Mezcal, A New Vision For Celo

@YazKhouryTest thanks for the proposal. And thank you for answering some of my questions at the CC after party! I still have a few lingering ones:

(1) if we were to move to Celestia, would the Celo Reserve lose its ability to enable the Tobin Tax and collect a portion of block rewards? Both of these are emergency mechanisms to bolster the reserve if it were to approach undercollateralization and should ideally be preserved or replaced with other cash flow levers.

(2) given that CELO is used to secure and govern the network (in addition to the celo reserve), I would imagine this proposal would significantly reduce the inherent value of celo (for the foreseeable future) if it were to pass. Consequently, this would be bad for the Reserve, given that CELO makes up ~50% of its holdings. Do you agree? If not, why?

(3) I agree with others that this proposal is a pretty significant change in direction for Celo—which is okay :slight_smile: but I ultimately see this as a decision between the following: do we believe that Celo stablecoins will scale faster as a layer 2 on Celestia or with Mysten Labs’ upcoming upgrade (eta end of year). Do you think this is an accurate distillation of the core decision we must make?

Would love to hear your thoughts on these questions. And perhaps you could get some of the other multisig signers to share their thoughts as well—I know there are many :slight_smile:

5 Likes