Celestia proposes to shift to PoG mechanism as the Crisis of Confidence in the community intensifies.

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Celestia is facing a Crisis of Confidence in the community, and the PoG proposal has sparked controversy.

The Celestia network has recently fallen into a Crisis of Confidence within the community. Against the backdrop of continuous price declines and a gradually marginalized narrative, network revenue is sluggish, and the feasibility of the DA track is being questioned. At this time, co-founder John Adler proposed a disruptive governance proposal.

Adler suggests that the network completely abandon the current Proof of Stake (PoS) mechanism in favor of a "Proof of Governance" (PoG) model. This proposal has sparked heated discussions in the crypto community, directly addressing the core concept of blockchain governance structures.

If the proposal is adopted, the Celestia network will undergo a series of structural reconstructions:

  1. The issuance of TIA tokens will be reduced by about 20 times, compressing circulation inflation, with a reduction ratio of up to 95%.
  2. Abolish the existing delegated staking and liquid staking contracts, and terminate the on-chain governance mechanism.
  3. All newly issued TIA will be paid to validators as off-chain incentives for running nodes.
  4. Validators decide through off-chain governance mechanisms, no longer relying on token voting.
  5. Implement a fee burning mechanism to reward token holders, with approximately $100 to $300 of protocol revenue used to support TIA value.

Adler even suggested completely removing the concept of "staking." He believes that without token issuance rewards and not relying on staking votes to select validators, the act of "staking" becomes redundant, LST also loses its basis for existence, and TIA itself becomes a direct vehicle for value capture.

This proposal aims to address the long-term downward inflationary pressure on TIA prices by constructing a more scarce and compact token economic model to inject foundational logic into the long-term value of the network. However, it also challenges several assumptions that are taken for granted in the mainstream consensus of Ethereum, such as whether the economic security of the blockchain truly relies on punitive mechanisms, whether PoS is actually a variant of a permissioned "Proof of Authority" mechanism, and whether blockchain systems can operate sustainably through a "no governance profit model."

Pledge Revolution or Shipping Cover? Celestia's PoG Proposal and the Billion Yuan Cash-out Doubts

However, just as this governance proposal aimed at "rebuilding the token economic foundation" has yet to be implemented, the community has continuously exposed the Celestia team's substantial cash-out behaviors, leading to divergent interpretations of the proposal's original intent. On one hand, the project party emphasizes that the PoG model is expected to curb inflation, repair the token model, and restore market confidence; on the other hand, on-chain data shows that multiple core team members swiftly completed large cash-outs after the unlocking window opened, with a cumulative cash-out exceeding 100 million dollars, raising market skepticism.

Community users accuse the Celestia core team of serious opacity in multiple areas such as token unlocking, fund operations, and market promotion. It has been disclosed that Celestia executives completed the unlocking of TIA tokens as early as early October 2024, followed closely by the unlocking of team members. Several key figures have been reported to have realized significant cash-outs through over-the-counter trading or resource exchanges.

Pledge Revolution or Exit Cover? Celestia's PoG Proposal and the 100 Million Cash-Out Suspicion

In addition, Celestia has been accused of paying large sums to well-known institutions in exchange for "severing" cooperative relationships with competitors, and of paying media personnel to maintain a positive image of the project. These actions have been labeled as typical operations of "paid promotion."

Although Celestia's current valuation is marked by external parties at 3.5 billion USD, its actual revenue falls far short of supporting such inflated valuations. Public data shows that Celestia's average daily protocol revenue is less than one hundred dollars, with an annual potential of only around 5 million USD. Industry insiders point out that Celestia's market pricing resembles a premium advance for "future narratives" rather than being based on existing usage data or business models.

Pledge Revolution or Exit Cover? Celestia's PoG Proposal and the Billion Yuan Cash-Out Doubts

In the face of various accusations and public opinion turmoil, the founder of Celestia stated that despite the current market being filled with "increasingly outrageous FUD," all founding members, early employees, and core engineers are still on duty. He also revealed that Celestia currently has over 100 million dollars in reserves, with sufficient cash flow to support operations for more than 6 years.

Against the backdrop of TIA's price having fallen 92% from its peak, Celestia's "modular vision" is facing an unprecedented Crisis of Confidence. Is this deflationary reform aimed at the long-term value of TIA, or is it a form of institutional cover after the team has "dumped at a high"? Whether Celestia can rebuild community trust will be crucial for the project's future development.

Staking Revolution or Exit Cover? Celestia's PoG Proposal and the Billion Yuan Cash-out Suspicion

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SandwichHuntervip
· 6h ago
Still not thinking of playing people for suckers?
View OriginalReply0
LiquidationAlertvip
· 6h ago
Dumping and cashing out is the best proof.
View OriginalReply0
RugDocDetectivevip
· 6h ago
play people for suckers wave after wave, see the strange and feel no surprise
View OriginalReply0
FOMOSapienvip
· 6h ago
Play people for suckers and then want to talk about trust?
View OriginalReply0
DaoDevelopervip
· 6h ago
classic governance theater tbh... dumping + new tokenomics = ngmi
Reply0
MemeKingNFTvip
· 6h ago
The founding team cashes out before discussing fairness, just like the great wind blowing the leaves in the Book of Songs.
View OriginalReply0
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