Celo has a maximum supply of 1 billion tokens and has become a deflationary currency after introducing a buyback and burn mechanism. 1. Fixed Total Supply: The maximum supply of CELO is determined to be 1 billion tokens based on rigorous economic model calculations. Tokens will be gradually released into circulation through early contributor allocations, developer funds, community rewards, and foundation reserves, rather than being released into the market all at once. This balances the interests of all parties in the ecosystem and ensures the stable development of the network. As of December 2025, its circulating supply was approximately 589 million tokens, with a circulation rate of nearly 59%. 2. Dynamic Inflation Mechanism: In its early stages, CELO did not have a strictly linear decreasing inflation rule. Its circulating supply was dynamically adjusted by the protocol—when the price of CELO was lower than the pegged value, the system would issue more tokens to stimulate demand; when it was higher than the pegged value, some tokens would be burned to suppress inflation. In December 2025, the Celo Foundation proposed upgrading the token economic model, planning to introduce a buyback and burn mechanism to adapt to the increasing demand for transaction fees. The subsequent inflation logic will be determined through community governance, further moving away from the fixed linear decreasing model.