Celestia's Lotus Upgrade Enhances TIA Interoperability and Reduces Inflation

Celestia announces its v4 mainnet upgrade, Lotus, introducing native TIA interoperability and a reduction in inflation, enhancing network security and staking

Celestia is preparing for its v4 mainnet upgrade, named Lotus, which will introduce several new features, including native TIA interoperability and a reduction in inflation. The upgrade, which is expected to launch in June, will also see the integration of Hyperlane as a Cosmos SDK module.

The Lotus upgrade is set to bring about some key changes to Celestia's network. It will see the integration of Hyperlane, which is a Hyperledger Apicha module, as a Cosmos SDK module. This move is aimed at bringing direct TIA interoperability for Celestia rollups and other chains, such as Ethereum Mainnet, Arbitrum One, and more.

Lotus will also see several changes to Celestia's inflation and staking economics. CIP-29 will decrease the inflation schedule by 33%, while also aiming to balance the inflation reduction with the goal of keeping staking rewards competitive. This adjustment is part of a broader strategy to ensure economic sustainability.

Furthermore, the Lotus upgrade will introduce modifications to the management of staking rewards with CIP-30 and CIP-31. These changes are focused on enhancing user convenience and flexibility.

As part of the Lotus upgrade, Hyperlane will be integrated into Celestia, as specified by CIP-32. Hyperlane, being an open-source and permissionless protocol, is designed to support new rollups with its network connections to over 100 chains.

In addition to Hyperlane integration, the Lotus upgrade will also see the addition of two new SDK modules: 'x/core' and 'x/warp'. These modules will enable token transfer capabilities and facilitate the use of non-native tokens on the chain.

For the initial stage of cross-chain communication, the protocol will employ a multisig interchain security module (ISM) for network security. In the future, there are plans to upgrade to a ZK-based ISM that will utilize the Celestia PoS validator set.

The Lotus upgrade is currently in progress on the Arabica testnet, and the Mocha testnet integration is anticipated shortly. The mainnet launch is planned for June. For a comprehensive guide on upgrading a node, stakeholders are advised to refer to the official Celestia documentation.

This upcoming v4 mainnet upgrade signifies Celestia's dedication to advancing its blockchain technology and ensuring its role in the next chapter of the open web.