This strategy is critical for establishing long-term value for TIA holders, ensuring effective token management and potential economic impact.
Key participants in Celestia have presented a PoG proposal to reduce TIA token issuance from 5% to 0.25%. This plan aims to effectively manage inflation and align rewards with network demands.
Key figures, such as co-founders and the Celestia Foundation, have actively participated in this proposal. The initiative is expected to significantly change Celestia's tokenomics, potentially enhancing the token's value proposition for its holders.
Immediate changes in staking and liquidity models are expected as investors reassess their strategies. The initiative aims to stimulate the market value of TIA by reducing inflation and promoting effective value accumulation.
As the reviews of the proposals unfold, the broader industry dynamics remain uncertain. However, the focus is on the direct implications for TIA and its market positioning.
Speculative outcomes regarding financial strategies suggest a change in staking behavior and possibly future technological iterations related to reduced token inflation. Past precedents, such as previous inflation rate reductions, bolster confidence in the feasibility of the proposal.
Quote from the Celestia team
"We propose Proof-of-Governance as a way to radically reduce issuance by 20 times, maintaining security and replacing the need for complex LSTs. Implementing this change will put Celestia on a path of more direct REV prioritization and value accumulation for TIA token holders." — Celestia Team, Celestia Foundation
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