Avalanche ecosystem accelerator, Colony Labs, is boosting the Avalanche ecosystem by investing $10million to support the long-term growth of the network.
The company revealed buying more than 500,000 $AVAX tokens in the past few months. This chunk, which is worth around $8m, will be used to institute a Validator Program for the benefits of $AVAX holders.
The announcement also unveiled a Sustainability Program for the network. Both these initiatives are anchored by 300,000 $AVAX and 200,000 $AVAX respectively.
In a proof-of-stake (PoS) blockchain network, block creators are called validators, who are responsible for checking transactions and verifying activity. They also vote on outcomes and maintain records and are crucial in maintaining security of the network.
The Validator Program involves quarterly staking of 300,000 $AVAX. It also linearly redistributes the generated yield (minus fees) to Colony’s CLY staking contract. The rewards from this validator node will be distributed to $CLY stakers without requiring them to stake their own $AVAX, trade it, or provide liquidity.
Rewards from this will be directed back to the $CLY stakers community through consistent airdrops throughout the year. This initiative is also aimed at establishing a consistent base value for $CLY relative to the price of $AVAX.
Colony Labs CEO, Elie Le Rest, commented on this saying: “As we channel a $10 million investment into the Avalanche ecosystem, we’re not just growing Colony Lab – we’re fostering the long-term potential of AVAX. Avalanche understands that real blockchain growth comes from expanding its use cases, and its technology reflects this vision by creating a more inclusive and customisable blockchain landscape. We’re thrilled to align with Avalanche’s vision, and we’re fully dedicated to sharing the rewards of our strategic move with our community.”
The Sustainability Program, on the other hand, seeks to substantially bolster Colony’s total value locked (TVL), serving as a magnet for new users and propelling Colony to Avalanche’s forefront. It involves 50,000 $AVAX and quarterly staking of 150,000 $AVAX, with the generated yield being allocated to fuel two pivotal pillars: Liquidity Provision and Liquidity Incentives within Colony’s forthcoming DEX.
Last month, the Avalanche network enjoyed a massive surge in the number of transactions with the figure hitting a three-month high of 310k. This level which was last seen in early August materialised on the back of decentralised social media (DeSo) application Stars Arena’s rising popularity. The app gathered much traction amongst users as it achieved the highest number of daily active users on the Avalanche C-Chain.
Back in July, the Avalanche Foundation also launched a new initiative to drive the future of asset tokenisation. It committed a total of $50 million in purchasing tokenised assets minted on the Avalanche blockchain, unveiling what it called ‘Avalanche Vista’.
The program is aimed to support and demonstrate the “value of tokenisation, the process of creating an on-chain digital representation of an asset, item or thing–something that Avalanche is designed to facilitate with greater speed, scalability, and customisability”.
Despite the latest announcement of the investment boost, Avalanche’s native token $AVAX was down by almost 5% daily as it changed hands for $20.95 at the time of press. However, it continued to trade in the green side as the token was up by over 16% weekly.