According to reports from Wu, Celestia co-founder John Adler proposed using Proof-of-Governance (PoG) as the ultimate solution for Liquid Staking Tokens (LSTs). Validators are determined through off-chain community voting, separating protocol security from the total extractable value (REV).
PoG can reduce the token issuance rate from 5% to 0.25%, maintaining network security. Even without delegated staking, LSTs will still be generated, with net issuance approaching zero at a 100% binding rate, only validators receive issuance. PoG eliminates the need for staking, and TIA tokens are equivalent to LSTs, simplifying protocol design.