The Avalanche ecosystem developer and accelerator, Colony Lab, announced that it will contribute $10 million to help the network’s sustained expansion.The company announced that it has purchased over 500,000 AVAX tokens for a total of $8 million in recent months. The money will be utilized to establish a validators program that will assist AVAX holders.
In a proof-of-stake (PoS) blockchain network, a validator is an individual who contributes to security upkeep and verifies newly submitted transactions.By staking their tokens, validators accomplish this and usually receive rewards.
Avax and Trader Joe’s JOE are two examples of the assets in the Avalanche ecosystem that are included in the Colony Avalanche Index (CAI), a yield-bearing token index in which Colony Lab will also invest.Colony Lab’s CLY token holders will receive a portion of mint or redemption fees.The community of CLY stakeholders will receive rewards from both the first and next validator initiatives.
“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,” CEO Elie Le Rest said in a message to CoinDesk. “Avalanche understands that real blockchain growth comes from expanding its use cases, and its technology reflects this vision by creating a more inclusive and customizable 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.”
After rising 30% last week, the price of AVAX tokens has decreased by 3% in the last 24 hours.