TEL issuance is used to incentivize market participants to provide decentralized services to Telcoin the ecosystem and platform. Telcoin tokens (TEL) are expected to provide the economic incentives to encourage participants to contribute to and maintain the ecosystem on the Telcoin Platform. Active market participants provide services that benefit the ecosystem, platform, and fellow users in exchange for issuance and in some cases, transaction fees. Issuance is meritocratic, rules based, and will evolve over time.
Telcoin Issuance Governance
As the core developer of the platform, Telcoin’s role is to securely design and deploy rules-based, automated systems for calculation and distribution of incentives, to allocate issuance appropriately in order to meet the design objectives of the platform, and to continuously improve those processes - evolving the system based on real data with full transparency. For example, it may turn out that one form of issuance, such as Subsidy Issuance, is no longer needed because there are no excessive costs to using the platform. Telcoin will then allocate that percentage of issuance to a more effective issuance type. Telcoin governs the usage of the TEL Genesis Wallet and can use all issuance reserves vaults for targeted incentives for market participants at its sole discretion, including the annual inflation percentage, which is subject to increase or decrease based on efficacy and market conditions. Additionally, any “excess” issuance which is not earned by market participants during the allotted period will be governed by Telcoin for targeted incentives within the scope of the services the issuance is intended to incentivize. Over time, various components of TEL issuance will be decentralized to market participants for governance.
Issuance Distribution Mechanism
Description: Telcoin issuance flows automatically on a weekly basis from the TEL Genesis Wallet to a network of reserves wallets specific to each type of issuance. Market participants earn incentives for participating and providing services to the Telcoin Platform, and, after their individual vesting period is over, claim accrued incentives from the respective reserve vault.
Purpose: The purpose of the reserves system is to automatically distribute issuance incentives based on a rules-based framework or “protocol.”
Telcoin Issuance Design Objectives
Incentivize market participants across each layer of the platform to provide services that benefit the Telcoin Platform and its users.
Align the incentives of market participants with the success of the Telcoin Platform.
Decentralize the platform by enabling anyone with a mobile phone to actively participate on a level playing field and earn incentives.
Fairly distribute TEL incentives to active market participants who provide long term, durable value to the Telcoin Platform.
Self-sustain without issuance over time, replacing TEL issuance with fees as the primary economic driver of service provision.
Financial inclusion - every mobile phone user in the world is eligible to participate, access services, and earn issuance.
Telcoin Issuance Types
50% User Activity & Validator Issuance - GSMA Member Mobile Network Operators (MNOs) earn an ongoing pro-rata percentage of weekly issuance based on how many blocks they secured during the week, their user's transaction volume and activity.
Objective: Coordinate GSMA and MFS partners around the Telcoin Platform as the primary mechanism for distributing financial services to their customers, and reward them for marketing the platform to their users based on real economic activity.
Genesis: Commences at launch of Rivendell.
20% Developer Issuance - MNOs, MMSPs, and DeFi protocols with live applications on Rivendell earn an ongoing pro-rata percentage of weekly issuance-based on their application usage during the period.
Objective: Coordinate financial protocol, infrastructure, and application developers around Rivendell, and to reward them for building systems that power economic activity.
Genesis: Commences at launch of Rivendell.
15% TELx Issuance - Active Telcoin users earn generalized and targeted weekly issuance incentives for providing Proof of Liquidity or Liquidity Mining and other services to TELx.
Objective: Coordinate a global, diverse, liquid, decentralized network of Telcoin Markets for end-user products and services.
Genesis: Liquidity mining pilot programs on Uniswap and Balancer began in autumn of 2020 and are still ongoing. The launch of the TELx portal will begin formal commencement of commercial scale TELx liquidity mining.
V3: Proof of Liquidity or Liquidity Mining on Automated Market Makers.
10% User Acquisition & Educational Issuance
Objective: Incentivizing adoption, usability, decentralization, and understanding of the Telcoin platform.
5% Foundation Issuance
Objective: Financial Inclusion