3.3 Why Avao Built a Custom Chain

Rather than building on an existing Layer 1 or Layer 2 network, Avao chose to develop its own blockchain to meet the specific needs of its ecosystem. Avao Chain is optimized for:

● Fast, deterministic finality: Transactions are confirmed in seconds, with no risk of forks or rollbacks.

● Enterprise-grade fault tolerance: The network remains secure and operational even if a portion of validators fail or act maliciously.

● Governance integration: The chain is natively designed to support vote-escrowed governance (veAOV), emission tracking, and protocol-level decision-making.

● Compute coordination: Avao Chain acts as the settlement layer for the decentralized compute marketplace, ensuring transparent job execution and reward distribution.

Avao Chain follows a hybrid public architecture — open for anyone to use, yet guided by governed validator operations that provide accountability, auditability, and operational clarity. This balance makes the chain both accessible and reliable, supporting regulatory alignment while still preserving the freedom and creativity of permissionless innovation.

By building its own chain, Avao owns the foundation, creating infrastructure that is cohesive, tightly integrated, and designed from the ground up to serve its ecosystem.