The Dutch public auction raised tens of millions of dollars, and "Celo", known as Libra's number one enemy, finally came
Following the completion of a $30 million financing led by a16z crypto and Polychain in April last year, Celo's ICO on Coinlist once again achieved excellent results.
Celo has always been regarded as the number one enemy of Libra. While Libra is constantly catering to the regulation and changing its own strategy, Celo has gone smoothly to the token sale and mainnet launch. At the same time, Celo also "poached" the support of many former members of the Libra Alliance, such as Libra Association member Silicon Valley venture capital giant Andreessen Horowitz, the largest digital currency compliance exchange Coinbase, Bison Trails, Anchorage, etc. are now Celo's prosperity Alliance member.
Now, Celo is about to launch the main network and accept the test of the market. Why does this project compare with Libra, which has 2.7 billion users? What are the ingenious designs of Celo? Odaily brings you a detailed interpretation.
Celo reproduces 10 million US dollars 1CO, and the circulation is expected to be 200 million pieces within the year
The 12-hour bidding auction ended. Celo completed the first Dutch auction of its token Celo Gold (cGLD) through Coinlist on May 12, raising a total of 10 million US dollars. The starting price of each cGLD was 12 US dollars, and the final settlement price was 1 US dollar .
(Information of the shooting in the Netherlands, the picture comes from: coinlist)
textthrough, some 509 investors from dozens of countries participated in the auction, most of them from Germany and the UK.
Celo is actually a dual-token system. In addition to the native governance token of the Celo platform, Celo Gold (cGLD), Celo also plans to issue another token, Celo Dollar (cUSD).
Celo Gold (cGLD) is a token whose price will fluctuate. Although it has gold in its name, it has nothing to do with gold. The main purpose is Celo platform governance, such as running verification nodes, voting for verification nodes, on-chain governance, etc.
Celo Dollar (cUSD) is a stablecoin pegged to the U.S. dollar. According to the design plan of the official website, the initial excess collateral reserve of cUSD will include cGLD and other liquid cryptocurrencies such as BTC and ETH.
When the demand for stablecoins such as Celo Dollar increases, the Celo protocol will issue additional stablecoins. However, the additional issuance of stable coins also requires Celo officials to increase their reserves of Celo Gold. Once the stable currency is issued, Celo will increase its holdings of Celo Gold. Once the demand for stablecoins decreases, the circulation can be reduced by repurchasing stablecoins with cGLD. In other words, the circulation of cGLD and the circulation of stablecoins change inversely.
textCelo Gold (cGLD) is the protagonist of this Dutch auction. according to, Celo will auction a total of 3% of the total amount of cGLD on Coinlist, which is about 30 million. However, the number of cGLDs involved in this first auction was only 13.5 million, of which 10 million were used for direct auction sales, and the other 3.5 million were "buy 2 get 1 free" promotional money and investors' "bringing new ones with old ones". " bonus.
"Buy 2 get 1 free" means that investors will receive 1 cGLD for every 2 purchases. According to the order of bidding from high to low, only the first 1000 investors with higher bids can be eligible for "buy 2 get 1 free" .
"Bringing the old with the new" means that investors make profits through the invitation. If the invitee successfully participates in the Dutch auction, the inviter can earn 50 cGLD, and the upper limit for each person is 500 cGLD.
According to official information, the total supply of cGLD is 1 billion, and the circulation of cGLD in the first year is expected to be around 200 million. The cGLD lockup period in this auction is 60 days, and will be gradually unlocked within 12 months: the first 10% of the coins will be transferred to the investor account after 60 days, and 10% of the locked coins will be unlocked every 30 days. cGLD can also participate in governance.
Possibly the next global payment solution, Celo is Libra's biggest competitor
Celo is seen as Libra's biggest competitor because both are telling stories about inclusive finance.
(picture from:Celo Slides）
Libra's vision is "to build a simple global payment system and financial infrastructure that empowers billions of people". Celo's vision is "to build a financial system that creates the conditions for prosperity for everyone", while also "hoping that financial tools will be more accessible to users who use smartphones but do not have bank accounts."
Celo dollar, like Libra, is a stable currency anchored by the US dollar, and its functions are inseparable from scenarios such as transfer and remittance, cross-border payment, and digital wallets.
Despite telling the same story, Celo and Libra have many differences.
First of all, in terms of network construction, Libra adopts a permissioned alliance chain method, while Celo is a permissionless PoS public chain. Secondly, Celo is mainly aimed at non-bank users who use smartphones, and the lightweight identity protocol is the biggest feature that distinguishes it from Libra.
textCelo's lightweight identity protocol (phone number PKI) can map the public key and the hash value of the mobile phone number, which indirectly generates Celo's biggest selling point——, making it easy for anyone with a mobile phone to send and receive digital currency to anyone around the world.
At least in terms of the fact that the chain circle has emphasized the reduction of user thresholds for many years, Celo has done a good job. It not only simplifies the operation method, but also eliminates some transaction barriers.
Celo also supports the payment of transaction fees in stablecoins. Currently, most platforms use governance tokens or platform coins to pay transaction fees. Celo's method further simplifies the user experience.
According to the official statement, Celo is also different from other blockchain projects. In Celo, ordinary smartphones can act as nodes in the Celo network. Celo achieves this function through the fast synchronization of the ultra-light client, which makes the block header of the block optimized for the fast synchronization of mobile phones, making Celo 17000 times lighter than other blockchains, and this function is still being optimized.
Celo co-founder Rene Reinsberg mentioned in an AMA that Celo is so focused on mobile. In their view, few projects can do well on cheap mobile applications, so Celo adopted a mobile-first strategy.
Celo also operates efficiently on the online speed. On April 22, Celo's validator community selected the first candidate mainnet RC1, and the expected launch time of the mainnet is May 13. Celo's wallet, Celo Wallet, is currently available on iOS and Android.
If Facebook lets Libra bring its own 2.7 billion users, then Celo's plan focuses on digging more valuable alliance members.
Unlike the $10 million investment required by Libra, there is almost no financial threshold to become a member of the Celo Alliance for Prosperity — anyone can apply to join the network.
When the Libra plan was blocked, Celo won the support of many former members of the Libra Alliance, such as Libra Association member Silicon Valley venture capital giant Andreessen Horowitz, the largest digital currency compliance exchange Coinbase, Bison Trails, Anchorage, etc. are now defected Celo Alliance for Prosperity.
In addition to payment and remittance, the possibility of Celo also has DeFi
Not only does Libra "hack" Libra from multiple dimensions such as online speed and low threshold, Celo at least allows people to see the possible embryonic form of cryptocurrency transforming global payments.
Rene Reinsberg has shown some use cases to Celo users: In Brazil, an organization is developing a solution on Celo that allows Brazilians to earn money by performing tasks, sharing contact information, answering surveys, or providing product feedback; An easy, faster and cheaper way to send money to help Filipinos working overseas send money to family back home.
However, after seeing the huge growth in the field of decentralized finance and open finance in 2020, the Celo team has also begun to set its sights on DeFi. Rene Reinsberg also previously stated that Celo is currently very interested in DeFi use cases. Celo's goal is to provide the best infrastructure for applications in the financial field, not only supporting existing DeFi, but also supporting DeFi that may appear in the future.
Celo hopes to provide DeFi products for mobile phone users. However, the DeFi ecosystem is currently concentrated on Ethereum. Rene Reinsberg believes that the advantage of Celo for developers to choose the DeFi public chain is that Celo can make the apps it develops available to mobile phone users. DeFi products currently limited to computers limit the application of some good DeFi products. In addition, Celo released the SDK in February 2020, which simplifies the development of dApps through ContractKit and DAppKit.
References:
References:
Co-founder of the Celo project: Celo is a permissionless fast PoS network with a lightweight identity protocol and stability protocolhttps://www.odaily.com/post/5149706
Odaily Frontline｜Why do members of the Libra Association choose to join the Celo Prosperity Alliance?https://www.odaily.com/post/5147338
Celo is said to be a potential competitor of Libra?https://www.odaily.com/post/5147480
