Background of Colony's Shutdown
After operating for nearly five years, the Avalanche ecosystem fund and accelerator project Colony has officially announced that the team will cease operations by the end of Q1 2026. This decision stems from the recent slowdown in ecosystem growth, as well as weaker inflows of funding and projects.
Specific Reasons for Ceasing Operations
- Slowed ecosystem growth
- Reduced funding and project inflows
- Changes in core technology and asset governance structure
These factors have collectively made it difficult for Colony to advance its project goals.
Arrangements for the Wind-down Phase
During the wind-down phase, the Colony team has made it clear that they will not use protocol liquidity or community funds. Additionally, there has been no sale or staking of the associated CLY tokens. Final distributions will be made to CLY stakers, and the front-end interface will be gradually shut down.