The Rollup John Adler On Proof Of Goverance, TIA Staking, and New Tokenomics
Jul 23, 2025
Join John Adler from Celestia, a visionary in blockchain technology, as he introduces his bold "proof of governance" concept, challenging traditional proof of stake. He argues that staking inflates yields and creates unfair validator dynamics. Discover how his model could reduce issuance by 20-40x and make burning fees feasible. John also critiques Ethereum's staking and governance, advocating for equal voting power among validators. Get ready for a deep dive into the future of tokenomics and the role of governance in enhancing crypto ecosystems!
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Staking Yield Competes with DeFi
- Staking yield competes with DeFi yield, leading to the rise of liquid staking derivatives (LSTs).
- LSTs allow investors to capture both staking and DeFi yields simultaneously, shaping validator dynamics.
Proof of Governance Replaces Staking
- When all tokens are staked, issuance yield cancels out with dilution, making staking yield effectively zero.
- Proof of governance skips staking and uses governance for validator selection, eliminating fake yield.
Uniform Validator Power Simplifies Consensus
- Proof of governance allows uniform validator voting power, removing economies of scale advantages.
- This uniformity simplifies validator compensation and consensus dynamics significantly.