- Polychain sold 43.4M TIA tokens to Celestia Foundation for US$62.5M on 24 July 2025.
- Tokens will be redistributed between 16 August and 14 November via a phased unlock.
- Celestia will implement the Lotus upgrade to lock staking rewards in line with token vesting.
Polychain Capital has sold its full remaining stake in Celestia’s native token, TIA, to the Celestia Foundation for US$62.5 million (AU$94.90 million), finalising its exit from the blockchain project. The sale included over 43 million tokens and was executed on 24 July 2025 at a rate of around US$1.44 (AU$2.18) per token.
These tokens will now be redistributed under a rolling unlock schedule starting mid-August and ending in mid-November, a method intended to smooth investor entry and reduce price volatility. The Foundation said this phased strategy aims to preserve liquidity and market confidence.
This transaction comes amid criticism of Polychain’s earlier sales of liquid staking rewards, which some viewed as inconsistent with the lock-up status of its main allocation. Blockchain analysts estimate Polychain may have sold over US$240 million (AU$364.41 million) in TIA, primarily from staking rewards, since its early investment.
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Upcoming Update Aligns Rewards with Vesting
In response, Celestia is preparing a mainnet upgrade dubbed Lotus, scheduled for release later this month. The upgrade will ensure staking rewards are subject to the same lock-up rules as the tokens they stem from. For wallets with delayed vesting, both the tokens and their rewards will remain inaccessible until fully unlocked.
Market reactions have been mixed. Although no major disruptions to other cryptocurrencies were observed, the sale has raised concerns about reduced liquidity and short-term effects on TIA’s Total Value Locked. Analysts note that the foundation’s staggered resale strategy is aimed at stabilising market dynamics and building long-term confidence.
Celestia has framed the deal as part of a broader push for decentralisation and investor transparency, while Polychain described it as consistent with its investment objectives. No comment was provided by either party beyond the public announcements.
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