Celo is a blockchain ecosystem leveraging phone numbers to further the global adoption rate of cryptocurrencies.
It’s estimated that 91% of the world population has access to a smartphone! Celo is hoping that by using phone numbers as public keys, they will be able to onboard the next several billion people into crypto. The adoption rate of mobile phone users is still outpacing crypto, and by carrying out their mission, Celo believes this gap will be filled.
Imagine a world where every smartphone came with a pre-built crypto wallet!
Celo’s aim isn’t just to bring crypto to as many people as possible; it’s to bring crypto to the people who need it most. Many countries don’t have the banking system we see in the UK or USA. Different countries have vastly different levels of infrastructure. Many people in non-western countries still exclusively use cash, and for those with limited/no access to banks, their control over their own money is often limited. However, the cost of a phone is now minimal, allowing greater access to the internet.
The blockchain is also smart contract-compatible, allowing for the development of decentralized applications on the platform. Celo hopes to combine its dual missions of mass crypto adoption and smart contract compatibility to become the top DeFi platform in the world. Where there are phones, there is the internet. Where there is internet, there is blockchain. And where there is blockchain, there is opportunity.
The strong team behind the project, with members from notable companies and institutions, has led many to believe Celo will have a lasting place in the wider cryptocurrency ecosystem.
The tokens
Unlike most blockchains, Celo has two native tokens. CELO is the utility token used for fees, staking and governance.
Additionally, their native stablecoin(s) are primarily used for transacting with protocols and other users. Multiple stablecoin variations are pegged to the Dollar, Euro and Brazilian Real, respectively (CUSD, CEUR, CREAL). The Celo Dollar is the most popular.
It uses a proof-of-stake consensus mechanism, allowing users to validate the network and partake in governance by staking their CELO.
What are the Tokenomics?
It has a capped supply of 1 billion tokens, 600 million of which were available at the launch of the mainnet. The other 280 million are released gradually depending on different vesting schedules and rewards for validating the blockchain.
Then, 120 million CELO are in reserve to place validity and price stability in the native stablecoins.
CUSD
Celo Dollar and the other denominations of stablecoins are matched to the underlying value of the Celo.
