Celestia's Lotus Upgrade Enhances TIA Interoperability and Reduces Inflation
James Ding May 19, 2025 17:06
Celestia announces its v4 mainnet upgrade, Lotus, introducing native TIA interoperability and a reduction in inflation, enhancing network security and staking incentives.
Celestia is set to launch its v4 mainnet upgrade, known as Lotus, which promises to introduce significant enhancements in interoperability and economic policy. The upgrade, as detailed in a recent announcement by Celestia, integrates Hyperlane as a Cosmos SDK module, enabling direct TIA interoperability for Celestia rollups and other chains like Ethereum Mainnet and Arbitrum One, among others.
Key Features of the Lotus Upgrade
The Lotus upgrade is a pivotal development for Celestia, focusing on both technological and economic improvements. By incorporating Hyperlane, Celestia aims to expand its network connectivity, allowing seamless interaction across over 100 networks. This move is particularly beneficial for new rollups, providing them with access to a wide range of blockchain ecosystems.
Additionally, the upgrade introduces several changes to the inflation and staking mechanisms of Celestia. According to the details provided, CIP-29 reduces the inflation schedule by 33%, aiming to balance inflation reduction with maintaining competitive staking rewards. This adjustment is part of a broader strategy to ensure economic sustainability while securing the network through attractive staking incentives.
Staking and Reward Management
Further changes include CIP-30 and CIP-31, which refine the management of staking rewards. CIP-30 eliminates the mandatory auto-claiming of staking rewards, granting users more flexibility in managing their earnings. This change could potentially offer better tax outcomes for users in various jurisdictions.
CIP-31 incorporates staking rewards into vesting account schedules, ensuring that rewards adhere to existing lockup periods. This measure is designed to prevent the premature transfer of staking rewards and to maintain network security by encouraging token locking.
Hyperlane Integration
The integration of Hyperlane, as specified in CIP-32, marks a significant step towards enhancing Celestia’s interoperability. Hyperlane, being open-source and permissionless, is tailored to support new rollups with its robust network connections. The addition of two new SDK modules, 'x/core' and 'x/warp', facilitates token transfers while initially restricting non-native tokens.
As part of its security framework, the protocol will initially utilize a multisig interchain security module (ISM) for cross-chain communication, with potential upgrades to a ZK-based ISM that leverages the Celestia PoS validator set.
The Lotus upgrade is already active on the Arabica testnet and is expected to be deployed on the Mocha testnet soon, with a mainnet launch anticipated in June. For detailed instructions on upgrading, stakeholders are directed to consult the official Celestia documentation.
This strategic upgrade reflects Celestia’s commitment to enhancing its blockchain infrastructure, ensuring both technological advancement and economic stability within its ecosystem.
Image source: Shutterstock