$cCOP - Initial Liquidity and Marketing Plan

History of the Proposal

I will start by mentioning that since the day I knew the blockchain of Celo and the wallet of Valora :purse: and the possibility of sending money from one wallet to another just with the phone number, I said:
"This is Nequi in Blockchain, if we had a local currency in this wallet everyone would use it as they use Nequi " :boom:

But when I asked Valora about this possibility to have a new local currency and have it in the wallet, the answer was that the App could be configured to show balances in local currency and so it would show the balance in Colombian Pesos.

But this does not solve the loss of value of the money that people put in their wallet, because for example if today you buy COP$100.000 it would be approx US 25 at a rate of COP$4.000/US and if tomorrow the exchange rate rises to COP$3.900/US people would see in their wallet the value of COP$97.500 which would mean that for example they already have one less Coca Cola :cup_with_straw: to buy. :cry:

COP/USD rate 360 days graphic

This situation for the common people would simply take it as an unsustainable situation and they would not want to use their wallets to keep their daily money and even less to use it in stores to receive payments, etc. because a store selling e.g. US $1,000 per day could not assume these small changes in the exchange rate.

When I finally achieve Valora understand about the diference of simply showing balances in Local Currencies and have the real Local Currency the challenge moved to create a local currency, but to be able to do that I have to backup the currency or ask Mento Protocol to make this new local currency, this was a huge challenge and I tried to convince them to do it and convince about the usability of this new currency.

That’s why one year ago I posted the idea in the forum in March 2022:

But we also have another situation, forum is a big barrier for normal people to participate and express their necesities, and more difficult in English, so I decided to make a post in Spanish in Oct 22:

I thought this mission I need to leave it away because nobody is gonna hear me, maybe Celo is focused in other countries, but one day @marek conect me with @Markus and @olektronisch from Mento Labs and I start explaining them the possibilities, but they said at the beginning they are focused on the development of Mento V.2 and with this new protocol communities will be able to mint their own local currencies. :raised_hands: Waht a wonderfull notice, but I need to wait until they made the whole development of this new protocol.

Some of this steps began near December 2022:

Mento Protocol Allignment

Few days ago Mento posted the article in Mirror:
How do we create a more user-centric DeFi with local stable assets on Mento?

And the article encourage communities to develop new Local Currencies, that’s a great timming not planned but give me a lot of happiness because we are thinking in the same way and this is super important, is mission alligned by Celo and his communities.

Why ask Community Fund for this budget

Time ago I was learning how Community Fund work and what are the funds used for and I have seen lot of proposal passing and receiving funds from the Community Fund to make events, funding the born of some DAOs, refilling the Prezenti Fund to be able keep runnig their Grants Program, etc…

So, why not ask Community Fund for a budget to create a new Stable and develop the Celo Ecosystem in Colombia looking for the mass adoption

That’s why I decided to ask Community Fund for a budget to be managed by a Team of people that really cares about Colombian People and really want to help people understand more about Cryptocurrencies and help them with their financial situations, alligned with the Celo Vision “Our mission is to build a regenerative digital economy that creates conditions of prosperity for all.”

And the best part is that the 75% of this budget we are asking for the proposal is not gonna be offramped or swapped, so Celo price is not gonna be Impacted, because the 75% of the Budget is for Collateral locked in Mento Prtocol, Liquidity locked in Uniswap, and Liquidity moving in CEX (On/Off Ramps) bringing a lot of inflow of money into Celo Ecosystem.

Is not expensive :money_with_wings:

The Marketing Plan for Two Years cost only US 276.000 for two years of a whole team of eigth (8) people working in this comitment, very experienced and well knowed people in Colombia Crypto Ecosystem.

How much it would cost for Celo Foundation to have this same Team with the same passion and dedication working to achieve this goal? Maybe US 768,000 - US 960,000 :thinking:

For more than six (6) months I were talking to a lot of people asking about their opinions and ideas, and I found the perfect team to make this challenge a reality, Colombian people needs a Local Currency they can trust and use for their daily transaactions, and we have a whole Ecosistem that allows us to make it happen. :metal: :rocket:

Returning Funds

We are also thinking about giving those funds back or maybe transitioning into a cCOP DAO in future and keep developing Ecosystem around the cCOP adoption, for example developing our own Microcredits platform :eyes: :bank: and help with the Financial Inclusion purpouse of Celo. :yellow_heart: who knows…

Colombian :colombia: Infraestructure for developing the proposal

Just a few examples of the infraestructure Colombia :colombia: already has, they are not all of them, but we can have some proximity and we can work togheter with them:

- Cobru: Has integrated the most commons ways of payments in Colombia that everyone use, and has also the possibility to make payments to the most common services and suscriptions in Colombia. They already have the possibility to use cUSD but what about if we said them they can use the cCOP?

- ElDoradoP2P: a SMS P2P platform that could be super affordable for sending remittances between Venezuela :venezuela: and Colombia :colombia::

- CocoPagos: Venezuelan On/Off Ramp with the possibility to use a Debit Card, they use Celo Blockchain so it’s easy to integrate the new cCOP

- Kravata: On/Off Ramp focused on provide solutions for Bussines.

Governance process review

While it is true that the governance process must be reviewed and adjusted, this does not imply that the proposals submitted should stop and wait for all these changes to take place, an example of this is the proposal submitted to vote On-Chain by cLabs yesterday Celo Governance by Staking Fund.