Colony Lab, a developer and accelerator of the Avalanche ecosystem, said it will invest $10 million to support the network’s long-term growth.
The company said it has purchased more than 500,000 AVAX tokens, worth $8 million, in recent months and that these funds will be used to establish a validator program that benefits AVAX holders.
A validator is a participant in a proof-of-stake (PoS) blockchain network that helps maintain security and confirms new transactions submitted to the blockchain. Validators do this by staking their tokens, usually earning rewards.
Colony Lab will also invest in the Colony Avalanche Index (CAI), a token index that generates performance in the Avalanche ecosystem, which includes assets such as AVAX and Trader Joe’s JOE. Minting or redemption fees will be distributed to Colony Lab CLY token stakers.
Rewards from the initial and upcoming validation program will go to the CLY betting community.
“As we channel a $10 million investment into the Avalanche ecosystem, we are not only growing Colony Lab, we are fostering the long-term potential of AVAX,” CEO Elie Le Rest said in a message to CoinDesk. “Avalanche understands that blockchain’s true growth comes from expanding its use cases, and its technology reflects this vision by creating a more inclusive and customizable blockchain landscape. We are delighted to align with Avalanche’s vision and are fully dedicated to share the rewards of our strategic move with our community.”
AVAX token prices are down 3% in the last 24 hours after rising 30% last week.
