Celestia 'Proof of Governance' proposal: 20x lower inflation and no staking
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Summarizes a proposal to cut TIA inflation from ~5% to ~0.25%, eliminate staking with governance electing validators, and burn fees and MEV, making TIA its own LST. Argues PoS security is largely delegated and Celestia overpays for security by about 20x.
Key claims
Inflation drops from ~5% to ~0.25% annually
Fees and MEV burned instead of paid to stakers
Top dozen Ethereum entities control >67% of stake via delegation
Will "Proof of Governance" save $TIA?
Two weeks ago, @jadler0 dropped a proposal in the @celestia governance forum, that promises to reduce inflation by a factor of 20, add proper value accrual mechanisms, and turn $TIA into a native LST.
Let me give you a TL;DR on what this means:
➤ Inflation would drop from ~5% to ~0.25% annually, while validators receive the exact same payout they get today (currently 5% commission on 5% inflation = 0.25% of total supply)
➤ Staking gets completely eliminated, which means no more locking up tokens, no more delegation, no more unbonding periods. Governance directly elects the validator set through CIPs (Celestia Improvement Proposals)
➤ All transaction fees and MEV get burned instead of distributed to stakers, creating value accrual for every $TIA holder equally rather than just those who stake
➤ LSTs become obsolete overnight bc when there's no staking, the native $TIA token itself becomes the "liquid staking token" with full DeFi composability and zero smart contract risk
➤ Economic security in PoS is already a meme as validators don't own the stake they're "securing" the network with, it's all delegated. Real security comes from validators' reputation and future revenue streams being at risk, not from slashing someone else's money
➤ At 100% staking rate (where all PoS chains trend with LSTs), stakers already earn net 0% real yield since everyone gets diluted equally. Only validators capture value through commissions, this proposal just cuts out the unnecessary middle step
➤ This isn't purely theoretical, it's acknowledging how PoS actually works today. The top dozen entities on Ethereum control >67% of stake through delegation. Security comes from the threat of removing future validator revenue, not from slashing delegated funds
➤ Celestia is currently overpaying for security by ~20x. The proposal maintains identical validator economics while eliminating unnecessary token dilution and complexity in the system
➤ The endgame of LSTs was always going to be governance-controlled delegation anyway (see Lido's dual governance). This just skips the intermediate steps and goes straight to the efficient solution
What's your take here anon?
Adding this as well:
QUOTING @zerokn0wledge_
Celestia is great tech. Unfortunaely $TIA is one of the worst / most predatory VC tokens out there. Here is why ↓ First off, @celestia (the chain) is great tech. It was Celestia that first made cheap blobspace abundant, overcoming the main scaling bottleneck that rollups have s
Celestia is great tech. Unfortunaely $TIA is one of the worst / most predatory VC tokens out there. Here is why ↓ First off, @celestia (the chain) is great tech. It was Celestia that first made cheap blobspace abundant, overcoming the main scaling bottleneck that rollups have s
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