The Founder of the Altcoin, Whose Price Has Plummeted by 93%, Presented a Proposal to Change Everything: Last Struggles or a Ray of Hope?

Among modular blockchain projects, Celestia (TIA) is in the spotlight due to the significant value loss it has experienced recently.

While TIA dropped by 93%, a striking change proposal was put forward within the community. John Adler, one of the co-founders of Celestia, proposed to completely eliminate the existing Proof of Stake (PoS) mechanism and replace it with a new and experimental system called Proof of Governance (PoG).

According to Adler's statement in the Celestia governance forum, the annual supply of the TIA coin can be reduced by 20 times with the PoG system. This means that the annual staking reward of approximately 127 million dollars will drop to just 4 million dollars. In the new system, token holders will be able to select network operators directly without needing to lock their tokens.

Adler argues that this structure will eliminate unnecessary complexities, reduce costs, and maintain network security as effectively as PoS. He also states that this system represents a more sustainable value production model aimed at directly increasing the revenues generated from the network's data accessibility services.

Celestia's current PoS system has been under criticism for a long time. The criticisms are particularly focused on the high staking rewards increasing TIA's inflation, thereby disrupting the economic balance of the network. Currently, Celestia distributes approximately 8% of the circulating coin supply as staking rewards each year. This creates an effect that reduces the value of the circulating coins.

Additionally, some investors, especially large funds and early-stage investors, are seen as factors that undermine trust in the project by staking their locked investments to earn rewards and selling those rewards in the market.

Adler argues that staking is a system that punishes those who do not stake coins and that it actually creates an economically unnecessary step in the process of determining the operators of the network.

In the new PoG model:

• Staking and staking rewards will be completely removed.
• Network operators will be rewarded only for good performance, and punitive measures like slashing will become unnecessary.
• The threat of operators being deposed by token holders will be the most important factor in ensuring the security of the system.
• Governance votes will be conducted off-chain (offchain) since the Celestia chain does not support such votes.

Although some blockchain enthusiasts have criticized off-chain systems, Adler says that this is no different from on-chain systems in terms of security, and that Celestia already has a similar offchain management infrastructure.

Adler's proposal has received positive reactions in the community so far. Discussions are ongoing, but this move could signify a profound transformation in Celestia's value production model.

*This is not investment advice.

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