This proposal aims to accelerate the growth and long-term adoption of the Celo ecosystem by strategically allocating CELO from the Community Fund toward the Chainlink SCALE program (Introducing the Chainlink SCALE Program | Chainlink Blog). As part of the SCALE program, CELO tokens will cover operating costs (e.g. gas costs) for Chainlink oracle nodes operating Data Feeds on the Celo network.
Celo has been built on the principles of accessibility, sustainability, and scalability. To continue building on this foundation, the ecosystem’s critical infrastructure for Web3 services, including oracles, must embody the same principles.
It’s for these reasons we propose that the Celo Community Fund allocate a portion of its funds to support the Celo ecosystem’s participation in the Chainlink SCALE program, which will facilitate the launch of Chainlink oracles on the Celo network.
As the industry-standard Web3 services platform, Chainlink has enabled trillions of dollars in transaction volume across DeFi, insurance, gaming, NFTs, and other major industries including notable sustainability focused projects. As the leading decentralized oracle network, Chainlink enables developers to build feature-rich Web3 applications with seamless access to real-world data and off-chain computation across any blockchain and provides global enterprises with a universal gateway to all blockchains.
Chainlink SCALE Program
Chainlink SCALE—Sustainable Chainlink Access for Layer 1 and 2 Enablement—is an initiative that enables blockchain communities to fast-track smart contract innovation and support long-term sustainability in their native ecosystems by offsetting operating costs (e.g. transaction gas fees) of Chainlink oracle networks for a period of time.
In doing so, developers get native access to key oracle services, which can include conﬁgurations speciﬁc to the ecosystem’s needs, such as Data Feeds (https://data.chain.link/) with higher update frequencies to enable more advanced and low-latency smart contract applications. The SCALE program is also a determining factor in prioritizing blockchains for the integration of additional Chainlink services.
As blockchain ecosystems in the Chainlink SCALE program mature, the operating costs of oracle networks can increasingly transition toward being fully covered by dApp user fees. This moves dApp ecosystems toward a holistic and self-sustaining economic model that is more viable in the long term for all participants:
Celo can help grow its dApp ecosystem to attract a larger user base and support the network’s long-term cryptoeconomic security.
Chainlink can help grow Celo via oracle services so Celo’s dApp ecosystem can power real-world use cases that generate value.
dApps have a runway to create sustainable fee-generation models based on real value-add services so they can eventually support the full backend costs of blockchain and oracle infrastructure through user fees.
Joining the SCALE program will establish a sustainable economic framework between the Celo and Chainlink ecosystems and provide a foundation from which Celo developers can build accessible, sustainable, scalable, and secure smart contract applications.
To establish the SCALE Rewards and Fee Pool to support the operating costs of Chainlink node operators, we propose that the Celo Community Fund allocate 5,980,314 CELO to the node operators supporting Chainlink Data Feeds on the Celo network over a three-year term. The 5,980,314 CELO would be allocated in a one-time transfer on a date provided by Chainlink Labs. The CELO amount to be provided via this proposal was chosen based on the estimated operating costs of Chainlink Data Feeds on Celo over the anticipated lifetime of the program.
The funds will be made available to node operators periodically to support operating costs. At the end of the program’s existence, post renewals, any unused CELO will be returned to the Celo Community Fund.
Additionally, quarterly reviews will be conducted between Chainlink Labs and the Celo Foundation to ensure continual alignment on services provided to the Celo ecosystem.
Upon successful execution of this proposal, integration work on deploying Chainlink Data Feeds on Celo will scale up with a dedicated team within Chainlink Labs focused on the initiative. Additional Chainlink services including Veriﬁable Random Function (VRF) and Automation are also being explored for deployment on Celo to further support the growth of the Celo ecosystem. As a part of Celo joining SCALE, Chainlink Labs will also provide dedicated monitoring support for Chainlink services deployed on Celo and deploy a rigorous testing process before service deployment.
As clariﬁcation, the work contemplated above is being made available to the Celo blockchain and not to the Celo Community Fund (which would only be voting to support these beneﬁts).
Governance & Multisignature
The Rewards and Fee Pool keys will be initially jointly held by Chainlink Labs, the Celo Foundation and a Celo Community Fund representative (such as the Climate Collective) via a smart contract vault or wallet, where Chainlink Labs and eventually representatives of the Celo community will hold sufﬁcient keys to effect transactions from the pool. We hope the transition to full community key management (from Celo Foundation) will occur within  months of launch and we will follow up with a post on the process for community input. The Celo Community Fund members will only use their keys if the funds in the pool are not supporting node operator costs.
Representatives of the Celo Community Fund will be jointly selected by the Celo Foundation and Chainlink Labs, who will be disclosed to the Celo Community Fund.
Joining the Chainlink SCALE program presents a unique opportunity to supercharge the Celo ecosystem’s growth by providing developers increased access to the external data resources required to power increasingly advanced smart contract use cases within DeFi, ReFi, and beyond. After community feedback has been provided, a vote will be initiated to enter into the program.