The most used blockchain network, Ethereum, has continuously surged in demand this year, there’s still more demand than the leading all-purpose blockchain can handle.
As a result, the cryptocurrency industry has seen the rise of many other projects which are Ethereum’s competitors, and one of them is Avalanche.
Similar to Ethereum, Avalanche also has smart contracts to carry out a set of instructions on the blockchain that are important in running decentralized finance (DeFi), applications, and Non Fungible Tokens (NFTs).
Launched in 2020, Avalanche is to implement transactions faster with lower fees than Ethereum. AVAX is the native token powering the Avalanche ecosystem.
Colony is a community-driven accelerator for the Avalanche ecosystem that evolves into a DAO to boost ecosystem growth. Colony is powered by a governance token, $CLY.
What Is Colony?
In simple terms, Colony provides funding to Avalanche-built projects in early stages and Liquidity to Avalanche DeFi protocols.
Colony supports developers and users to purchase and stakes not only Avalanche (AVAX) but other upcoming subnets tokens as well as allows to purchase selected Avalanche projects to form an Index.
Backed by a team who have many year-experience in both the traditional finance industry and blockchain projects including Ethereum and Avalanche. Operating in the crypto space for a long time, Elie, Colony’s CEO, knows what the ecosystem needs.
Elie and his team started developing Colony after recognizing that Avalanche’s services could fill the current gaps and are the technological breakthrough powering the consensus and the subnet customizability built on top. They were able to scale with high decentralization.
Starting in February 2021, the team behind Colony began work to replace outmoded systems by designing new ones with the structural integrity of traditional finance for DeFi, specifically the Avalanche ecosystem.
Colony has been set to create a foundation encouraging and supporting the next generation of applications built on the Avalanche platform.
Colony’s solution is the combination of traditional capital with the power of a community where users are given open governance, support, and inclusion.
Colony will act as an accelerator of the Avalanche ecosystem by capitalizing on early-stage projects and more through a highly regulated fund structure.
Providing capital to increase liquidity and secure networks by running nodes as ways that Colony contributes to the Avalanche ecosystem. In addition to these features, there will be an index dedicated to projects built on Avalanche.
Some activities will drive this business including the development of a Web3 application to power an inclusive Venture DAO mode, the support for early-stage projects to build and evolve on Avalanche, and the power of the Avalanche community.
Community at the Core
With Colony, the beating heart is its community. Colony empowers the Community to fund across the Avalanche ecosystem. The avenues from Colony’s investments will be returned to the Community through features including airdrops, the buyback mechanism, and rewards.
This regulated framework will help traditional investors approach the Avalanche Ecosystem, therefore, that could foster its growth with new capital.
Colony has raised over $1 million in seed funding. The round was co-led by GBV Capital, Foresight Ventures, and the Avalanche Foundation with the participation of other investors including Avalaunch, Avatar, Yield Yak, NGC Ventures, Spark Digital Capital, MEXC Global, Synaps, and ZBS Capital.
There was a Private Sale opened to all early-community members and strategic investors with +$15M committed.
Colony offers a foundation for applications on the Avalanche-based platform with a funding mechanism.
Traditional Venture Capital firms are highly centralized and only benefit their LPs but do not completely suit the long-term growth of the ecosystem due to a mismatch between the fund lifespan and the one of the ecosystem. Colony is changing this paradigm by giving governance to the community at the beginning.
Decentralized autonomous organization (DAO) runs on blockchain technology which is recently grabbing the attention of more conventional investors. Members of the crypto community predict that DAOs will become the next big trend in the crypto space to compete with traditional business structures.
In traditional organizations, there’s typically a hierarchy. For example, a formal board of directors, executives, or upper management often determines the structure and has the power to make changes in the company.
On the other hand, DAOs are decentralized, therefore, they aren’t governed by anyone. As the governance of each DAO is recorded on the blockchain, it cannot be changed without the DAO’s members’ votes. Members of each DAO can vote on decisions together and are normally on equal footing.
Colony’s Inclusive DAO has introduced a new concept in the crypto space, known as Ecosystem Farming. For the average investor, it seems almost impossible to invest in projects while they are still in their early stages, let alone when they are at the ground level of development.
Colony conceptualized a revolutionary approach, in which this gap can be bridged.
Colony is solely focused on Avalanche and its beating heart is the Community. Its community now is empowered in voting and the influence while all the created value will be rerouted back to the Community.
The CLY Token
CLY is a unique token used for both DAO governance and is the core of Colony. The token was created as a new type of asset which features both empowers and controls. Its goal is to create a codified harmony between holders, the protocol, and the assets contained within it.
Users will be able to buy their token CLY on CEX and DEX and then stake them on Colony’s App. Staking the tokens will allow them to access all of the app features. The minimum amount is 50 token CLY for 20 days at least.
The CLY token holders will receive rewards from staking Avalanche, providing Liquidity, and Tokens via airdrop of Colony-funded projects in the early stage.
Colony’s customer segments include VCs and the community members interested in being part of the Avalanche ecosystem. Users will be able to stake their colony token to receive multiple airdrops of projects building on top of the Avalanche ecosystem.
For beginners, it is super easy for them to learn to stake their coin and earn benefits. Meanwhile, professional users of crypto have access to governance where they can participate in projects, analyses and be part of investment decision-making.
Currently, Colony is exploring the Avalanche Ecosystem and approaching its community through social media such as Twitter, Telegram, Medium, and the website.
Although the Airdrops Mechanism feature just premiered, it is promised to bring a great incentive to token holders building a diversified portfolio on the Avalanche ecosystem by staking their Colony token.
Meanwhile, the Buyback Mechanism creates recurring buying pressure on CLY, while redistributing bought $CLY to the active community members.
More Coming from Colony
As the world has been exploring blockchain technology which is believed that there is still a lot of untapped potential. Blockchain technology has made a new form of the finance industry and keeps scaling other factors.
The Avalanche ecosystem is one of the new ones that can bring the structural integrity of traditional finance to DeFi and this is where Colony comes in.
Colony is creating a new future where it combines traditional capital and the power of community. Colony is the cornerstone to access the growth of the Avalanche ecosystem by steering investments and ensuring sustained network effect across the Avalanche Ecosystem.
Colony is all about its community. Community at core is a truly decentralized and democratized financial ecosystem. Ecosystem farming is one token to access the growth of an entire ecosystem.
To learn more about Colony, just click right here!