Celestia Revisits Consensus After TIA Crash to Record Low
Date: 2025-06-25 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
On June 22, the price of Celestia's native token (TIA) fell to $1.32, the lowest since its launch. This 92% drop from its previous peak of $20.85 caused a strong reaction from the community and led to accusations of unfair practices on the part of the project team.
One X user, 0xCircusLover, claimed that Celestia was conducting OTC sales of tokens that were previously in the vesting stage. According to him, the project allegedly coordinated campaigns with highly paid individuals to promote TIA on social networks, and the amount of assets sold could reach $ 1 billion.
The project's co-founder Mustafa Al-Bassam responded to the accusations, calling them ordinary FUD. He emphasized that the team remains in place and continues to work actively. According to Al-Bassam, sharp price drops are a normal part of the development of most cryptocurrencies. He also noted that the project has significant resources - $ 100 million and a six-year development plan, which gives confidence in the long term.
Amid the negativity in the community, the second co-founder of Celestia, John Adler, presented the idea of a radical change in the consensus model. Instead of the current Proof-of-Stake, he proposed switching to a new algorithm - Proof-of-Governance, within the framework of which it is planned to reduce the emission of new tokens by 20 times, as well as abandon complex liquid staking mechanisms.
According to the proposal, the annual token inflation will be reduced from 5% to 0.25%, while the network security will not be affected. The new system, according to Adler, will be fairer: token holders will be able to vote for validators without blocking their coins, although without the right to receive a reward. Validators will continue to receive payments for delegation.
After the announcement of this initiative, the price of TIA rose by about 10% - to $ 1.65, which temporarily weakened the wave of criticism against the project.
Recall that in May, Movement Labs also found itself at the center of a scandal: one of the company's co-founders was fired after accusations of manipulating the MOVE token market.
