Colony Labs, one of the developers of the Avalanche ecosystem, will invest in the future of the ecosystem.
Colony Labs announced that it has purchased more than 500,000 Avalanche (AVAX) tokens over the past few months.
The company will use these funds to establish a validator program that will benefit AVAX holders.
In blockchains that work with the Proof-of-Stake (PoS) mechanism, validators are tasked with ensuring the security of the network and approving new transactions. For this, they stake certain amounts of tokens and receive rewards in return.
Colony Lab will also invest in an index called Colony Avalanche Index (CAI), which tracks the price of certain tokens within the Avalanche ecosystem. In addition to AVAX, the index also includes Trader Joe’s JOE token.
Revenues from the Validator program will be transferred to the community staking for CLY.
Colony Lab CEO Elie Le Rest said, “By investing $10 million into the Avalanche ecosystem, we are not only growing Colony Lab, but also supporting the long-term potential of AVAX.” said.