What is Celestia (TIA)?

Celestia (TIA) is a pioneering modular blockchain network designed to significantly enhance blockchain scalability and efficiency. It achieves this by introducing a novel approach that separates execution from consensus. This separation allows Celestia to provide a foundational layer where developers can deploy their own blockchains with minimal overhead, focusing on the specific functionalities of their applications without the need to build and maintain a full consensus mechanism from scratch.

Celestia's governance model is decentralized, with TIA holders having the ability to vote on key network decisions, including proposals that affect the network's parameters and the allocation of community pool resources, which receive a portion of block rewards. This model underscores the community's role in guiding the development and direction of the Celestia network.

At its core, Celestia's modular architecture aims to simplify the process of blockchain deployment, making it as easy as launching a smart contract. This not only lowers the barrier to entry for blockchain development but also fosters innovation by enabling creators to focus on their specific use cases without worrying about underlying infrastructure challenges.

What is TIA?

The native token of Celestia, TIA, was launched October 31, 2023 with an initial supply of 1 billion tokens. The TIA token is used to pay for data storage in Celestia's blobspace, a crucial function as rollups (layer 2 scaling solutions) publish data to the Celestia network by utilizing TIA for transaction fees. Furthermore, TIA serves as a gas token for these rollups, enabling smooth operation and interaction within the Celestia network.

Staking TIA allows users to participate in the network's consensus mechanism, thereby securing the Celestia blockchain. Holders of TIA can delegate their tokens to validators, earning a portion of the staking rewards distributed for maintaining network security. This proof-of-stake model is foundational to Celestia's operation, ensuring both security and decentralized governance.

Risk statement

Before trading any crypto assets it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

No securities regulatory authority or regulator in Canada has evaluated or endorsed the Crypto Contracts or any of the crypto assets made available through the platform.

Wealthsimple has performed an assessment of whether TIA can be supported by Wealthsimple's platform, including whether TIA is a security and/or a derivative and is being offered in compliance with securities and derivatives laws.

We evaluated TIA based on publicly available information, including (but not limited to):

• The creation, governance, usage and design of TIA, including the source code, security and roadmap for growth in the developer community and, if applicable, the background of the developer(s) that first created TIA;
• The supply, demand, maturity, utility and liquidity of TIA;
• Material technical risks associated with TIA, including any code defects, security breaches and other threats concerning TIA and its supporting blockchain (such as the susceptibility to hacking and impact of forking), or the practices and protocols that apply to them;
• Legal and regulatory risks associated with TIA, including any pending, potential, or prior civil, regulatory, criminal, or enforcement action relating to the issuance, distribution, or use of TIA; and
• Statements made by regulators or securities regulatory authorities in Canada and other jurisdiction regarding whether TIA, or generally about whether the type of crypto asset, is a security and/or a derivative.

Wealthsimple monitors ongoing developments related to crypto assets available on its platform for significant changes that may affect Wealthsimple's original assessment of those assets, including Wealthsimple's assessment of the application of securities and derivatives laws. Any significant changes relating to TIA may result in changes to this Crypto Asset Statement and/or Wealthsimple's ability to support TIA.

Like all other crypto assets, there are some general risks to investing in TIA. These include short history risk, volatility risk, liquidity risk, demand risk, forking risk, cryptography risk, regulatory risk, concentration risk, electronic trading risk and cyber security risk. Please review the Wealthsimple Crypto Product Risk Disclosure for additional discussion of general risks associated with the crypto assets made available through the platform.

We emphasize that this Crypto Asset Statement is not exhaustive of all risks associated with trading TIA. Investors should perform their own assessment to determine the appropriate level of risk for their personal circumstances.

Wealthsimple is offering Crypto Contracts in reliance on a prospectus exemption contained in the exemptive relief decision Re Wealthsimple Investments Inc. dated December 18, 2023 (the Decision).

The statutory rights of action for damages and rescission in section 130.1 of the Securities Act (Ontario), and, if applicable, similar statutory rights under securities legislation of other jurisdictions of Canada, do not apply in respect of this Crypto Asset Statement to the extent a Crypto Contract is distributed under the prospectus relief in the Decision.

Last updated: January 2, 2025