Celo plans to upgrade its token economic model and will solicit public opinions, proposing to introduce a buyback and burn mechanism.

According to Mars Finance, Rene, Chairman of the Celo Foundation, announced an upgrade to the CELO token economic model, considering the introduction of token buyback and burn mechanisms to improve the long-term economic architecture. He stated that with increasing network activity, the existing model needs to be redesigned to better accommodate the growing transaction fee demands. The upgrade process will proceed in four phases: first, a public consultation will be held on the Celo forum, followed by invitations to researchers, token economists, and ecosystem contributors over the next few weeks; then, research and modeling will be conducted; the third phase will involve community review; and finally, the upgrade will be completed through governance procedures. The entire process will be fast-paced, transparent, and community-driven, spearheaded by the Celo Foundation and cLabs.