proof-of-Authority to Proof-of-Stake. This flexibility lets new L1s deploy rapidly, while providing a clear path toward a fully decentralized validator set.

Looking ahead, Suzaku could become a core part of decentralization in Avalanche’s ecosystem, with the TGE marking a step toward democratizing both security and governance. By reducing security risks for new L1s and providing a framework for network maturity, projects can focus on innovation, knowing that their network is secured through Suzaku. However, the extent to which Suzaku can achieve broad adoption will ultimately determine its relevance as a foundational piece of Avalanche’s ecosystem.