# Proof-of-Deposit – initial proposal and request for feedback **URL:** \ **Category:** Governance\ **Created:** [March 10, 2022, 4:45pm UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041 "2022-03-10T16:45:12Z")\ **Posts on this page:** 5\ **Page:** 7
**Author:** ![ying\_chan](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/ying_chan/32/6757_2.png) [@ying\_chan](https://forum.celo.org/u/ying_chan)\ **Post date:** [May 10, 2022, 11:52am UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041/128 "2022-05-10T11:52:47Z")
The power of a picture 😀 Big thanks to @Pinotio.com for suggesting we make one Let’s discuss your other points on the governance call this Thursday (I assume you’ll be there for the CCF discussion?). These may be potentially be scenarios that we analyse, although models are only as good as their underlying assumptions. Some loose thoughts: if demand for cStables rises, and demand of CELO rises in response, it seems logical to me that the demand will be met by circulating supply of CELO first, and locked CELO second, rather than expect significant behaviour change. Currently theres at least 100M CELO in active circulation to absorb demand, and will also rise in value as demand for CELO rises. I also note that as we move to Mento v2, Celo will be closer to the MakerDAO model where collateral providers can dynamically expand/contract cStable supply based on a fixed amount of CELO. ---
**Author:** ![markbarendt](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/markbarendt/32/6778_2.png) [@markbarendt](https://forum.celo.org/u/markbarendt)\ **Post date:** [May 15, 2022, 10:42pm UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041/129 "2022-05-15T22:42:47Z")
Need people to check my math on this proposal please. [Discord](https://discord.com/channels/600834479145353243/704805825373274134/975526824199213096) Link back to discord didn’t work for me, see Celo’s discord in Governance\>Governance Proposals > I do understand what it is attempting to be. In my own banking, my savings account gets maybe 12 transactions a year, most inbound. My concern remains, the incentive PoD proposes, is to HODL not spend. Until the currency reaches a significant velocity PoD will be slowly draining the reserve. What transaction volume would it take per stable coin to keep the lights on at Celo with PoD in place? > > Wow, just did some rough math on this, for the current 65million CUSD alone the cost to the protocol to pay the estimated 5% interest would be $3,250,000/year and that would be essentially a fixed cost of doing business. At a transaction cost of $0.001 it would take 3,250,000,000 transactions to cover just the cost of Proof of Deposit alone. Add the rest of the cost of running Celo… > How in the world do you expect Celo to pay that bill? > On an ongoing basis and forever? ---
**Author:** ![markbarendt](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/markbarendt/32/6778_2.png) [@markbarendt](https://forum.celo.org/u/markbarendt)\ **Post date:** [May 22, 2022, 4:46pm UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041/131 "2022-05-22T16:46:00Z")
Looks like the EU is seriously considering making interest bearing crypto currencies illegal. [![](https://us1.discourse-cdn.com/flex020/uploads/celo/original/2X/3/3654302ab11dcae3fbc09cf4bd46c9dd30b5d3a9.jpeg "Europe's Crypto Crackdown!! What It Means FOR YOU!! 🇪🇺") ](https://www.youtube.com/watch?v=UUivXWUoQCY) ---
**Author:** ![markbarendt](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/markbarendt/32/6778_2.png) [@markbarendt](https://forum.celo.org/u/markbarendt)\ **Post date:** [May 24, 2022, 3:04pm UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041/132 "2022-05-24T15:04:54Z")
Research on to competition… [http://surveys.kraken.com/jfe/form/SV\_3CdoE5uNxeBnFIO?Q\_CHL=social&QSocialSource=twitter](http://surveys.kraken.com/jfe/form/SV_3CdoE5uNxeBnFIO?Q_CHL=social&QSocialSource=twitter) Took the survey. I like doing that kind of thing to see what questions they ask, it helps me get a sense of what market they are looking at and how they might market that product. Has any research been done along these lines for Proof of Deposit? ---
**Author:** ![John.Fletcher](https://sea2.discourse-cdn.com/flex020/user_avatar/forum.celo.org/john.fletcher/32/6792_2.png) [@John.Fletcher](https://forum.celo.org/u/John.Fletcher)\ **Post date:** [May 31, 2022, 3:23pm UTC](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041/133 "2022-05-31T15:23:51Z")
Dear All, We have started a new thread on Proof of Deposit [here](https://forum.celo.org/t/proof-of-deposit-summary-and-faqs/3699), (as this one has become too long!) [Previous page](https://forum.celo.org/t/proof-of-deposit-initial-proposal-and-request-for-feedback/3041.md?page=6)