Validators process transactions and receive fees from users (supply-side fees).

Celo is a smart contract platform for decentralized applications (a blockchain). Celo was founded by Rene Reinsberg and Marek Olszewski and launched in 2020.

CELO holders own and govern the protocol. They currently take a cut of the total transaction fees paid by users (revenue). Celo's investors include a16z, Greenfield, Electric Capital, etc.

governance

github

twitter

discord

etherscan

website

Blockchains (L2)

Celo

# Celo Token incentives Methodology

## 1. Overview

The Celo L1 (legacy) token incentives metric measures the total daily USD value of rewards distributed through Celo L1 (legacy)'s consensus mechanism to network participants. This includes both voter rewards (distributed to users who participate in validator elections) and validator rewards (compensation for validators and validator groups for block production and validation services). The metric answers the business question: "How much is Celo L1 (legacy) spending daily on network security and governance incentives?"

## 2. Data sources

- **Celo L1 (legacy) Election contract events**: Parsed `EpochRewardsDistributedToVoters` events from the Celo L1 (legacy) Election contract that track rewards paid to voters who participate in validator elections
- **Celo L1 (legacy) Validators contract events**: Parsed `ValidatorEpochPaymentDistributed` events from the Celo L1 (legacy) Validators contract that track payments to validators and validator groups
- **End-of-day price feeds**: Token price data for both Celo L1 (legacy) (Celo L1 (legacy)) and Celo L1 (legacy) Dollar (cUSD) tokens used for USD conversion
- **Token metadata**: Decimal precision information for proper token amount normalization

## 3. Step-by-step calculation

### Component A: Voter rewards extraction
- **Purpose**: Captures rewards distributed to users who vote in Celo L1 (legacy)'s validator elections
- **Logic**: Extracts data from Celo L1 (legacy) Election contract `EpochRewardsDistributedToVoters` events. Each event represents a reward distribution to voters at the end of an epoch. The `value` field contains the reward amount in native Celo L1 (legacy) tokens. Events are filtered to exclude data after March 26, 2025. The hardcoded Celo L1 (legacy) token address `0x471ece3750da237f93b8e339c536989b8978a438` is assigned to all records.
- **Key fields**: `value` (reward amount), `block_timestamp` (when reward was distributed), transaction and log metadata for traceability

### Component B: Validator rewards extraction  
- **Purpose**: Captures compensation paid to validators and validator groups for block production services
- **Logic**: Extracts data from Celo L1 (legacy) Validators contract `ValidatorEpochPaymentDistributed` events. Each event contains two payment components that are summed together: `validatorPayment` (direct compensation to the validator) and `groupPayment` (compensation to the validator group). The combined amount represents total validator compensation in Celo L1 (legacy) Dollar tokens. Same temporal filtering applies (before March 26, 2025). The hardcoded Celo L1 (legacy) Dollar address `0x765de816845861e75a25fca122bb6898b8b1282a` is assigned to all records.
- **Key fields**: `validatorPayment` and `groupPayment` (summed for total amount), `block_timestamp`, transaction and log metadata

### Final aggregation
- **Combining components**: Both reward streams are combined using a union operation, with each maintaining distinct categorization through `contract_name` and `account_name` fields ("Voter rewards" vs "Validator rewards")
- **Currency conversion**: Token amounts are converted to USD using end-of-day price feeds for the respective tokens (Celo L1 (legacy) for voter rewards, Celo L1 (legacy) Dollar for validator rewards). Decimal precision is corrected based on each token's metadata specifications.
- **Time aggregation**: Block timestamps are truncated to daily boundaries, and rewards are summed by day, creating a daily time series of total incentive spending
- **Final calculation**: The final metric value equals the sum of all USD-converted voter rewards plus all USD-converted validator rewards for each day, with any missing days filled with zero values to maintain a complete time series

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens distributed as incentives.

CeloCELO

Token incentives

Token incentives

Competitive landscape

Chain breakdown