Convert TIA to TRY

The original modular blockchain network was Celestia (TIA), which is now well-known. Leading the charge to build scalable networks that are optimized to carry out particular tasks, it is part of the blockchain modularity movement. The fact that new layer two (L2) chains are utilizing Celestia’s data availability solutions puts it squarely in the middle of Ethereum’s growth story.

The native token, TIA, of this blockchain project is experiencing a meteoric rise in investor interest, and the project as a whole is well-positioned for growth. TIA has a fascinating backstory and became immensely popular early on in its lifespan. Is the concept of Celestia something you’re curious about? Then you’ve found the correct spot. We will cover the history of the Celestia project as well as its tokenomics in this article. Take a seat, unwind, and continue reading.

What is Celestia (TIA)?
 

To make their transaction data publicly available, blockchains employ Celestia. As the rollup and L2 industry continues to grow, Celestia plays an important role. L2 is mainly propelled by Ethereum’s rollup-centric scaling strategy. Celestia is at the epicentre of this expansion tale because it provides a specialized platform for other blockchains and rollups to post their data.

Celestia is a proof-of-stake (PoS) blockchain that was built with the Cosmos SDK. To ensure data availability, the Celestia blockchain uses a tweaked version of Cosmos’ Tendermint consensus algorithm, which divides block data into numerous portions for each linked rollup and L2.

Celestia is created for consensus and data availability, not transaction execution, unlike other blockchains. By offering an external layer that can manage consensus and data availability, its primary goal is to facilitate the creation and scalability of developers’ own blockchains. Blockchains can be launched by developers in this configuration without the requirement for a validator set. Additionally, projects are able to zero in on improving their chains for transaction execution and application-specific optimization.

History of Celestia (TIA)
 

TIA’s beta mainnet went live in October 2023. The original idea behind the project was put up by Mustafa Al-Bassam, Ismail Khoffi, and John Adler, who were all involved in the study on modular blockchains. The rapid rise to prominence of Celestia was facilitated by a substantial $55 million fundraising effort spearheaded by Polychain Capital and Bain Capital Crypto, with additional support from Galaxy, Placeholder, and Jump Crypto.

Traders went absolutely bonkers when TIA plummeted at launch, sending the token’s value soaring by over 200% in the weeks after its introduction despite relatively low on-chain activity. According to CoinCheckup, the all-time high for TIA occurred on February 10, 2024, when the price reached approximately $20.85. Its modular “data availability” strategy, which is based on speculation rather than actual network activity, was the primary driver of that rally.

However, as token unlocks, inflationary pressures, and governance concerns impacted sentiment, TIA has gradually fallen significantly from its highs. Staking, purchasing blobspace (data availability), and taking part in Celestia’s governance all require TIA, thus it’s clear that this asset is fundamental.

Among those who strongly support Celestia’s modular model is Mustafa Al-Bassam. His extensive background in crypto scaling leads him to feel that Celestia’s design has the potential to usher in a new era of inexpensive and simple modular blockchains and rollups.

Celestia (TIA) Tokenomics

TIA is Celestia’s native coin. The token plays a crucial role in Celestia’s economy as it enables users to pay for data availability solutions offered by the network. Since the constant addition of new TIA tokens to circulation has depressed its market performance, the distribution, unlock schedule, and quantity of TIA tokens have been the subject of heated controversy in the cryptocurrency industry.

The TIA token’s governance, utility, distribution, and supply are going to be covered in this section.