John Adler, co-founder of Celestia, proposes replacing Proof of Stake (PoS) with Proof of Governance (PoG) to reduce TIA token inflation, which has decreased by 93% from its peak. With TIA priced at ~$4.72 (CoinMarketCap, 06/24/2025), this move aims to improve the token economy.
Proof of Governance proposal
Adler proposes PoG, allowing holders $TIA to vote for blockchain operators without staking. PoG will:
Reduce inflation: From 8% supply ($127 million) down to 0.25% ($4 million) per year.
Remove staking: Create a fair system, eliminate liquid staking tokens.
Maintain security: Operators are rewarded and can be removed through voting.
PoG operates off-chain, causing controversy with on-chain supporters. Adler asserts PoG is safe, with positive community feedback.
Market context
Celestia, a modular blockchain, has not met expectations for data services. TIA inflation from staking rewards (8%) and selling rewards from funds like Polychain Capital puts price pressure. Ethereum faces similar issues. Policies like the GENIUS Act provide support, but Middle Eastern tensions (Bitcoin down 5.6%) pose risks.
Impact on the crypto market
Improve TIA price: Reducing inflation could attract investors, compete with Solana (TVL $9.8 billion).
Innovate consensus: PoG could inspire other blockchains.
Deployment risk: Transitioning to PoG requires consensus, which could cause disruption.
Legal risks (CLARITY Act hard to pass) and price volatility are challenges.
Suggestions for investors
Monitor TIA: Potential recovery if PoG is successful.
Modular blockchain investments: Notable Celestia, Polkadot ($DOT $4.50).
Choose Solana, Ethereum: Solana ($145), $ETH ($2,491) is safer.
Caution on risks: Monitor the GENIUS Act and geopolitical issues.
Risk warning: Crypto investments pose high risks due to price volatility.