Carbon Offsetting Fund
Introduction to the Carbon Offsetting fund, its purpose, and governance process.
As of block height 31,056,500 (March 26, 2025, 3:00 AM UTC), Celo is no longer a standalone Layer 1 blockchain—it is now an Ethereum Layer 2! Some documentation may be outdated as updates are in progress. If you encounter issues, please file a bug report.
For the most up-to-date information, refer to our Celo L2 documentation.
This status is based on the proposal "The Great Celo Halvening – Proposed Tokenomics in the Era of Celo L2".
What is the Carbon Offsetting Fund?
The Carbon Offsetting Fund provides for making the infrastructure of the Celo platform carbon-negative, by making a transfer every epoch to an organization that commits to using those assets off-chain for carbon offsetting projects.
Governance
Through the on-chain governance process, CELO holders can set the fraction of the total desired epoch rewards, initially planned to be 0.1%, that is received by the carbon offsetting fund, and the address of a carbon offsetting partner to which to direct these transfers. The on-target amount is adjusted by the epoch rewards multiplier, as with all epoch rewards.
Transaction Fee Allocation
- 10% of transaction fees support the carbon offset fund, supporting Celo’s environmental commitment.
- 90% of transaction fees are being directed toward funding key network operations, including:
- Data Availability
- Layer 1 Fees
- Sequencer and Batcher Operations
- Revenue sharing with the OP-Stack