Dear Celo Community,
Good news, and the kind that comes with receipts: following the approval of CGP-287 and the community discussion around Celo chain revenue, we’ve initiated the first transfer (for 2,566,770 CELO) of the ongoing L2 sequencer revenue payments to the Community Fund. This comes on top of the earlier transaction this year that refunded all prior L2 chain revenue to the Community Fund.
This post walks through the transaction, where the money comes from, and how the process will work from here on out. Consider it the first entry in an open ledger between the network and its community.
The First Ongoing Revenue Distribution
Since Celo’s transition to an Ethereum L2, the network has been generating revenue through sequencer fees. Under CGP-287, that revenue now flows to the Community Fund, where CELO holders decide what happens to it through governance.
For the period between April 9, 2026 and June 17, 2026, the distribution breaks down like the following:
- 2,566,770 CELO transferred to the Community Fund
- Fees earned in CELO were sent directly
- Fees earned in stablecoins were used to buy CELO at market prices the day of receipt
- Operating costs and revshare obligations deducted prior to distribution, as defined in CGP-287
This is the first transfer under the new ongoing framework, and it marks a real milestone: the value the network generates now accrues to the ecosystem that makes it valuable in the first place.
From Stablecoin Gas Fees to CELO
Here’s where Celo’s fee model does something genuinely interesting.
On most chains, you pay gas in the native token, full stop. On Celo, users can pay transaction fees in stablecoins. So what happens to all those stablecoin fees?
During this reporting period, the network collected approximately $90,199 in stablecoin-denominated fees. Rather than sending those stablecoins straight to governance, they were used to buy CELO at market prices once a day, and that CELO is what gets distributed to the Community Fund.
The full loop looks like this:
- Users pay fees in stablecoins.
- Stablecoin revenue is retained.
- An equivalent amount of CELO is purchased at market prices.
- That CELO is sent to the Community Fund.
The upshot: as network activity grows and more people transact in stablecoins, a portion of that activity creates ongoing, programmatic demand for CELO. Usage and value accrual, connected directly and transparently. No middlemen, no discretion, no fine print.
Operating Costs and Revshare Breakdown
Revenue to Distribution
| CELO | |
|---|---|
| Sequencer revenue — fees paid in CELO (sent directly) | 1,941,664 |
| Sequencer revenue — fees paid in stablecoins (~$90,199), converted to CELO at daily market price | 1,129,570 |
| Gross sequencer revenue | 3,071,234 |
| Less: operating costs & revenue share (below) | (504,464) |
| Net distributed to the Community Fund | 2,566,770 |
Operating Costs and Revshare Breakdown
| Item | CELO | ≈ USD | What it covers |
|---|---|---|---|
| L1 — batcher | 12,918 | $1,048 | Posting L2 transaction batches to Ethereum |
| L1 — proposer | 28,064 | $2,357 | Submitting L2 state roots to Ethereum |
| Data availability (EigenDA) | 10,642 | $894 | Off-chain data availability |
| Subtotal — L1 operating costs | 51,624 | $4,299 | |
| OP Stack / Superchain revenue share | 452,840 | $35,945 | 15% of profit, per CGP-287 |
| Total deductions | 504,464 | $40,244 |
Weekly Distributions
This first transfer covers everything accumulated since CGP-287 went into effect. Going forward, we intend to run this process weekly, so revenue flows to the Community Fund on a predictable cadence rather than in occasional lump sums.
Each weekly report will summarize:
- Sequencer revenue generated during the period
- Stablecoin fees collected
- Operating cost deductions
- CELO distributed to the Community Fund
Same numbers, same format, every week. The goal is a rhythm you can set your watch to, and a paper trail anyone can follow.
On the Question of Burning
As discussed in the original proposal, Celo Core Co. believes there’s a strong case for burning the CELO that’s been returned to the Community Fund.
But believing something and hardcoding it into the protocol are two very different things. A decision like this should be made through governance, in the open, by CELO holders.
So if you support a burn, here’s our invitation: submit a governance proposal. The Community Fund now has a sustainable mechanism for receiving sequencer revenue. Whether those funds are burned, reinvested, or allocated elsewhere is, and will remain, the community’s call.
Looking Ahead
The network earns. The community receives. Governance decides.
As adoption grows, sequencer revenue flows back to the community on a recurring basis. Stablecoin usage contributes to ongoing CELO buy pressure. And the economic benefits of network growth become more directly connected to CELO itself.
Thank you to everyone who participated in the discussion and helped shape this framework. The first weekly report is coming soon, and we look forward to sharing it with you.
Celo Core Co.
