Deep Dive
1. CLI Overhaul (Dec 2025)
Overview:
The celocli v7.0 update removed 15+ deprecated commands related to Celo's original L1 architecture, including validator status checks and BLS key management no longer relevant post-L2 migration.
Key technical shifts:
- Replaced Web3.js with viem in core functions (account management, governance voting)
- Added multicall support to validator RPC URL checks (60% faster queries)
- Pruned 23 unnecessary dependencies including web3-utils
What this means:
This is bullish for CELO because developers gain modern tooling that works seamlessly with Ethereum standards, while node operators benefit from leaner software. The removal of legacy code reduces potential attack surfaces. (Source)
2. Security Hardening (Nov 2025)
Overview:
November's beta releases phased out Azure Key Vault (AKV) support for transaction signing, moving towards decentralized key management solutions.
Notable changes:
- Added mandatory ledger address verification before first transaction
- Fixed critical L2 compatibility bug in admin-revoke function
- Introduced gas estimation improvements for CELO transfers
What this means:
This is neutral for CELO - while it improves security for institutional users, the AKV deprecation requires affected projects to migrate to alternative signing methods. The ledger verification change prevents accidental misdirected transactions.
3. Derivation Path Standardization (Oct 2025)
Overview:
The controversial shift to Ethereum-standard derivation paths (m/44'/60'/0') aimed to improve wallet compatibility, while maintaining legacy Celo path support via config flag.
Implementation details:
- New accounts default to ETH-compatible paths
- Added celocli config:set --derivationPath celoLegacy toggle
- Updated documentation for Ledger Nano S/X users
What this means:
This is bullish for CELO because it reduces friction for Ethereum developers building on Celo, while existing users can maintain existing account structures. The change particularly benefits projects using hardware wallets with multi-chain support.
Conclusion
Celo's recent code changes reflect strategic prioritization of Ethereum alignment and developer experience as it solidifies its L2 positioning. The CLI modernization and security upgrades create a foundation for more complex DeFi applications while maintaining backward compatibility.
How will these infrastructure improvements impact Celo's ability to attract Ethereum-native stablecoin projects in 2026?