Polychain Capital sold its remaining 43.4 million TIA tokens, valued at $62.5 million, directly to the Celestia Foundation on July 24, 2025. The transaction occurred ahead of a new staking cycle commencing in mid-August, marking a strategic redistribution of tokens previously delegated by the venture firm. Celestia co-founders Mustafa Al-Bassam and Ismail Khoffi confirmed the buyback, stating the tokens will be reallocated to new investors under a phased unlock schedule from August 16 to November 14.
Polychain's exit concludes a highly profitable staking position where the firm earned $80 million in rewards without selling its principal stake, turning an initial $20 million investment into massive returns. The undelegation of tokens has sparked concerns over potential short-term liquidity impacts and centralization risks, as it may reduce Celestia's Total Value Locked (TVL). Market observers noted the move highlights systemic issues in proof-of-stake economies, where early investors disproportionately benefit from emissions-based rewards compared to retail participants.
Polychain founder Olaf Carlson-Wee framed the sale as alignment with Celestia's long-term vision, stating: "This strategic exit allows us to meet our investment goals while supporting the ecosystem." Despite no immediate volatility in major cryptocurrencies like BTC or ETH, the redistribution raises questions about wealth gaps in staking models and Celestia's future token dynamics.