The ecosystem community-driven accelerator from Colony recently raised $18.5 million for seed funding for the growth of future Avalanche Projects. Spearheaded by the Avalanche Foundation, this initiative has drawn many renown organizations on board. From GBV Capital, Shima Capital, Bixin Ventures to Hashkey, this project is nothing short of impressive.
What is even more impressive however is the spontaneous growth that Avalanche has experienced in the last couple of weeks. The blockchain has not only grown to host more than 380 projects, it has also skyrocketed AVAX’s market cap to be among the 10 ten in cryptocurrencies.
Taking note of the tremendous growth, Elie Le Rest, CEO of Colony said, “We are delighted to announce that we’ve established close ties with the Avalanche Foundation itself.” Colony is certainly dedicated to this new partnership, stating “We’ll be sharing deal flow to create a more fertile ground for projects building on Avalanche, the fastest, highly customizable, smart contracts platform in the blockchain industry.”
Colony’s Community Rewards
Avalanche has always prioritized community.
In fact, General Manager at Ava Labs, Nicolas Lemaitre said that by, “Colony seeking to create a decentralized democratic financial ecosystem…” the company, “Is very much aligned with Avalanche’s core value: community first.”
With that in mind, the plan Colony has for this seed funding is to split it for various functions. First, the company intends to give Avalanche 50% ring-fenced, early-stage funding. There will also be a 30% provision for liquidity of the existing Decentralized Finance (DeFi) protocols. Lastly 10% will help validate networks using subnets staking ability and AVAX, and another 10% will be high-ranking Avalanche projects, with the aim of forming a quarterly rebalancing index
That’s not all. Colony will also open up opportunities that were previously only accessible to Angel Investors and VCs. Using its ecosystem farming Colony will help society to invest in Avalanche’s early-stage projects.
The company’s sober governance is also an advantage to the community. Colony will ensure the money allocated gets to benefit users. It will also ensure all profits generated go back to the community. This means Avalanche users will get occasional airdrops, buybacks and good staking rewards.
The CLY Token
Colony runs on its unique token CLY. The CLY is a hybrid token used in decentralized autonomous organizations (DAO), rewards for liquidity providers, ecosystem airdrops and Avalanche staking rewards.
With great focus on users, Colony gets its community to create diverse portfolios by staking tokens on Avalanche. Once users do this, they get airdrops meant for projects receiving funding from Colony. Colony then applies its buyback mechanism, which creates a repetitive buy pressure on CLY. This leads to the redistribution of bought tokens to active community members.
What Does The Future Hold
Colony plans on launching the first CLY public sale soon. This will come before the company launches its capital deployment strategy for Avalanche’s ecosystem. All this is focuses on creating more incentivised models for all users who hold Colony tokens.
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