CLabs, Celo’s core developer, proposed migrating Celo from a standalone Ethereum-compatible Layer 1 blockchain to an Ethereum Layer 2 network in July 2023, initiating a nearly two-year process involving extensive planning, testing, governance discussions, and a community-driven hard fork completed in March 2025

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CLabs, the project's core developer, first proposed Celo's shift from Layer 1 to a Layer 2 chain in July 2023. The move aims to leverage Ethereum's security while preserving Celo's low-cost transactions and fast settlement times.

The official Celo countdown website confirmed the transition, announcing that Celo is now live as an Ethereum Layer 2. The move follows 20 months of planning, testing, and governance discussions since its initial proposal by cLabs in July 2023.

The network first proposed the migration two years ago, intending to enhance security, real-world Ethereum use cases, and developer experience.