Celo (CELO)

Celo’s native token, CELO, is used for staking and participating in on-chain governance.

The baseline reward estimate is about 6% annually. This baseline reward amount for stakers will decrease when more of the CELO supply is staked, and decrease when less of the supply is staked. If the validator group you vote for has perfect performance, you can expect to earn 100% of your rewards. If members of your validator group experience downtime, you will earn fewer rewards. This amount will decrease rapidly the longer that validator members are offline. Delegators are directly compensated by the protocol. Validators do not have a commission. This also means that delegators do no have tokens taken away from them when validators are slashed.

Delegators need to lock your tokens into a smart contract before you can vote for a validator group. After submitting the transaction to lock your tokens, there is a 24 hour period (one epoch) before you can vote. There is a 3-day unlocking period before you can transfer the amount back to your wallet.

Rewards are automatically added to staked CELO, so your rewards will automatically compound without having to do anything. However, that means that rewards must be unlocked in order to be liquid (ie. tradable).

If you’re staking CELO, you’ll be rewarded in CELO about once per day (epoch). The rewards automatically get compounded (restaked) unless the you decide to unlock a portion or all of your staked amount. Validators get rewarded in Celo Dollar tokens (cUSD) once per epoch (roughly each day, initially). Validator group owners can take a commission of these rewards.

Stakers are not exposed to slashing, only validators and validator group owners can be slashed.

The target curve of remaining epoch rewards declines linearly over 15 years of 50%, and then will decay exponentially. Actual rewards paid out at the end of an epoch is the multiplication of the on-target rewards with a rewards multiplier. This factor mointors the remaining epoch rewards and the target epoch rewards to ensure that the target release schedule is achieved.

Figment has partnerships with a number of top-in-class custodians. Please contact sales@figment.io for more inquiries.

Celo uses on-chain governance where one token represents one vote. This means that any use with locked CELO can particiate in the process. Delegators can vote on Celo terminal, the native interface for transacting on Celo or by going to celo.staked.id. Discussions on governance proposals happen on the forum before being introduced on-chain.

The 30% of tokens at launch were set aside for staking rewards and delegators will continue to earn inflationary rewards until 2050. After this date, the rewards will be created from transaction fees on the network. Depending on the adoption rate of this network, rewards will vary.