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Colony, the prime accelerator for the Avalanche ecosystem, had in its latest investment round received $18.5 million. The Avalanche Foundation piloted the funding round. The Avalanche Foundation is the arrowhead for Avalanche’s product development support.
Other participants in the funding round included GBV Capital, Bixin Ventures, HashKey, and Shima Capital. Colony community members also played a part in the funding round.
Monies realized from the funding round will be used for investment in budding projects (via ecosystem farming) and liquidity provision for the various projects.
The AVAX Effect Resonates Across the Blockchain Space
AVAX has been one of the top-earning cryptocurrency projects this year. Many see Avalanche as an Ethereum Killer. In many aspects, Avalanche has proven its mettle within the cryptocurrency space.
The Avalanche ecosystem has filled in obvious gaps that have existed. It has given the ecosystem the required push for new projects that dot the landscape.
However, ecosystems such as Ethereum have a first-mover advantage. One of those advantages is the ability for projects to raise funding. Solutions such as Colony have helped bridge the gaps that exist within the Avalanche ecosystem.
Colony raises the bar when it comes to fundraising for Avalanche projects. Giving projects access to liquidity helps jumpstart the ecosystem components that will spur further adoption of the Avalanche ecosystem. Colony’s focus creates a decentralized venture capital model that supports Avalanche-related projects.
It also allows community members to participate in early-stage funding. They restricted early-stage funding in other ecosystems.
Colony Gives Power to the People
Colony’s Venture Decentralized Autonomous Organization (DAO) model is the future of investing. The democratization of the critical components of investments in projects has led to community-based involvements in the processes and process flows.
This power with central authorities also allows the community members to determine how exactly governance works.
Colony also takes the democratization of venture capital funding to another level. Members help shape how investments evolve as the Avalanche system takes on a new dimension.
The Decentralized Finance (DeFi) industry lacks innovative investment models for acceleration and liquidity provision. Colony provides a unique solution for DeFi as institutional interest in the industry increases.
And now, the announcement we all have been waiting for.🔥@Colonylab IDO is set and ready to go. Are you prepared for the launch?🚀
We are thrilled to hold it on none other than our favorite launchpad @AvalaunchApp! 🔺#Avalanche #AVAX #XAVA #CLY #DeFi #DAO #EcosystemFarming https://t.co/pVVbwjWyaD
— COLONY 🔺 (@Colonylab) November 30, 2021
Colony also increases the roles it plays from being an accelerator. Colony is a VC Fund, liquidity provider, startup catalyst, and more. It gives new meaning to the organizations that enable projects to achieve scale within Smart-Contract capable blockchain ecosystems.
How The CLY Token Grows the Avalanche Ecosystem
The CLY token performs several activities. These include liquidity provision, governance, Airdrops, and even token redistribution via the ecosystem’s buyback mechanism.
The buyback mechanism is one of the system bulwarks that enables demand. The validator program keeps a strategic 10% investment in the AVAX token, 50% investment in native Avalanche projects, 10 in top-tier projects by capitalization, and 30% for liquidity support.
This distribution model allows the Avalanche ecosystem to have higher growth rates. The AVAX token price jump and the interest garnered in subnet tokens deployed so far are more than enough evidence.
It also provides a basis for high growth potential for both AVAX subnet projects and the AVAX ecosystem itself. Even distribution of the CLY token gives everybody within the Avalanche ecosystem a shot at success.
A Fair Deal For Everyone
As interest in cryptocurrencies continues to rise, the role of organizations to provide fundamental support is increasing. Colony is one of those organizations that is equitable from a strategic perspective.
Equitable in terms of the strategy of its operations.
A singular approach to project incubation causes problems.
A multiple-pronged one provides several chances and opportunities. The ecosystem farming model enables the rapid growth and development of early-stage enterprises within the Avalanche subnet.
This distribution puts the Avalanche ecosystem on the path to the dominance of the cryptocurrency space within a short time.
It also gives new projects a chance to grow on the Avalanche subnet. Something that other ecosystems lack. As project owners and developers continue to create new projects, accelerators play will become larger than life within cryptocurrency ecosystems.
Many of these ecosystems will have issues because of a zero-community-oriented approach to operations. We all know how the community is critical for cryptocurrency projects to take root.
Others, however, will provide a basis for the growth and development of these new ecosystems. Colony provides a model that gives everyone a shot at creating a project that could someday rule the world.
One aim accelerators fulfill through their operations.
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