With Its Price Plummeting by 93%, the Founder of an Altcoin Has Proposed a Radical Change: Final Desperate Efforts or a Glimmer of Hope?
The post With Its Price Plummeting by 93%, the Founder of an Altcoin Has Proposed a Radical Change: Final Desperate Efforts or a Glimmer of Hope? appeared on BitcoinEthereumNews.com.
Celestia (TIA), which draws attention among modular blockchain projects, has been on the agenda with its recent major loss in value. As TIA dropped by 93%, a dramatic change proposal emerged within the community. Celestia co-founder John Adler proposed removing the current Proof of Stake (PoS) mechanism entirely and replacing it with a new and experimental Proof of Governance (PoG) system. According to Adler’s statement on the Celestia governance forum, with the PoG system, the annual supply of the TIA coin will be reduced by 20 times. This means that the annual staking reward of approximately $ 127 million will be reduced to only $ 4 million. In the new system, token holders will be able to choose network operators directly without having to lock their tokens. Adler argues that this structure would eliminate unnecessary complexity, reduce costs, and maintain network security as effectively as PoS, and that it is a more sustainable value creation model that directly increases the network’s revenues from data accessibility services. Celestia’s current PoS system has long been criticized, with criticism centering on the idea that high staking rewards are disrupting the economic balance of the network by increasing TIA’s inflation. Currently, Celestia distributes approximately 8% of its circulating coin supply as staking rewards each year, which has the effect of reducing the value of coins in circulation. In addition, some investors, especially large funds and early-stage investors, earn rewards by staking their locked investments and selling these rewards on the market, which is seen as one of the factors that undermine trust in the project. Adler argues that staking is simply a system that penalizes those who do not stake coins and actually creates an economically unnecessary step in the process of determining the operators of the network. In the new PoG model: Staking…
Filed under: News - @ June 24, 2025 1:23 am