According to reports from Wu, Celestia co-founder John Adler proposed adopting Proof-of-Governance (PoG) as the ultimate solution for Liquid Staking Tokens (LSTs). Validator selection will be decided 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, and under a 100% binding rate, net issuance approaches zero, with only validators receiving issuance. PoG eliminates the need for staking, and TIA tokens are equivalent to LST, simplifying protocol design.