What is Celo (CELO)?

Celo is a blockchain platform that prioritizes mobile access, making financial dApps and crypto payments more accessible. Founded in 2018 by Marek Olszewski, Rene Reinsberg, and Sep Kamvar, Celo includes a decentralized Proof-of-Stake blockchain technology stack, its native asset (CELO), and stablecoins like Celo Dollars (cUSD) and Celo Euros (cEUR). Celo originally operated as an independent, standalone blockchain but is currently aiming to transition to become a Layer 2 network on the Ethereum blockchain. This transition involves consideration of various Layer 2 solutions such as Arbitrum, Optimism, and Polygon, with a final decision still pending (as of January, 2024). The platform's mission is to create a financial system promoting prosperity for everyone, blending unique purpose and connectedness values. Celo's approach to mobile-first solutions includes ultralight mobile clients and phone verification protocols for seamless crypto transactions from smartphones​​​​.

How does Celo (CELO) work? 

Celo works by leveraging its mobile-first design to provide seamless financial services on smartphones. Its assets, including CELO and its stablecoins (cUSD and cEUR), are backed by multiple crypto assets like BTC, ETH, DAI, and CELO itself. The platform is EVM-compatible, facilitating the development of dApps that can move across chains, carriers, and countries. Celo's light client and phone number mapping to public keys make peer-to-peer payments and financial dApps highly accessible. In terms of governance, Celo utilizes a formal on-chain governance process. The governance is managed through smart contracts and involves a quorum threshold model for proposal approvals​​.

What makes CELO unique?

What sets Celo apart is its commitment to being mobile-first and carbon negative. It was one of the first platforms to prioritize mobile phone users, offering an ultralight client for faster syncing and efficient transactions. Celo's transition from Layer 1 to an Ethereum Layer 2 further enhances its capabilities, aligning it more closely with Ethereum's ecosystem. This transition brings benefits like increased EVM compatibility, stronger network effects, and enhanced security through Ethereum’s robust security guarantees. Celo’s unique approach also involves decentralized sequencers, different from the centralized model prevalent in most Layer 2 solutions, ensuring greater decentralization and alignment with the protocol’s regenerative finance mission​​​​.

The CELO token: Utility & tokenomics

The CELO token, integral to the Celo ecosystem, serves various functions and has a well-structured tokenomics model:

Utility of CELO Token

• CELO primarily functions as a utility token within the Celo ecosystem.
• It is used for paying transaction fees on the network.
• Holding CELO tokens grants users governance rights, enabling them to participate in the decision-making processes on the Celo platform.
• The token can also be lent out on platforms like Moola Market to earn interest.

Tokenomics of CELO

• CELO has a capped maximum supply of 1 billion tokens.
• Approximately 524 million of these tokens are currently in circulation, representing about 45% of the total supply (January, 2024).
• The initial distribution of 600 million CELO tokens was done through private sales and auctions starting in June 2018.
• The distribution breakdown was approximately 45% to founders and the project, 20% to investors, and 35.5% as premined rewards and airdrops.
• CELO's vesting schedule decreases the rate of emission over time to ensure the Celo team's long-term commitment to the platform's expansion and development. The full vesting of the initial distribution is projected by April 2027.

Sustainability and eco-friendliness

• CELO, using a proof-of-stake consensus model, is supposedly being more energy-efficient compared to proof-of-work chains.
• As stated by the team, the Celo blockchain has been carbon negative since May 2021, with efforts to offset carbon emissions through various environmental initiatives.

Roadmap and future developments

• Celo's roadmap includes further development of the blockchain's NFT niche and the release of an official Celo NFT Marketplace.
• In 2022, Celo deployed on the Uniswap platform, aiming to increase DeFi activity and take advantage of its fast transaction speed and low fees.
• The Celo University Guild, launched in 2022, is an initiative to expand blockchain education and awareness through events and hackathons.
• CELO, as a token, is integral to the functioning and governance of the Celo network. Its tokenomics is designed to ensure sustainability and long-term growth of the platform. The focus on eco-friendliness and mobile-first solutions positions Celo uniquely in the blockchain space, aiming to make financial services accessible globally.

History of Celo (CELO)

Here's a brief overview of CELO’s  history:

Foundation and Mission: Celo was founded in 2019 by a team that included veterans from notable organizations like MIT, Stanford, Google, Visa, and the Gates Foundation. The founding team's vision was to build a mobile-first payment platform that would make financial services accessible to everyone, especially in regions where traditional banking is less prevalent.

Celo Foundation: The growth and development of Celo have been overseen by the Celo Foundation, a non-profit organization based in the USA. This foundation manages the development and promotes the Celo ecosystem.

Launch and Initial Development: After three years of development, Celo's Mainnet was launched on April 22, 2020. This launch date was selected to coincide with Earth Day, reflecting the project's commitment to environmental sustainability.

Eco-Friendly Approach: In 2021, Celo announced that it had become a carbon-negative blockchain. Celo has always emphasized being an eco-friendly blockchain. It operates on a proof-of-stake consensus model, which presumably consumes less energy compared to proof-of-work chains.

Transition to Layer 2: In a significant development, Celo announced a proposal to transition from a Layer 1 to an Ethereum Layer 2 network, considering the OP, ARB, and other chains. This move aims to align Celo more closely with the Ethereum ecosystem, increasing EVM compatibility, and benefiting from Ethereum’s robust security guarantees.

Price history and performance of Celo (CELO)

CELO was listed at $0.8 in May, 2020, at the beginning of the “DeFi Summer”. In August, it was already trading for $4.4. After a retrace back at listing price levels, CELO followed the entire crypto market pattern at large in 2021: A peak in April at $5.8, a bottom in July at $2.2, and its all-time high in September at $7.6. 

After losing most of its steam in the following months, CELO peaked one more time in April, 2022, reaching $4.8. As the bear market got its grips on the markets, it had an impact on CELO as well, pushing the asset below its initial listing price. Since then, CELO has been trading roughly below its listing price, in the range of $0.9 - $0.4.

How to buy Celo (CELO)?

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