Celestia Founder Backs Staking Rewards Lock-up Proposal

Celestia Founder Voices Support for Staking Rewards Lock-up Restriction for TIA

The Celestia community has proposed a staking reward lockup limit for vested tokens, aligning the staking reward unlock time with the original token vesting period. In response to this proposal, Celestia founder Mustafa Al-Bassam expressed his support, stating, "Let's get this proposal across the line. Currently, most PoS networks do not lock up stakers' share of rewards. This proposal addresses Celestia's issue, and other Cosmos SDK chains can also adopt this approach."

This proposal aims to address the issue of stakers receiving their rewards immediately, which can lead to market instability and inflation. By aligning the staking reward unlock time with the original token vesting period, the proposal seeks to create a more stable and sustainable ecosystem for Celestia and other Cosmos SDK chains.

The Celestia community's initiative comes at a time when the staking rewards landscape is evolving. As more networks adopt proof-of-stake (PoS) consensus mechanisms, the need for responsible staking practices becomes increasingly important. This proposal is a step towards promoting a healthier and more sustainable staking environment.

The support from Celestia's founder highlights the importance of community engagement and collaboration in shaping the future of blockchain networks. As the Celestia community continues to grow and evolve, it is crucial for stakeholders to work together to address the challenges and opportunities that arise in the staking rewards landscape.