In the fast-evolving world of blockchain, Celestia's native token, TIA, is making waves with its potential to shift into deflationary territory. According to a recent post on X by Nick White, co-founder of Celestia, this could happen sooner than many think.

Nick highlights that after the implementation of proof-of-governance—a system where token holders vote on key decisions to ensure decentralized control—Celestia's annual token issuance will drop to a mere 0.25%. That's incredibly low compared to many other cryptocurrencies, where issuance rates can inflate the

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- The X Post discusses TIA, Celestia's token, potentially becoming deflationary.
supply over time.

But here's the kicker: this tiny issuance could be completely offset if the network achieves a sustained throughput of 4.5 MB/s, which translates to about 45,000 transactions per second (TPS). Throughput refers to the amount of data the blockchain can process per second, and TPS is a common metric for how many transactions it can handle. For context, that's a level of performance that puts Celestia in the big leagues of scalable blockchains.

Nick points out that reaching 4.5 MB/s isn't a pipe dream. It could be driven by just one successful centralized limit order book (CLOB) decentralized exchange (DEX) built on Celestia. He name-checks promising projects like Bullet, Hibachi, and Rise Chain, among others. These are apps designed for high-speed trading, and if any one of them gains traction, it could push the network's activity to the required levels.

For meme token enthusiasts and blockchain practitioners, this is exciting news. Deflationary mechanics mean that as demand grows and supply effectively shrinks (through burning or offsetting issuance), the token's value could appreciate over time. Celestia's modular design, which separates data availability from execution, allows for this kind of scalability without compromising security.

Keep an eye on Celestia as these developments unfold. With low issuance and potential for massive throughput, TIA might just become a staple in the deflationary crypto narrative. If you're diving into modular blockchains or looking for the next big thing in DeFi, this is a trend worth following.