Colony, a prominent fund and accelerator within the Avalanche ecosystem, has announced it will cease operations by the end of the first quarter of 2026. The decision comes after five years of involvement in the AVAX ecosystem, with the team citing challenges such as declining ecosystem growth, reduced funding and project inflows, and changes in core technology and asset governance. In its official statement, Colony assured that during the liquidation period, liquidity and community funds will remain untouched. Additionally, the team's CLY tokens have not been sold or staked. A final distribution to CLY stakers is planned, and the front-end will be gradually shut down as part of the closure process.