[DRAFT] Revenue-Based CELO Burn — Allocate 25% of Net L2 Sequencer Revenue to Permanent Burn

Hi, we agree with this proposal in general as it’s in-line with community discussions.

Please add to the upcoming Aug 20th, 2026 governance call agenda Celo Governance Call #96 | Aug 20th, 2026 .

In answer to your open questions:

  1. Is 25% an appropriate starting allocation? Yes 25% is a great starting point to burn the “Net Distributed to the Community Fund”, as per ongoing cello chain revenue transactions. The community can vote to increase or decrease this in the future.

  2. Should the percentage be fixed until governance changes it, or automatically reviewed at defined intervals? We suggest it is automatically reviewed at 6-month intervals, and it remains at the most recent % (as ex. 25% in this case) until a new vote changes the %. If this can’t be automatically reviewed, then fixed until governance vote changes it.

  3. Should the mechanism eventually include revenue-backed staking alongside burning? We suggest this is a separate topic, not to be included in the proposal to burn %.

  4. What is the safest technical implementation for recurring burns? Please confirm this with Celo Core Co. and the Governance Working Group individuals (@0xj4an-work @Wade @0xGoldo @KateNora) since it seems the Bi-Weekly L2 Sequencer Revenue Distribution is a manual posting by @KishanP: kindly advise if the net distributed to the community fund is currently automated. And if you’d be willing to manually generate the burn transactions on a bi-weekly basis.

  5. What additional metrics should be included in the six-month review? For now, manual vs. automatic burn processing.

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