Avalanche Colony’s ecosystem accelerator has raised $ 18.5 million in start-up money to launch the next generation of Avalanche blockchain projects, underscoring the growing demand for the Proof-of-Stake ecosystem.
The investment round was led by the Avalanche Foundation, the organization that oversees grants for ecosystem development, with additional contributions from Shima Capital, HashKey, GBV Capital and Bixin Ventures. Members of the landslide community also participated in the seed trip.
Colony will use the funds to finance early-phase projects based on the avalanche network and to provide liquidity for decentralized finance or DeFi protocols. The colonial community will also have the opportunity to invest in projects early through a process called ecosystem farming.
As part of the Colony Verification Program, 10% of the accelerator’s capital will be invested in the AVAX Avalanche game. An additional 10% will be distributed to the top 10 Avalanche projects at market value. Fifty percent will be used to support teams and projects built on the network, and the remaining 30 percent will be allocated to liquidity protocols.
On this topic: Financing Redefining: Avalanche launches $ 200 million fund, wXRP debuts in Ethereum October 29-November. 5
Avalanche quickly became a leading blockchain technology project after receiving support from some of the largest cryptocurrency venture capital funds, including Three Arrows Capital, Zhu Su and Polychain Capital. As a result, the value of AVAX has risen sharply, up 2,900% since the beginning of the year. With current values, Avalanche has a total market value of $ 25.9 billion, making it the 11th most active blockchain project.
As the Cointelegraph reported, the Avalanche Foundation unveiled a new $ 200 million fund in early November to encourage developers to start working on the ecosystem. Funding was provided by Three Arrows Capital, Polychain Capital, Dragonfly Capital, CMS Holdings and Ava Labs of the Avalanche Foundation. At the time, the foundation said that the new foundation would prioritize four areas: DeFi, business applications, non-financial tokens (NFT) and so-called cultural applications.