TokenPost
Hello? This is TokenPost. Today, we will delve deeply into the research by Messari Research on Szazku's Avalanche L1's gradual decentralization. We will focus on discussing how new Layer 1 chains in the Avalanche ecosystem can start stably and gradually achieve decentralization, with Szazku identified as the core technology.
Host
Good. It will be interesting to look at what problem Szazku is trying to solve, how it works, and what it means for the Avalanche ecosystem.
TokenPost
Then, let's first address the difficulties faced when a new L1 blockchain first emerges. There are many things, but I think the security issue is the most significant.
Host
That's right. Especially, it is quite difficult to secure the initial network security with just its native Token.
TokenPost
That's right. If Token price volatility is high, it can become a pretext for attack.
Host
Yes, and from the beginning, it is almost impossible to have a perfectly decentralized validator set.
TokenPost
That's exactly the point that Szazku we're discussing today is trying to solve.
Host
Yes, exactly. Szazku is a kind of middleware protocol running on Avalanche, and the core idea is a dual staking model.
TokenPost
Dual staking
Host
Yes, so it's a method of staking not only the native Token of the new L1 but also blue-chip assets like ABEX or stablecoins that have already been verified for stability. Through this, we can say that network security is borrowed.
TokenPost
So a new L1 is utilizing the credibility of existing strong assets. Oh, this is quite clever.
Host
That's right. It can definitely reduce initial security risks.
TokenPost
Even if the native Token price is unstable, it can prevent the entire network from shaking.
Host
That's right. And another thing is that blue-chip assets usually expect a relatively low APY.
TokenPost
Yes, that's right.
Host
By covering part of the security costs with this, the L1 can also achieve network operation cost savings.
TokenPost
Wow, there are many advantages. So how do people participating in this dual staking, those with blue-chip Tokens or node operators, connect with this L1 project?
Host
Ah yes, so Szazku provides a validator marketplace. It's literally a market that connects the L1 network and Tokens, stakers wanting to stake, and those who will actually operate nodes.
TokenPost
Ah, it's like a marketplace where needed resources and participants meet.
Host
It plays a role in efficiently matching them.
TokenPost
I see there's also a gradual decentralization feature here. What is this?
Host
Yes, this is also one of Szazku's core technologies. Using a smart contract called Balancer Validator Manager, an L1 chain can start with a somewhat centralized method, for example, a PoA or Proof of Authority method where a few trusted entities perform verification.
TokenPost
Initially focusing on stability
Host
Then, as the network matures, as users increase or time passes, it can flexibly transition to a decentralized PoS Proof of Stake model or a hybrid model mixing these two.
TokenPost
This must be very attractive for L1 creators. It means customizable settings by stage?
Host
That's right. It can adjust the level of decentralization according to the L1's growth rate.
TokenPost
But isn't there a risk of becoming too centralized in the initial PoA stage?
Host
It's a point worth considering, but in this Szazku model, blue-chip asset stakers participate even in the initial PoA stage, so it can play a role of checks and balances. Of course, it's also important how transparently the L1 project itself discloses and communicates its operational plans.
TokenPost
That would be the case. Oh, and I saw something called LST Ether Service earlier, supporting Liquid Staking Token issuance
Host
Yes, that's right. It's an additional service that increases capital efficiency by liquidating staked assets.
TokenPost
The features are really diverse. But why did such a solution emerge from Avalanche? There are many other platforms.
Host
Avalanche itself is special. It was originally designed as a platform where custom L1 blockchains called subnets can be easily created. The development tools like Avalanche CLI are well-established, and especially the recent Etna upgrade, which allows controlling validator sets through smart contracts, was decisive. The technical foundation for solutions like Szazku was laid.
TokenPost
Ah, the platform itself seems to have been created with that in mind. If we look at actual cases, it might be more relatable. Nexon's MapleStory Universe has reportedly received a $100 million investment.
Host
Yes, that's right. It's a representative Avalanche L1 utilization case, and there's also Kite AI, an AI-specialized L1.
TokenPost
Suzaku itself already has partnerships with some places. A game L1 called PLY and a CLOB DEX L1 called Dexalot.
Host
That's correct. Actual adoption cases are emerging. On the restaking module side, assets worth $7 million, or TVL, have already been gathered as of July 2025. The core protocol is scheduled for release in the fourth quarter of 2025, and the SUZ Token is planned for release in August. The total supply is 100 million.
TokenPost
The SUZ Token's utility seems quite interesting. It's not just for governance voting, but also provides revenue sharing when staking.
Host
Yes, there's a protocol revenue sharing function.
TokenPost
There's also an opportunity to receive airdrops or incentives from new Avalanche L1s, so in a way, it's like investing in the entire Avalanche ecosystem.
Host
That's right. You can expect such ecosystem exposure effects. Moreover, in the L1 directly launched by Suzaku, it's planned to be used as a gas token, so the utility can be considered quite high.
TokenPost
It's truly multi-purpose.
Host
Yes, so to summarize, Suzaku can be seen as playing a crucial infrastructure role in expanding the Avalanche multi-chain ecosystem. It helps smooth out the initial security issues and the transition to decentralization that new L1 projects experience, thereby lowering the entry barriers.
TokenPost
Its role certainly seems important.
Host
This could be meaningful to you as well. For example, by staking SUZ tokens, you can indirectly contribute to the growth of these new promising L1 projects while also expecting potential rewards.
TokenPost
We've learned a lot about Suzaku today. Lastly, I'm thinking, if middleware solutions that help create and operate L1s like Suzaku continue to emerge, won't the competition between blockchain platforms take a different form?
Host
That's right. Beyond the multi-L1 performance competition
TokenPost
Yes, an era might come where the ability to easily create L1s and support them, the capability of ecosystem cultivation, becomes more important. And it will be very interesting to see how this technological development might bring about new, specialized L1s that we couldn't have imagined. This is TokenPost.
