Cello is a mobile-centric smart contract platform compatible with Ethereum’s virtual machine. Voting On the proposal to increase the minimum gas threshold of the network.
Voting for SALO Governance Proposal 0066 began today, Wednesday, January 18th and ends on Friday, January 27th. As of the time of writing, voting is 2.6% of the total supply, with 6,840,826 CELO votes locked in.
Out of which 6,840,116 CELOs supported the proposal, 620 CELOs opposed the idea and 90 CELOs voted in favor of the boycott. CELO is the native currency of the Celo proof-of-stake smart contract platform based on the PBFT consensus mechanism.
Cello Governance Proposal 0066
The proposal seeks to raise the minimum gas threshold for a simple ERC-20 transaction to $0.001. Unlike Ethereum, where gas fees must be paid in ETH only, in Celo, users can pay using ERC-20 currencies, not just CELO. Gas charges are paid to prevent Denial of Service (DDoS) attacks.
Like Ethereum, Celo adopts offerings under a gas fee structure EIP-1559. As stated in EIP-1559, there must be a minimum gas price that applies to all Celo transactions. This minimum fee applies regardless of the validator processing the transaction. It also fluctuates according to demand. Celo has clarified that if the proposal is passed, only the base fee will be affected.
Under Celo Governance Proposal 0066, certification awards from gas fees would not be affected. Cello added that while base fees may increase slightly, network activity will remain the same because “gas prices are very low, transactions are almost free.”
Celo will benefit
Proponents justify this proposal by saying that transaction costs for the broader cell ecosystem carry additional dimensions beyond gas costs. As with other chains, all transactions posted on the network must be processed and stored immutably on the blockchain.
The current gas structure, the proponent said, does not affect processing or the general condition of the network. However, it can have serious effects in the long run. Changing gas tariffs would add benefits to the ecosystem, resulting in a higher marginal benefit. Consequently, they argue that this will warrant the long-term costs of the overall ecosystem.
Apart from increasing minimum benefits, the proposal will shield the network against spam attacks. By increasing the minimum gas charge threshold, any spamming activity will become more expensive.
The proposal reads:
“Network Stability and Security 1 Low gas prices allow actors to spam the network at any cost. Currently, to stop this attack, it will take time until the minimum gas threshold is increased enough. Raising the minimum gas threshold would make such an attack very expensive, even if it is short-lived. Makes sure.”
CELO is trading at $0.682 at the time of writing on January 25, 2023.
CELO Prices on January 25 | Source: CELOUSDT on TradingView
Feature image from Canva, chart from TradingView