WOO X new listing — CELO
CELO — A brief project and tokenomics overview
This week WOO X listed its 104th SPOT listing — CELO and this blog is the first in a series to provide factual information around the project which may assist with investment decisions. This blog isn’t investment advice but is intended to help you DYOR to decide if it is a project that interests you.
If you do decide to invest then you can, of course, trade on WOO X with no fees, just by staking 1800 WOO. (50/50 referral reward link for signing up: https://referral.woo.org/KrkwN2ZSpo5Dqqmq6
The below is just a very brief summary but if the project takes your interest then all of the information in much greater detail is provided in their whitepaper which can be found here: whitepaper (celo.org)
Or on their website here: https://celo.org
CELO has been established with the aim of tackling two specific barriers deemed to be preventing mass adoption of crypto as a means of everyday payments. These are:
Ease of use & token price volatility.
CELO’s initial deliverable is to be a mobile phone based payment system which is as easy to use as sending a text message. This is to be achieved by what they refer to as “address based encryption” in which a user verifies mobile phone numbers to a standard crypto public address. This then enables the phone number to be used as the public address.
The CELO whitepaper gives a great deal of information on the mechanisms around this and how they have identified and addressed a series of what may have been potential drawbacks, so at the risk of repeating myself, please refer to the above link for all the juicy details.
CELO are also introducing an asset where the value is kept stable.
Most businesses, if they are able to accept a crypto payment, would likely want to convert this to FIAT straight away rather than expose themselves to volatile price fluctuations.
The CELO protocol has two assets, CELO USD and CELO.
CELO USD will have a supply that fluctuates based on demand and CELO is a more standard fixed supply token. The protocol incentivises users to adjust CELO USD supply to match demand by either creating more CELO USD by sending a USD value of CELO to the reserve or burning CELO USD to redeem CELO. Once again, a lot more detail can be found here: stability (celo.org)
CELO will be supported by reserves and by several regional stable value currencies.
CELO is a layer 1 protocol which was implemented as a fork of Ethereum and CELO is used for gas fees just as ETH is on Ethereum. CELO was, apparently, the fastest growing blockchain in 2021. Token holders of CELO will receive rewards under a proof of stake mechanism from each block.
Over the last 12 months there has been an average of 600,000 active addresses per month and over 10m transactions per month.
The last paragraph is copied directly from the whitepaper:
“In conclusion, we have introduced a protocol for social payments, called the Celo protocol. The Celo protocol combines an address-based encryption protocol that allows a sender to use a phone number or email address directly as a public key, with a reserve-backed stabilization protocol to minimize volatility through an elastic supply rule. Together, these allow for a more seamless experience using cryptocurrencies as a means of payment. Further, they enable a monetary ecology that includes local and regional currencies, social dividends, demurrage-charged currencies, and in the future, natural-capital-backed currencies”.
Regarding the tokenomics of CELO which should be a key factor in any crypto investment decision, the total supply will be 1bn, of which 456m is currently circulating.
Each month tokens are added to supply through:
- Ongoing sales (out to October 2023)
- Founders and advisors (out to March 2025)
- Staking rewards (long term)
- Community and operational grants (long term)
114m of the circulating supply is currently held as part of the CELO reserve.
The release mechanism is relatively gradual. 45.6% of supply is circulating now, 56.5% will be circulating when the founders vesting completes in March 2025 and 75% won’t be circulating until June 2031. It can therefore safely be assumed that any investment won’t be affected by any meaningful dilution.
Full distribution details can be found here:
https://docs.google.com/spreadsheets/d/1slQ5jzBwPhuneKm1TuwbG4EPdfpYVw62Hs9V6S479iA
CELO reached an ATH of USD7.68 in Sept 2021 and is currently trading at USD1.15
We hope this gives a useful brief overview of our latest listing and please refer to the links for the finer details.
