Celestia’s Tokenomics: What Needs to Change? | Dean Eigenmann & Marko Baricevic

This episode of Expansion dives into Celestia's latest improvement proposals with Dean Eigenmann and Marko Baricevic. We discuss their proposals on locking staking rewards and decreasing Celestia’s inflation rate, which aim to improve tokenomics and long-term network sustainability. The conversation expands into broader debates on proof-of-stake incentives, inflation models, and Celestia’s relationship with Ethereum. Enjoy! Resources CIP-29: Decrease Inflation and Adjust Disinflation: https://github.com/celestiaorg/CIPs/blob/main/cips/cip-29.md CIP-30: Prevent Auto-Claiming of Staking Rewards: https://github.com/celestiaorg/CIPs/blob/main/cips/cip-30.md CIP-31: Treat Rewards as part of the Lockup Account: https://github.com/celestiaorg/CIPs/blob/main/cips/cip-31.md – L2s and L3s are history. Supra Containers give you dedicated, customizable AppSpace on Supra’s Layer-1 to rescue you from the costs, complexities, and fragmentation of L2s and L3s.  Containers help you build with better customization and control than appchains at a fraction of the cost. Use your own token as the gas token, create local fee markets with custom gas amounts or just go gasless, and scale on demand whenever you need to. Supra Containers are secured by Supra’s L1 nodes and get access to Supra’s 500k TPS throughput, sub-second consensus latency, and all their built-in services like oracle price feeds and onchain randomness without any overhead. Supra is also MultiVM compatible so you can easily deploy your EVM, Move, and SVM smart contracts here. Get all the freedom, control, and tools you need to build super dApps and bring the world onchain. To learn more, visit www.supra.com/blockworks – Ledger, the global leader in digital asset security, proudly sponsors Expansion! As Ledger celebrates 10 years of securing 20% of global crypto, it remains the top choice for securing your assets. Buy a LEDGER™ device now, and build confidently, knowing your BTC, ETH, SOL, and more are safe. Buy now on https://shop.ledger.com/?r=1da180a5de00 – Join us at DAS NYC 2025!  Use code EXPANSION10 for a 10% discount: https://blockworks.co/event/digital-asset-summit-2025-new-york - - Follow Dean: https://x.com/DeanEigenmann Follow Marko: https://x.com/MarkoBaricevic_ Follow Mike: https://x.com/MikeIppolito_ Follow Expansion: https://x.com/ExpansionPod_ Subscribe on YouTube: https://bit.ly/3QLwfTs Subscribe on Apple: http://apple.co/4bGKYYM Subscribe on Spotify: http://spoti.fi/3Vaubq1 Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/ -- Timestamps: (00:00) Introduction (04:49) Celestia's Relationship to Cosmos (09:28) Changing Celestia's Economics and Incentives (13:03) Supra Pre-Roll (13:30) Ledger Pre-Roll (13:47) Locking Staking Rewards (16:45) What is the Ideal Stake Rate? (24:49) Lowering Celestia's Inflation Rate (33:30) The Inflation Debate (42:27) Supra Mid-Roll (43:11) Ledger Mid-Roll (43:47) Should Celestia Focus on Generating Fees? (50:47) Is the L1 Premium Dead? (01:00:33) Celestia's Relationship With Ethereum - - Disclaimer Expansion was kickstarted by a grant from the Celestia Foundation. Nothing said on Expansion is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Michael, Nick, and our guests may hold positions in the companies, funds, or projects discussed.