CLabs has announced its intention to transition the Celo blockchain from its current independent EVM-compatible Layer 1 blockchain network to a Layer 2 solution within the Ethereum ecosystem.
According to CLabs, this transition will enable Celo developers to leverage the wide range of Ethereum tooling and libraries available to them. The move will simplify the integration of Ethereum tooling and libraries for Celo developers and eliminate the need for extensive monitoring of upgrades.
1/
After months of research & initial discussions with Celo & Ethereum community members, @cLabs proposed a major upgrade yesterday for Celo to migrate from an EVM-compatible L1 → an Ethereum L2, initially leveraging OP Stack, w/ key differentiators:
— Celo ???? ???? (@CeloOrg) July 16, 2023
The CLabs team noted the implementation of the Layer 2 proposals offers several advantages. These include increased Cross-Community Collaboration, Enhanced Compatibility, Increased Security, and Maintained Low Gas Fees. The team noted that they expect no “material changes in gas fees.”
The key features of the proposed Layer 2 solution include a decentralized sequencer operating with Celo’s established validator set, off-chain data availability powered by EigenLayer and EigenDA, protected by re-staked Ether (ETH), and a design that maintains Celo’s 1-block finality.
CLabs proposed system
The main distinctions between Layer 1 and Layer 2 blockchains lie in their intended purposes, as well as their respective designs and architectures. While Layer 1 networks are constructed to function independently, Layer 2 solutions are specifically designed to optimize the performance of Layer 1 blockchains, rather than functioning as standalone entities.
CLabs has proposed the adoption of OP Stack as the architectural framework for the transition to ensure a seamless experience for end-users while maintaining CELO token holders’ governance authority over core contracts. CELO tokens will continue to be used for paying transaction fees.
According to the proposal, the governance call is scheduled to be held on Friday, July 21 at 8 am PDT / 5 pm CEDT.
Also Read: Circle Launch USDCKit Simplified USDC Payment Integration
Celo completed the move in 2025
In March 2025, Celo officially migrated from an independent L1 to an Ethereum L2 built with the OP Stack and EigenDA, ending more than 20 months of development and ecosystem coordination. The move allowed Celo to retain its existing state and user experience while gaining a closer connection to Ethereum’s security and developer ecosystem.
Celo’s L2 architecture also introduced a native bridge connecting the network with Ethereum. CELO now exists in both L1 and L2 forms, while users can bridge assets between the two networks through the OP Stack-based bridge.
2026 has been bout upgrading the new L2
With the migration completed, cLabs’ 2026 roadmap has moved from the question of whether Celo should become an Ethereum L2 to improving how that L2 operates.
The first half of the 2026 roadmap included the Jovian upgrade, further alignment with the evolving OP Stack, improvements to gas pricing, and work toward faster transaction confirmations. cLabs also planned to prepare Celo for future Ethereum and OP Stack upgrades, including Fusaka.
The Jovian hardfork went live on Celo mainnet on March 31, 2026. It brought Celo closer to the latest OP Stack architecture, including changes to gas accounting and the network’s minimum base-fee mechanism.
cLabs is also exploring faster confirmation infrastructure with Espresso. Its 2026 roadmap outlines plans for pre-confirmations that could provide users with an early finality signal within seconds while preserving the existing Celo architecture.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
