Lotus Upgrade: A New Era for Celestia

Celestia’s (TIA) v4 mainnet upgrade, codenamed Lotus, is on the way. 

The upgrade introduces Hyperlane interoperability and revamps TIA inflation for a more balanced economic model. It also adjusts how staking rewards are handled, locking them based on each account’s existing vesting schedule.

With CIP-32, Celestia integrates Hyperlane directly into the Cosmos (ATOM) SDK. That means TIA can move across new rollups or external networks (like Ethereum (ETH), Coinbase's (COIN) Base, or Arbitrum (ARB)) that also have Hyperlane connections. 

Developers can create cross-chain applications bridging Celestia’s data availability features with other chains. This interoperability coprocessor approach unlocks a wave of frictionless, multi-chain solutions.

On the economics side, CIP-29 cuts TIA inflation by 33%, meaning token emissions decline more sharply than before. The idea is to keep staking yields competitive while gradually lowering overall supply growth. 

Also, CIP-30 removes mandatory auto-claiming of rewards, letting users decide when to withdraw. And CIP-31 ensures staked rewards remain locked if the staking account is locked.

Lotus is currently live on Arabica testnet and soon hits the Mocha testnet. Mainnet Beta activation is expected in June-ish 2025. Once live, cross-chain TIA flows become straightforward, and locked-stake logic is more transparent.

In a nut shell, the goal of Lotus iss to refine Celestia’s economics while boosting cross-chain potential. 

See Also: Enjin Gains USDT & USDC Via Hyperbridge

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