How do you create a new subnet?

• A. Initialize the subnet by configuring its VM and security parameters.
• B. Validators are added then governance automatically approves.
• C. Define the subnet's VM and security parameters, decide on validator participation, and submit for governance/approval on the P-Chain.
• D. Submit a request to the X-Chain to create a subnet; no governance.

Answer: (C)

Creating a new subnet on Avalanche starts by defining what it will run: you specify the subnet’s VM (the virtual machine that enforces its rules) and the security parameters that govern who can participate and how validation works. Then you decide whether validators will participate and under what conditions. Finally, you submit the subnet creation as a governance proposal on the P-Chain, where it must be reviewed and approved by the network’s governance process. The P-Chain handles subnets and validator sets, so approval there is required for the subnet to exist. This is why the best answer includes defining the VM and security, deciding on validator participation, and submitting for governance/approval on the P-Chain.