Celo's Buyback Engine Keeps Running @Celo has now repurchased approximately 9,100,000 $CELO tokens from the open market, with around 600,000 of those tokens bought back in the past week alone
@Celo has now repurchased approximately 9,100,000 $CELO tokens from the open market, with around 600,000 of those tokens bought back in the past week alone. The pace underscores just how much momentum the protocol has built since its tokenomics overhaul earlier this year.
The buybacks stem directly from the CELOccelerate proposal, which passed governance with over 97% community support in April, making it one of the most decisive votes in the network's history. Celo Core Co. framed the overhaul as a set of coordinated changes designed to turn network growth into CELO value, ensuring the protocol's economic model keeps pace with its adoption.
The mechanics are straightforward. All chain profits are directed to CELO holders by flowing into the DAO-governed Community Fund, and any revenue earned in assets outside of CELO, such as USDT or USDC, is programmatically used to buy back $CELO on the open market. In practice, this means 100% of net sequencer revenue and stablecoin gas fees are continuously converted into $CELO purchases for the Community Fund.
The first major ongoing distribution covered sequencer revenue paid in CELO as well as stablecoin fees converted at the daily market price, with Celo Core Co. committing to run the process weekly so revenue flows to the Community Fund on a predictable cadence.
The results have been notable beyond the buyback figures. Fee revenue climbed 280% over 90 days and 104% year-over-year according to DefiLlama data.The network has also positioned itself as the number one L2 by daily active users, with over 459,000 DAUs recorded, and the leading network for Tether USDT transactions, facilitating more than 25% of all USDT transactions across chains.
With buybacks compounding week over week and fee revenue continuing to climb, the CELOccelerate framework is increasingly looking like a model for how L2 protocols can tie token value directly to real network usage.
Sources:CELOccelerate Tokenomics Proposal, Celo Governance ForumInitiating Ongoing Celo Chain Revenue Transactions, Celo Governance ForumCelo Token Transparency Filing, Blockworks
