There has also been some discussion on this thread about implementing such a model: Signaling proposal to implement minimum uptime of 1 day for a CL position
I think the repercussions of only incentivising depth are shown particularly in stable tokens. When USDT first launched the liquidity was insufficient to hold it at peg and large transactions triggered a depeg due to the liquidity all being focused on the minimum possible tick range.
By setting an uptime requirement we lose some capital efficiency for liquidity while being far more resilient against depeg events, especially global ones which won’t be arbitrage away quickly. The efficency is still far better than classic pools even with a wider distribution around tick.
I believe this should be in place for all tokens but at a much shorter uptime requirement. Celestia launch might have been volatile, but that just encourages providers to provide a wider positions rather than constantly following the tick around. This results in a more stable trading experience since liquidity is relatively constant. The uptime requirement should be measured in minutes, hours at most, rather than days in my opinion.