I have a question for the cello team

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I have a question for the management team.

I would like to ask how the Token Burning Mechanism discussed last year is currently progressing.

What benefits have been gained for the holders by reducing the number of validators and raising fees?

If the burning mechanism is not implemented,

it appears to be nothing more than a benefit for a small number of management members.

The result of reducing the number of validators appears to have merely caused a drop in the price of Celo as the excluded validators sold the Celo they held. So, exactly what aspect of this has proceeded in a positive direction for the network?

In any case, the operating expenses of the Celo network were likely used for promotional costs through Celo’s buyers purchasing it, and this was probably reflected in your living wages.

What should future buyers expect? This might sound like whining, but as a buyer who has consistently used a portion of my income to purchase because I considered the project promising, I would appreciate your answer.

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Hello, Celo community.

I am writing this post to share my honest concerns regarding the recent price and market capitalization of CELO.

Currently, the Celo network is demonstrating clear performance.

470,000 to 500,000 daily active addresses, over 1.1 million daily transactions, more than 14 million MiniPay wallets, and top-tier real-world USDT usage.

Looking solely at real-world usage metrics, it is a significantly excellent level even among L2 networks.

However, the market capitalization remains stuck at around $36 million.

This discrepancy can no longer be explained by the phrase “the market hasn’t understood it yet.”

### Why This State Is Dangerous

If the price remains at this level in the long term, the following problems will occur in a chain reaction:

- Departure of core contributors and builders

- Increased price volatility due to a lack of liquidity

- Difficulty in attracting new capital and partnerships

- Decline in governance participation

While usage has been proven, **value accrual** is not functioning sufficiently. If left unchecked, this could result in a project where “actual usage is possible, but the token is dying.”

### What Is Needed Now

A structure to send Sequencer revenue to the Community Fund has already been established.

There is also a mechanism to convert stablecoin fees into CELO.

However, the scale and tangible impact are still lacking.

I believe the following need to be pursued more actively:

1. **Regularizing the Burning of Net Sequencer Revenue**

Governance decisions to regularly burn a certain percentage of the CELO accumulated in the Community Fund must be made clearer and more predictable.

We must be able to provide holders with the assurance that “as usage increases, the supply of CELO decreases.”

2. **Transparent Disclosure of the Value Attribution Process**

On a weekly or monthly basis, the following must be disclosed in numerical form:

- Scale of Sequencer revenue

- Amount of stablecoin fees converted to CELO purchases

- Community Fund inflow

- Decisions regarding burning/reinvestment 3. **Designing to Intentionally Create Demand for CELO**

We need to further strengthen the actual use cases where CELO is needed, such as gas fee discounts, staking incentives, and benefits for using CELO within MiniPay.

4. **An Attitude of Managing Price and Usage Simultaneously**

Optimism that “price will naturally follow as usage increases” is insufficient.

We must also face the realities of the capital market.

### Conclusion

Celo has already proven much.

Its potential as a mobile payment and stablecoin Rail is undeniable.

However, a project cannot be sustained in the long term based solely on usage.

If the token fails to properly reflect the network’s growth, builders and capital will eventually leave, and usage may waver along with it.

We must now move beyond the stage of boasting that “we have high usage” and transition to the execution stage of **“making usage translate into CELO value.”**

I hope the community and the core team address this issue more seriously.

I look forward to continued constructive discussions.

Thank you.

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