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Colony Raises $18.5 Million To Fund Next-Generation Applications Built on Avalanche

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Lilly Mwogah Fact check, Reviewer
    Summary:
  • Colony is a community-managed business incubator that has grown into a decentralized independent organization.

Colony is a community-managed business incubator that has grown into a decentralized independent organization.  They recently announced that they have raised  $18.5 million in initial funding.

The Avalanche Foundation led the launch that saw participation by  Bixin Ventures,  Shima Capital, GBV Capital and Hashkey. In addition, the Avalanche community members were also participants in the round.

The colonies plan is to allocate funds within the Avalanche ecosystem to sponsor the early projects that have potential, maintain an index in addition to Avalanche projects, verify networks via staking capabilities and provide liquidity for DeFi protocols. 

Colony has ecosystem farming that will facilitate the community’s investment in the projects with potential at the ground level development stage. This will create opportunities that were previously accessible to only angel investors and VCs.

The Colony has an open governance mechanism that guarantees that funds are assigned to the Avalanche ecosystem to benefit the community and the ecosystem. The value created by the Colony’s investments is to be used in the community by a buyback mechanism, staking rewards and airdrops.

In its validator programme, 10% of Colony’s assets will be used in AVAX to be staked. In addition, the Colony will also contribute to subnets validation if given ago ahead. 50% of Colony’s capital will finance efficient development and growth of the best projects and teams building on Avalanche. Another 10% will be used on projects ranked on the market cap and built on Avalanche. Finally, a community vote will determine projects raked within the Index.

CEO of Colony, Le Rest, said:

We are delighted to announce that we’ve established close ties with the Avalanche Foundation itself. 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 has a unique hybrid native token known as CLY, which provides liquidity within its value flow and DAO governance. CLY is a revolutionary token that incorporates an Airdrop Mechanism as a crucial feature to incentivize token holders to stake their tokens and build a robust portfolio on Avalanche.  

The project has another standout feature in its Buyback Mechanism, which creates upward pressure on CLY, allowing it to redistribute the CLY purchased to active community members. The token empowers the community while aligning incentives across multiple pillars to create harmony between stakeholders and keep growing the protocol and its assets. 

General Manager at Ava Labs, Nicolas Lemaitre, said:

It’s great to see Colony seeking to create a decentralized democratic financial ecosystem by giving the community access to early-stage projects in seed and private rounds. This is very much aligned with Avalanche’s core value: community first.”

Colony is scheduled to launch in Q4 2021 via an initial token sale and shall focus on empowering chosen projects built on Avalanche via its initial capital deployments. In addition, Colony intends to move to a DAO structure in the second half of 2022 via its unique subnet on Avalanche in a move to decentralize itself and create new incentive models for investors who hold CLY tokens. 

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