Celo Blockchain Nears Decision on Ethereum Layer-2 Network Migration

According to CoinDesk, the Celo blockchain is nearing a decision on which layer-2 network to migrate to atop Ethereum. Developers have been evaluating technical proposals from major players in the blockchain industry, including Optimism, Polygon, zkSync, and Arbitrum. These companies are eager to share their technological blueprints with new chain builders to attract more critical mass to their mini-ecosystems and software offerings known as 'stacks.' Tim Moreton, CEO of cLabs, the leading developer behind Celo, stated that they are now moving to evaluate the non-technical dimensions described in the framework. The details of terms like revenue sharing can be crucial factors for builders of new layer-2 networks. Arbitrum, the largest layer-2 network in terms of total value locked (TVL), disclosed last week that users of its 'Expansion Program' must transfer 10% of the protocol net revenue to the Arbitrum Foundation under the terms of use. Moreton did not provide a specific timeline for when a final recommendation might be made, but said they are working as fast as possible to create a comprehensive proposal. Celo is currently ranked 26th based on the crucial metric of TVL, at $116 million, compared to Ethereum's $30.6 billion. However, the pursuit of Celo by major Ethereum layer-2 networks has taken on significant marketing importance, as they race to establish themselves as early leaders in the fast-moving space. Moreton emphasized that they are trying to find the best stack for Celo's needs, not necessarily the best stack overall. The various teams competing for Celo have been working hard to provide test networks, technical assistance, and access to top executives in their efforts to secure the partnership.