Avalanche's ecosystem fund and accelerator program have posted an official statement on Medium, confirming they will cease operations at the end of Q1 2026 after 5 years of operation within the Avalanche ecosystem.
According to the announcement, the team stated that the development environment within the AVAX ecosystem has changed significantly, including slower growth rates, declining Capital inflows and new projects, along with adjustments related to core technology and asset governance, making the current operating model unsustainable.
Colony emphasized that in its early years, the project benefited from Avalanche's strong growth momentum. However, in recent times, the decline in cash flow and the number of new projects joining the ecosystem have significantly impacted the ability to implement the long-term strategy. Additionally, changes related to the technology and asset governance mechanisms within the ecosystem are also XEM factors that have prompted the team to reconsider its direction.
During the liquidation and closure phase, Colony stated that it will not utilize liquidation or community funds. The team also affirmed that the CLY Token they hold will not be sold or used for Staking. The current plan includes making the final allocation to CLY Staking and gradually shutting down the project's frontend interfaces.
