PROOF-OF-GOVERNANCE AS THE ENDGAME FOR LSTS

Summary from the TLDR Crypto newsletter

Proof-of-Governance is the natural conclusion of liquid staking tokens by decoupling validator rewards from staker issuance. It allows protocols to cut staking issuance from about 5% to 0.25% without weakening security. With near-100% bonding and fee burning, net issuance to token holders approaches zero, making standalone LSTs redundant. Security derives from denying future validator fees rather than slashing stake, and onchain PoS already functions as a permissioned system. By shifting validator selection to offchain governance, Celestia could simplify its economics, eliminate redundant staking mechanics, and focus value accrual directly for TIA holders.