Celo proposes allocating 160 million tokens worth 12 million USD to Opera browser

Opera, the well-known web browser company, and the Ethereum Layer 2 platform Celo are restructuring their long-term business partnership to strengthen their strategic alliance.

According to a plan subject to community approval, Celo intends to grant a one-time allocation of 160 million CELO tokens from its treasury to Opera. The value of this token package is approximately $12 million, representing 16% of the total maximum supply of CELO, making Opera one of the largest CELO holders and, in theory, elevating Opera’s role from a distribution partner to a long-term network stakeholder.

Celo is a mobile-focused blockchain designed for low-cost global transactions and has been paying quarterly grants in USD to Opera to expand the MiniPay ecosystem. In 2023, the Celo community approved a proposal to pay $568,182 worth of CELO tokens quarterly to Opera to support deployment within Opera’s Mini App ecosystem. This funding primarily targets joint marketing opportunities, user incentives, and related expenses, and is expected to conclude in the first quarter of this year.

In a new proposal presented on Thursday, Celo stated that over 60 million Opera browser users have received Mini App rewards and “can convert them to USD₮ via the MiniPay wallet,” a custom wallet provided by Celo.

“Since the launch of MiniPay, Opera and Celo have expanded this self-managed stablecoin wallet to over 66 countries, supporting more than 400 million transactions and serving over 14 million users,” Celo said, noting that MiniPay currently has more than 4.23 million weekly active USD₮ users.

Similar to the previous agreement, Opera and Celo will sign a three-year term, with a commitment that Opera will not sell tokens during this period. The grant will be transferred in a single payment to a Safe wallet controlled by Opera.

Funding for this transaction will come from Celo’s unissued treasury, effectively increasing the circulating supply of CELO. Data shows that approximately 597.6 million CELO tokens are currently in circulation. Celo also proposes to limit voting rights related to these issued tokens to 10% of the total CELO staked, aiming to “maintain governance balance” and prevent Opera from gaining excessive control.

If approved, the two companies will intensify efforts to expand MiniPay in Latin America and Southeast Asia, while continuing to fund the adoption and development of Mini Apps. The governance proposal does not specify the discussion period or a specific voting deadline.

Celo, an independent Layer 1 blockchain, completed its transition to an Ethereum Layer 2 network using OP Stack last year after approximately two years of development.