Proof-of-Governance as the Endgame for LSTs

Hi everyone! We’ve been closely following the Proof of Governance proposal and see it as a positive step for the Celestia network.

PoG shifts focus from staking rewards to governance participation, helping reduce inflation to 0.25%, strengthen decentralization, and better align validator incentives. We believe these three factors will bring benefits both economically and for the ecosystem as a whole.

We’ve also reviewed community discussions around potential risks. Off-chain governance could be influenced by the most active voices, and uniform validator rewards may reduce incentives to contribute beyond the minimum. These concerns could be mitigated through staggered rewards, hybrid governance models, or performance-based incentives.

As an active validator on Celestia, deNodes supports the goals of Proof of Governance. We are ready to adapt our infrastructure to any changes and remain committed to providing secure, reliable network support.

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