The project behind the Celestia data availability blockchain on Monday rolled out what it calls its biggest software upgrade to date, dubbed Matcha.
At its core, this update is designed to increase network capacity and improve token economics. Among the technical changes, it increases the maximum block size to 128 MB (from 8 MB) and changes how data propagation works, allowing for much higher throughput.
Simply put, Celestia is gearing up to handle a lot more data, which is important if many applications start using it as an underlying “routing” or “data availability” layer.
Beyond throughput, the Matcha upgrade also claims to bring significant improvements in economics and interoperability. The upgrade reduces annual token inflation from around 5% to around 2.5%. It also removes a “token filter” for cross-chain bridges, meaning non-TIA assets can more easily be moved or routed through the Celestia layer. This means that Celestia aims to become a go-to layer for cross-chain data availability and asset routing.
The project’s native token, TIA, is up approximately 6% over the past 24 hours, trading around $0.65. However, the token is still down 97% from its December 2024 high of around $19.70.
Read more: From drop to freefall: Celestia’s Tokenomics under fire
