Why Is Celestia (TIA) Price Soaring Today? the ‘Proof of Governance’ Proposal Explained

Celestia price is turning heads today after jumping 11.64%, pushing the price up to $1.64. Volume is booming too, up over 164%, making TIA the best performer in the market right now. The move isn’t just about chart patterns; a bold new governance proposal is fueling fresh excitement across the community.

The noise started with a forum post that’s now making rounds on X, shared by onchain analyst Zerokn0wledge_ and originally submitted by Jadler0

The proposal, called “Proof of Governance,” lays out a plan to overhaul how validators are selected and how rewards are distributed. Instead of the usual staking process, the idea is to let governance directly elect validators, no more token locking, delegating, or waiting through unbonding periods.

One of the standout parts of the proposal? Inflation could drop from around 5% to just 0.25% annually, but validators would still earn the same payouts. That’s because they’d still get their 5% cut, just without bloating the overall supply

On top of that, all transaction fees and MEV would be burned instead of going to stakers, which means every TIA holder benefits equally, not just the ones staking.

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Will "Proof of Governance" save $TIA?Two weeks ago, @jadler0 dropped a proposal in the @celestia governance forum, that promises to reduce inflation by a factor of 20, add proper value accrual mechanisms, and turn $TIA into a native LST.Let me give you a TL;DR on what this… pic.twitter.com/UUmDnfKhCN

— zerokn0wledge.hl (@zerokn0wledge_) July 6, 2025

The post also argues that Liquid Staking Tokens (LSTs) become pointless in this setup. With no staking involved, TIA itself effectively becomes a liquid staking token, fully composable, without added smart contract risk

According to the authors, this new model better reflects how staking really works today and could help Celestia stop overpaying for security, which they claim it’s doing by up to 20x under the current system.

Celestia Technical Setup Aligns With Breakout Move

TIA price action shows strong technical alignment with today’s surge. On the 4H chart, TIA has broken out from a recent low near $1.32, forming a double-bottom pattern. The price has now reclaimed the 50-period simple moving average at $1.49, turning prior resistance into near-term support.

Celestia chart structure shows higher lows and rising momentum, with RSI hovering just under overbought territory at 69.72. Resistance is set between $1.68 and $1.70, with $1.82 and $2.00 as the next possible targets if bullish momentum continues.

Source: TradingView.com

Furthermore, traders are also pointing to broader sector dynamics as part of the move. Modular blockchain infrastructure has seen increased attention, and Celestia’s positioning within this trend is drawing additional speculative flows. Derivatives data shows long positions dominating, suggesting confidence in the short-term upside despite spot profit-taking.

The proposal and its implications are still under discussion, but market participants appear to be positioning early in anticipation of further developments around Celestia’s evolving governance design.

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The post Why Is Celestia (TIA) Price Soaring Today? The ‘Proof of Governance’ Proposal Explained appeared first on CaptainAltcoin.