Wu Shuo learned that Celestia co-founder John Adler proposed Proof-of-Governance (PoG) as the ultimate solution for Liquid Staking Tokens (LSTs). PoG determines validators through off-chain community voting (rather than stakers), separating protocol security from the total value locked (TVL). PoG can reduce the token issuance rate from 5% to 0.25% while maintaining network security. Due to DeFi yield incentives, LSTs will still be generated even without delegated staking; at 100% bonding rate, net issuance approaches zero, with issuance only to validators. PoG eliminates the staking requirement, making TIA tokens equivalent to LSTs, simplifying protocol design.

Wu Shuo learned that Celestia co-founder John Adler proposed Proof-of-Governance (PoG) as the ultimate solution for Liquid Staking Tokens (LSTs). This method uses off-chain community voting (instead of stakers) to select validators, separating protocol security from total revenue extracted value (REV). PoG can reduce the token issuance rate from 5% to 0.25%, maintaining network security. Driven by DeFi yields, LSTs will still be generated even without delegated staking; at 100% bonding rate, net issuance approaches zero, with issuance only to validators. PoG eliminates the need for staking, making the TIA token equivalent to LSTs, simplifying protocol design.

Celestia Co-founder Proposes PoG Model: Replacing Staking Mechanism with Off-chain Governance to Reshape LST Security Logic