The Celestia Foundation has executed a strategic repurchase of all remaining TIA token holdings from venture capital firm Polychain Capital, totaling $62.5 million. This significant transaction marks the complete divestment of a pivotal early investor and coincides with an upcoming network upgrade designed to refine TIA’s staking reward distribution. This proactive measure underscores the Foundation’s commitment to stabilizing tokenomics and addressing evolving market dynamics.
- The Celestia Foundation repurchased $62.5 million in TIA tokens (43,451,616.09 TIA) from Polychain Capital.
- This move completes Polychain Capital’s divestment, addressing concerns regarding their previous large-scale sales of liquid staking rewards.
- The repurchased tokens will be redistributed to new investors under a new unlock schedule, set from August 16 to November 14.
- The upcoming ‘Lotus’ network upgrade, slated for late July, will introduce a proportional mechanism for staking rewards, aiming to curb speculative selling.
Strategic Acquisition and Future Distribution
The acquisition encompassed precisely 43,451,616.09 TIA tokens, priced at approximately $1.44 per token. This valuation aligns with market rates observed in early July 2025. These repurchased tokens are slated for redistribution among a new cohort of investors, following a strategically planned unlock schedule set to commence on August 16 and conclude by November 14. This phased release is designed to diversify the investor base and enable more strategic management of the circulating supply within the broader Celestia ecosystem.
Addressing Prior Market Dynamics and Investor Behavior
This repurchase by the Celestia Foundation follows considerable scrutiny over Polychain Capital’s extensive sales of liquid staking rewards. Analysts estimate that Polychain, an early investor with an initial outlay of approximately $20 million across Series A and B funding rounds, may have sold TIA tokens totaling up to $242 million. A substantial portion of this figure, approximately $179 million, was reportedly derived from liquid staking rewards. Such large-scale dispositions are believed to have contributed significantly to speculative pressure and volatility within the token’s market dynamics.
The ‘Lotus’ Network Upgrade for Tokenomics Stability
In direct response to these market dynamics, the Celestia network is poised to implement the ‘Lotus’ update in late July. This forthcoming upgrade introduces a proportional mechanism for the distribution of staking rewards. Under the new system, the accessibility of staking rewards will be directly linked to the unlocked portion of a user’s tokens. For instance, if only 50% of a user’s vested tokens are unlocked, only 50% of their accrued staking rewards will become available. This measure is specifically designed to curb speculative selling by major vested token holders, thereby fostering a more balanced and predictable token supply within the Celestia ecosystem and enhancing long-term stability.
The Celestia Foundation has worked with Polychain Capital to assign Polychain’s entire remaining TIA holdings to new investors.
This month, the Foundation purchased 43,451,616.09 TIA from Polychain Capital for $62.5m. Polychain will shortly be undelegating their entire staked… pic.twitter.com/1816223455242760205
— Celestia 🦣 (@celestia) July 24, 2025
Senior Crypto Correspondent with over 8 years of experience covering Bitcoin, altcoins, and blockchain technology for leading financial publications. Alexander holds a master’s degree in Financial Economics and specializes in in-depth market analysis, regulatory updates, and interviews with top industry figures.