According to CoinDesk, Colony Lab, an Avalanche ecosystem developer and accelerator, has announced a $10 million investment to support the long-term growth of the network. The company has purchased over 500,000 AVAX tokens, worth $8 million, in recent months, which will be used to establish a validators program benefiting AVAX holders. Validators are participants in proof-of-stake (PoS) blockchain networks that help maintain security and confirm new transactions submitted to the blockchain by staking their tokens and typically earning rewards.
In addition to the validators program, Colony Lab will invest in the Colony Avalanche Index (CAI), a yield-bearing token index in the Avalanche ecosystem that includes assets like AVAX and Trader Joe's JOE. Fees from mints or redemptions will be distributed to Colony Lab's CLY token stakers. Rewards from both the initial and upcoming validator programs will be directed to the CLY stakers community. Colony Lab CEO Elie Le Rest expressed excitement about aligning with Avalanche's vision and dedication to sharing the rewards of their strategic move with the community. AVAX token prices have dropped 3% in the past 24 hours after rallying 30% last week.