On 24 July 2025, Polychain Capital completed the sale of its entire stake in Celestia’s native TIA tokens to the Celestia Foundation for a total of US$62.5 million (approximately AU$94.90 million). This transaction, which involved over 43 million tokens, valued the tokens at around US$1.44 (AU$2.18) each.
### Details of the Sale
According to a tweet from the Celestia Foundation, this sale marks the end of Polychain’s investment in the blockchain project. To facilitate a smooth transition, the Foundation plans to redistribute the acquired tokens under a phased unlock schedule, commencing on 16 August and concluding by 14 November. This strategy is designed to mitigate potential price volatility and foster investor confidence as the tokens are gradually released to the market.
### Criticism of Past Sales
This move follows scrutiny of Polychain’s earlier sales related to liquid staking rewards, with critics arguing that those transactions were at odds with the intended lock-up terms for their main token allocations. Blockchain analysts have suggested that Polychain may have liquidated stakes worth over US$240 million (around AU$364.41 million) from staking rewards since its initial investment in Celestia.
### Upcoming Changes with the Lotus Upgrade
In response to these concerns, Celestia is set to launch a significant upgrade known as Lotus later this month. This upgrade aims to align staking rewards with token vesting schedules, imposing lock-up restrictions on staking rewards to match those of the underlying tokens. As a result, for wallets where tokens are subject to delayed vesting, both the original tokens and the associated staking rewards will remain locked until fully unlocked.
Market reactions to this sale have been mixed; while no significant disruptions to the broader cryptocurrency market have been reported, it has sparked worries about reduced liquidity and potential short-term implications for TIA’s Total Value Locked (TVL). Analysts have noted that this staggered sale approach is an effort to stabilise market dynamics and enhance long-term investor confidence.
### Broader Implications for Decentralisation
Celestia is marketing this transaction as part of a commitment to decentralisation and investor transparency. Polychain, on the other hand, has positioned its exit as aligning with its broader investment strategy. However, no additional comments have been provided by either party beyond their initial public statements.
This development highlights the evolving landscape of cryptocurrency investing and the importance of aligning governance structures with investor interests. As Celestia moves forward, the success of the phased redistribution and the Lotus upgrade could play crucial roles in maintaining market stability and investor trust.
