I am very proud of the plan for InterChain this year!
For this year, at Crypto Factor, we have divided a set of great focus areas, and all of them bring exciting new tech to the space.
InterChain Fees Optimization and Node Operations
It has been a while since we last shared a development update, but like everyone else, we have been busy clearing our backlog at the year's end.
As part of the focus areas for the year at Crypto Factor, we want to share some upcoming changes planned for InterChain, as well as address recent changes affecting InterChain fees.
One of our main focuses in the evolution of InterChain is the long-term optimization of fees, the expansion of node operations, and initial steps toward decentralizing the network. We plan to implement a series of steps divided into two phases by the end of this year.
Phase 1 - Extend InterChain Mesh Layer (Execution Layer)
1. Implement support for multi-chain state validation and risk evaluation modules. This will enable protocols to choose where to deploy their master state and risk modules, thus lowering fees for executing cross-chain transactions.
2. Introduce time-based block confirmation to reinforce expected execution and reduce the deviation between block mints and finalization.
3. Integrate mempool commitment proof validation into the node consensus layer to lower the costs of mempool merge operations.
Phase 2 - Extend InterChain Node Consensus Layer
1. Enhance the current peer-to-peer block propagation protocol and the masterchain storage to decrease block storage and L1 transaction costs.
2. Update the node consensus layer to a high-performance BFT consensus engine focused on cost efficiency, stability, and higher transactions per second (TPS), while facilitating further decentralization of node operations.
3. Implement block signing as part of the node consensus layer to promote further decentralization and reduce transaction costs.
4. Expand the network by adding new node operators to enhance the stability, availability, and security of the blockchain.
These steps aim to ensure lower fees, faster execution, and greater stability for InterChain in the long run. Due to recent changes on the Partisia Blockchain and the adjustment of wMPC GAS, fees on InterChain have increased to cover additional costs. This situation requires a short-term resolution until our previously mentioned plan is implemented to provide a smooth user experience on InterChain.
To address the high fees in the short term, we are implementing a new system that will allow us to subsidize a portion of the fees for executing IC transactions, helping to bring the costs closer to previous levels. We expect this system to restore normal levels of usage for InterChain until further changes can effectively lower costs in the long term.
The new system is expected to be deployed in the coming weeks, and we look forward to an exciting year for Crypto Factor and InterChain.
As always, we will see you on-chain!
Over the last few weeks, the team achieved:
- CFR and IC on AVAX
- First v2 services on AVAX and v2 subscriptions (CFR payments)
- New protocol infrastructure for two projects' MVPs
GM Avalanche
For over a month, the team at Crypto Factor Labs has been focused on Avalanche. This includes enhancing the new version of our execution layer, deploying InterChain, and progressing with new protocol developments. While Crypto Factor has already shared some information, this post will provide an overview of the key technical details.
AVAX and InterChain Mainnet
We have successfully deployed a partial chain on @avax, connecting it to the Crypto Factor InterChain mainnet. Running an InterChain partial chain allows us to deploy and integrate our infrastructure while extending existing ecosystems.
Avalanche is the fourth blockchain connected via InterChain and the first added after the Anchor fork. This fork enabled lighter, faster confirmations, allowing InterChain to scale more effectively with a greater number of partial chains. Consequently, the AVAX partial chain manages its state independently of the rest of the InterChain network and benefits from low-cost, rapid transactions.
Following the Anchor update, we also halved the target block time and block confirmation times, resulting in 30-minute blocks with 15-minute confirmation times when fully saturated.
CFR and CFEL v2 on AVAX
After successfully deploying the partial chain on Avalanche, we began implementing the Crypto Factor Execution Layer. AVAX is the first blockchain where the v2 infrastructure is being deployed on the mainnet, starting with the token and distributor templates necessary for CFR token deployment.
Some improvements made to the simple token ecosystem template in v2 include:
- Tokenomics that no longer require external state calls, reducing gas usage and eliminating the need for external call management.
- Like all v2 templates, tokens now offer metrics and state interfaces for easy backend indexing and real-time analytics.
- A focus on distributor-based tokenomics, simplifying transfers and lowering token transfer costs.
Notable improvements to the simple distributor template introduced in v2 include:
- Distribution now occurs with a single smart contract call, eliminating partial states and simplifying management.
- The distribution process is now structured as an execution tree, where each node forwards or consumes the payload. This can all be audited on-chain, resulting in a more transparent and stable process.
- The Distributor service is now a subscription service running on the Crypto Factor relay protocol, with operational fees covered by CFR.
With the first set of v2 services implemented on AVAX, we successfully deployed the CFR token, which is now awaiting the token bridge's public launch. This will enable InterChain transfers, and we expect to make the bridge available to the public in the next 1-2 weeks.
New Protocols
Crypto Factor has announced the development of two new protocols focused on real-world assets (RWA), which will be deployed on AVAX using v2 infrastructure: one for building lifecycle-based digital assets and another for managing tokenized assets, such as carbon credits.
We will provide more detailed technical information about both protocols in separate posts in the coming days.
As always, we look forward to seeing you all on-chain.
Introducing Anchor
Last week, we shared the exciting "Anchor" fork with you, and this week, we are back with more details on the changes coming to InterChain.
Here's a quick summary; you can find the full details in the article below.
InterChain before Anchor
The fee model behind InterChain comprises three main components: masterchain consensus fees, partial-chain consensus fees, and transaction execution and mempool fees.
The largest contributor to the overall fee is the masterchain consensus fees, paid in wMPC on the Partisia Blockchain. The size of the fee and wMPC gas properties directly affect InterChain execution and transaction fees.
Masterchain consensus fees cover on-chain execution of multi-chain block proposals, state validation, and the full signing and publishing lifecycle. The subsidy introduced earlier this year temporarily reduced fees; block signing and publishing remain the main fee contributors.
Currently, confirmation of blocks is part of the block publish execution. After the set confirmation time passes, the next minted block confirms past master blocks, leading to variable transaction finality times depending on the blockchain's usage.
"Anchor" fork
Let's look over "Anchor" in greater detail and showcase how the fork makes InterChain faster, cheaper, and more scalable.
Off-chain block signing
As a first step towards greater balance in off-chain and on-chain masterchain consensus execution, "Anchor" introduces off-chain block signing.
The change splits the current block lifecycle, removing the on-chain trigger for block signing and replacing it with an off-chain process that uses the already available p2p protocol.
The consensus changes eliminate unnecessary on-chain event registration overhead, resulting in a faster, cheaper signing process.
Independent confirmation
"Anchor" introduces independent block confirmations. The change decouples confirmation from the block publish lifecycle and introduces an independent step in the master and partial block lifecycles.
As a result, an independent block confirmation step is added to the partial block lifecycle. Once partial block confirmation is completed, all scheduled transactions in the block are executed and cannot be reverted, achieving finality.
Conclusion
The changes introduced by "Anchor" are the first step towards the bigger goals set for 2026: lowering the fees for masterchain consensus and transaction execution, and achieving predictable execution time.
To see the full details, check out our article - links below.
As always, we will see you all on-chain.
To be honest, v2 is a game-changer for us - reshapes the whole business model for Crypto Factor:
- More flexible services
- Greater possibilities for protocols
- Subscriptions, smarter deployment, and service fees.
- A lot more....
Avalanche, Crypto Factor Execution Layer v2, and InterChain Anchor Update
At Crypto Factor Labs, we are in the midst of a busy Q1, and as we approach Q2, we want to share some exciting news with everyone over the next few weeks.
Avalanche
As previously announced, we are deploying our infrastructure on Avalanche, which is now our next supported blockchain. Some reasons for this choice include its cost-effectiveness and fast execution, the target user base, and its unique technical features that enhance our infrastructure offerings.
To start, we have deployed some components of the Crypto Factor Execution Layer (CFEL) on the C-Chain testnet and have begun developing a new set of services and protocols. As part of this deployment, we have also launched an InterChain partial chain on Fuji and successfully integrated it into the IC testnet. CFR is now flowing seamlessly between the Polygon and Avalanche testnets as we conduct extensive testing before the mainnet deployment.
There is much more innovative technology to come on Avalanche from Crypto Factor, so stay tuned for our updates.
Crypto Factor Execution Layer
For over two years, we have maintained the codebase for the Crypto Factor Execution Layer (CFEL), originally known as the decentralized SaaS engine (ODA). The execution layer comprises a set of on-chain SaaS/IaaS components and services that form the foundation of our token ecosystem deployments.
The execution layer has supported the Crypto Factor Ecosystem and notable client ecosystems on DeFiChain and Polygon. While it has served us well, the evolution of Crypto Factor, our clients, and the products we are developing has outgrown the capabilities of the original execution layer. As a result, we are now introducing the next iteration: CFEL v2.
The v2 of the execution layer has been redesigned; it will function as a library of flexible and extendable on-chain and off-chain components, establishing it as a foundation for protocol building rather than predefined template deployments. Token ecosystems will be just one type of protocol built on top of v2; CFEL can also be utilized to develop fixed-income products, tokenization protocols, marketplaces, and much more, by us or others using the on-chain components.
The new Crypto Factor Execution Layer is currently being developed on the Avalanche C-Chain Testnet and will initially launch there, where the first set of protocols based on v2 is also being created. Once deployed on the C-Chain mainnet, it will later be extended to all supported chains.
InterChain "Anchor" Fork
We are excited to announce the first-ever fork for the Crypto Factor InterChain mainnet, codenamed "Anchor."
The updates and significance of "Anchor" deserve a dedicated post, which we will share next week. For now, we wanted to give you a heads upβit will involve improvements in block and execution speeds, along with changes to fees.
We are looking forward to an exciting 2026 and will keep you informed with our upcoming updates. As always, we look forward to meeting you all on-chain.
Looking forward to stepping onto C-Chain with some CFR through InterChain. We have many opportunities to build specialized protocols by adding Avalanche to our toolkit.
Network Expansion - Introducing Avalanche πΊ
Weβre pleased to share that Crypto Factor will integrate the Avalanche Partial chain into Interchain and expand operations to the Avalanche blockchain. @avax@AvalancheFDN
This is not a reaction to trend. It is a planned and deliberate step in the evolution of our infrastructure.
We are expanding the surface area of Crypto Factor - carefully, strategically - to support new categories of tokenised assets and commercial deployments, while continuing to strengthen the network integrations that already power our ecosystem.
Why Avalanche?
Avalanche combines high throughput with near-instant finality through its multi-chain architecture. For tokenisation at scale, performance is not a feature - it is a fresh foundation.
Its subnet model enables sovereign, purpose-built layer-1 environments. This allows projects building on our infrastructure to operate within tailored execution contexts, while remaining connected to the wider ecosystem through Interchain.
Avalanche has also emerged as a serious environment for real-world asset tokenisation. Strong tooling, flexible asset issuance and native cross-chain capability make it well suited to structured, long-term deployment models.
And sustainability matters.
Independent benchmarking places Avalanche among the most energy-efficient major proof-of-stake networks. For infrastructure that aims to support responsibly aligned markets, that characteristic is not incidental - it is intentional.
A Complementary Expansion.
This move does not replace or compete with our existing partner chains.
Partisia Blockchain, DeFiChain and Polygon remain foundational to Crypto Factorβs strategy.
- @partisiampc - @defichain - @0xPolygon
Avalanche extends our reach. It strengthens Interchain. It broadens what we can build - for who, with confident intent.
Labs will be sharing more on what this unlocks and technically entails very soon! @cfr_labs
We are pleased to report that the first set of measures was successfully deployed yesterday via a soft fork of the master mempool contract on Partisia Blockchain.
The operational cost of the upgraded master mempool is now approximately 20% lower overall, and most of the remaining costs can now be derived from integrated subsidy contracts that allow for Crypto Factor GAS reserves to maintain sustainability in the short term.
These updates significantly reduce InterChain transaction fees by about 70% in the mid-term as we continue to implement the remaining measures planned for this year.
Thank you all for your patience, and we look forward to seeing you on-chain.