The price of Celestia (TIA) has sharply increased by 11.64%, reaching $1.64, attracting attention from investors and analysts in the cryptocurrency space. The main factor contributing to this rise is a new governance proposal that has sparked lively discussion within the community.
The 'Proof of Governance' Proposal
A recent proposal called 'Proof of Governance' was presented on the Celestia governance forum and has already resonated significantly among users. It aims to rethink the validator selection process and the distribution of rewards. Unlike the traditional staking process, the new approach suggests direct election of validators by governance, eliminating the need for token locking or waiting through unbonding periods.
One of the key aspects of the proposal is the potential reduction of inflation from approximately 5% to 0.25% annually, while validators will continue to receive their payouts. All fees and MEV will be burned instead of being distributed to stakers, ensuring equal benefits for all TIA holders, not just those who stake tokens.
Technical Analysis of TIA Price
The technical indicators for TIA also validate the price surge. On the 4-hour chart, TIA formed a double-bottom pattern after hitting a recent low of $1.32. The current price has reclaimed the 50-period simple moving average at $1.49, turning previous resistance into near-term support. Technical indicators show rising momentum and higher lows, while the Relative Strength Index (RSI) hovers just below overbought territory.
Market Discussion and Expectations
The market is discussing the proposals and their implications, although final decisions are still under deliberation. Nevertheless, market participants are beginning to position themselves early for possible further changes in Celestia's governance. There are also indications that broader sector dynamics concerning modular blockchain infrastructure play a role in the current price movement.
The community support in response to the 'Proof of Governance' proposal indicates Celestia's potential, while the current price dynamics create an atmosphere of increasing interest in the project. Market participants' expectations remain high in light of this change, and further developments in governance may have a significant impact on the TIA price.
