Celo Launches Dango Layer-2 Testnet, Takes Initial Step into Ethereum Ecosystem

Celo, the first mobile-first layer-1 blockchain, has successfully launched the Dango testnet. This Layer-2 initiative, conceived last year, marks a significant step for Celo's deeper integration into the Ethereum ecosystem.

The decision to implement a Layer-2 solution was put to a community vote in July 2023. After eight months of deliberation, Celo opted to build its Layer-2 using the Optimism Stack toolkit, following in the footsteps of Base, Zora, Mode, and other Layer-2 solutions.

By joining Optimism's Superchain ecosystem, Dango not only preserves the benefits of Celo's layer-1 but also inherits a scalable and highly interactive blockchain framework.

Currently, users can continue using stablecoins like USDT and USDC to pay gas fees on the new network, and asset bridging between Ethereum and Celo will soon become more seamless. Transactions on Celo are expected to be faster, with throughput increasing by 50% and block processing time reduced from 5 seconds to just 2 seconds, according to the announcement.

"For most EVM-compatible chains, maintaining dominance is increasingly challenging, as Ethereum makes significant strides in network scalability and improvement." - Marek Olszewski, Core Developer at Celo cLabs, previously shared with The Block last year.

The new testnet sets the stage for Celo's planned mainnet launch of Dango, scheduled for early winter 2024. Celo Foundation and cLabs are committed to fostering innovation and enhancing the blockchain ecosystem, ensuring seamless transitions and robust growth for developers and users alike.

However, the news did not positively impact CELO's price. Over the past 24 hours, the token has dropped more than 6%, trading around $0.47 per token, mirroring market-wide trends.