Celo is a blockchain platform designed for global financial inclusion, initially launched as a Layer 1 (L1) blockchain but transitioning to an Ethereum Layer 2 (L2) using the Optimism OP Stack. This shift enhances scalability, security, and interoperability while maintaining Celo’s mobile-first approach. The platform uses a centralised sequencer, reducing validator roles while keeping staking rewards and governance participation. CELO, the native utility and governance token, functions both as a native asset and an ERC-20 token, enabling gas fee payments, staking, and cross-chain transfers. CELO supports fee abstraction, allowing gas fees to be paid with assets like cUSD and USDC. The project, developed by cLabs and supported by the Celo Foundation, focuses on financial accessibility. The Celo Governance Proposal (CGP-133) initiated the L2 migration, aligning Celo with Ethereum’s security while preserving its original financial inclusion mission.
