Celestia is entering a pivotal stage with two fundamental changes: Matcha upgrades and proposed government certification (POG).
These technical improvements and restructuring of toconemics could transform TIA from sophisticated inflation tokens into potentially deflationary assets. With growing community expectations and a rapidly growing ecosystem, the issues are: Will the TIA be able to infiltrate strongly in the next few years?
Sponsored Sponsors
Matcha: Technical upgrades and supply tightening
According to an official announcement from Celestia, the matcha upgrade will increase the block size to 128MB, optimize block propagation and improve performance under the proposed CIP-38. More importantly, the CIP-41 proposal will reduce annual inflation from around 5% to 2.5%, directly tightening the TIA’s circulating supply. This change will make TIA more attractive to long-term investors and strengthen its role as a potential collateral asset in Defi.
Beyond supply dynamics, matcha expands the “block space” available in rollups, removes the token filter barrier in IBC/hyperlane, and places Celestia as a central data availability (DA) layer for other chains. This provides the foundation for new revenue streams as it can guide DA fees from the rollup to support future TIA values.
POG: The road to deflation tokens?
The next highlight is the Proof of Governance (POG) proposal. According to a Kairos survey, POG was able to reduce annual publications to just 0.25%. This is a 20x reduction from the current level. A sudden drop in such issuance results in a very low revenue threshold required to push TIAs into net deflection status.
“Our analysis shows that TIAs can potentially transition from inflation tokens to deflation or to assets close to zero inflation under appropriate conditions,” says Kairos Research.
Some experts argue that DA fees alone could be enough to push TIA into the deflationary realm. Adding new revenue streams, such as ecosystem stability and revenue-generating data, could “turn the story of Tia’s toconemics completely.” This perspective strengthens the community’s confidence that Celestia could be a model for adjusting token value to actual business performance.
Sponsored Sponsors
Even Mustafa Al-Bassam, co-founder of Celestia, who was once skeptical of Pog, changed his stance. He compared the system to distributed structures such as ICANN and IANA.
“This perspective is consistent with Celestia’s vision. By enabling verifiable optical nodes, the network must ensure that there is no need to trust accuracy and maintain security without any power concentration.”
If offered by Celestia, POG can be a very positive step for the entire network.
TIA: High expectations, but risk remains
In terms of price, TIA recently revised downwards, reflecting short-term bearish technical signals such as RSI, MACD and net capital outflows. At the time of writing, Beincrypto data shows TIA transactions of more than 93% compared to the February 2024 ATH.
This kind of volatility leaves market sentiment primarily pessimistic. Some investors claim that Tia exemplifies the phrase “Don’t marry a bag.” Airdrop hype 18-24 months ago combines venture investors with a continuous unlocking token locks, suppressing its value and weighing heavily on tokens. Some describe Tia’s chart as “pain and suffering!”
Therefore, these new proposals and $100 million Treasury could become the lifeline of the project. Still, the key is in execution. POGs require community approval, revenue distribution, and a transparent buyback/burn mechanism, and the number of rollups using Celestia must be large enough to generate sustainable DA fare revenue. If DA revenues cannot grow quickly, or if a competitor like Eigenda moves ahead, the DEFL scenario could be delayed.
