Celo plans to upgrade its token economic model and will publicly solicit opinions, intending to introduce a buyback and burn mechanism

The chair of the Celo Foundation, Rene, announced that the CELO token economic model will be upgraded, considering the introduction of a token buyback and burn mechanism to improve the long-term economic structure. He stated that as network activity grows, the existing model needs to be redesigned to better accommodate the increasing demand for transaction fees.

The upgrade process will be carried out in four phases: first, public feedback will be solicited on the Celo forum; in the following weeks, researchers, token economists, and ecosystem contributors will be invited to participate; next, research modeling will be conducted; the third phase will involve community review; and finally, completion will occur through governance procedures. The entire process will be conducted in a fast-tracked, transparent, and community-driven manner, led by the Celo Foundation and cLabs.