Why is Liquid Staking important to Celestia?

Celestia is a modular blockchain providing a secure and scalable foundation for decentralized applications (dApps). It achieves this by separating the consensus and data availability layers from the execution layer. This structure allows Celestia to focus on a secure and efficient method for data storage and ordering, while leaving the execution of transactions to other blockchains. Launched in October 2023, Celestia has already achieved up to a 100X reduction in transaction costs for rollups. The chain is designed to scale; as adoption increases, fees decrease.

Staking holds greater importance in Celestia than in other typical appchain ecosystems. The consensus layer secures not only its own chain but also numerous applications using the base chain for data availability, thus safeguarding the applications they build.

Liquid staking enables users to stake their native tokens without locking them up for a specified period. This is achieved by issuing a liquid token in exchange for the staked tokens, securing Celestia and maximizing users' TIA returns simultaneously.