Avalanche ecosystem accelerator Colony has reportedly obtained $18.5 million via seed investments, to bootstrap the next generation of Avalanche blockchain initiatives.
Specifically, the fundraising – which is a sign of increased demand for the proof-of-stake ecosystem – was reportedly led by the Avalanche Foundation – an entity in charge of providing supervision for ecosystem development grants.
The funding round further witnessed Shima Capital, HashKey, GBV Capital and Bixin Ventures also joined in, along with members of the Avalanche community.
Per Colony, the fund will reportedly be channeled towards financially supporting early-stage initiatives developed across the Avalanche network, along with offering liquidity for DeFi protocols.
Colony’s community will further have the chance to make investments in early-stage initiatives via a process dubbed ecosystem farming.
Under Colony’s validator program, 10% of the accelerator’s fund will reportedly undergo deployment via Avalanche’s native AVAX token to support staking. An additional 10% will be dedicated to the top 10 Avalanche initiatives, in terms of market capitalization.
Half of the capital will be channeled towards facilitating teams and projects developed across the network, with the rest (30%) devoted to liquidity protocols.
Avalanche has reportedly wasted no time in building its standing in the list of top blockchain projects, following the support received from a few major venture funds in the crypto sphere, nominally Zhu Su’s Three Arrows Capital and Polychain Capital, among others.
Consequently, the value of AVAX has reportedly witnessed a major surge, gaining more than 2,900% year-to-date.
