Telcoin

Council Members and the TAO: TEL Harvesting Activities and Benefits

Council Members and TAO TEL Harvesting Activities: Introduction

The following section first describes the factors that encompass all aspects of the material, social, and institutional environment which set the context for the Council Members and the Telcoin Association Operations UAB (TAO) to harvest TEL from the Telcoin Platform. We then provide an overview of the TEL harvesting levels and interactions by Councils Members and the TAO, and propose evaluative criteria that could be used by to determine which outcomes the community would deem satisfactory.

Contextual Factors

  • Telcoin Platform and TEL: Characteristics of the Telcoin Platform system and the TEL benefits it generates.
  • Attributes of the Actors: The attributes of the community actors.
  • Governance System: The organizations and rules that structure and control TEL harvesting activities.

TEL Harvesting Interactions and Outcomes

  • Table Overview: The involved actors, the benefits they enjoy, the activities they undertake, using what technologies, the basis formula determining how benefits are calculated, and the infrastructure involved in the situation.
  • Evaluative Criteria: Criteria that may be used by miners or external observers to determine which aspects of the observed outcomes are deemed satisfactory and which aspects are in need of improvement.

Governance System: Relationship to Harvesting Activities

Telcoin Platform governance is constituted legally as the Telcoin Association. The regime is a polycentric, democratic system of self-governance in which the four constituent Miner Groups elect officials to a diverse set of global, local and cross-jurisdictional Miner Councils who each possess considerable autonomy to make and enforce rules within their own circumscribed domain of authority.

Miner Councils set, enforce, and refine the day to day operational rules for interacting with their jurisdictions of the Telcoin Platform, including setting TEL harvesting rules. The TAO, the Telcoin Association’s wholly-owned production and administration unit, serves to produce and administer collective goods at the direction and financing of the Association.

Miner Councils, Authority, and Decision-making Rules

A diverse set of policy-making organizations, composed of elected officials from each Miner Group, who set and enforce the operational rules for interacting with the Telcoin Platform.

Miner Councils: Authority over Harvesting Rules

  • TEL Treasury Rules: The Platform and Treasury Council use the TELIP process to govern TEL Treasury distribution rules.
  • Telcoin Network Rules: The Platform and Treasury Council use the TELIP process to govern Telcoin Network TEL harvesting rules.
  • TELx Rules: The TELx Council governs TELx TEL harvesting rules using the TELxIP process.
  • TAN Rules: TAN council governs TAN harvesting rules using the TANIP process
  • Council Member and TAO Rules: The Platform and Treasury Council use the TELIP process to govern Council Member and TAO Harvesting Rules

Miner Councils: Representation, Authority, and Decision-making Rules

  • Councils | Representation | Process, Domain of Authority | Decision-making Rules
  • Platform Council | Platform Council
    · Members: 8
    · Representation: Balanced across all four Miner Groups. | Telcoin Improvement Proposal (TIP)

    Platform-wide rules
    including communication and information, compliance, legal and organizational rules. | Proposal Authority: Platform, Treasury, Compliance Councils, TAO

    Approval: 6 out of 8
    Quorum: 100%
    Duration: 120 hours
    Channel: telcoinplatformcouncil.eth
  • Platform Council, Treasury Council | Platform Council
    · Members: 8
    · Representation: Balanced across all four Miner Groups.

    Treasury Council
    · Members: 4
    · Representation: Balanced across all four Miner Groups. | TEL Improvement Proposal (TELIP)

    Platform-wide rules
    that involve the TEL Treasury, TEL token contract, Telcoin Network, the Telcoin Association Constitution, and governance infrastructure. | 1. Platform Council: Must approve before submitting to the Treasury Council

    Approval: 6 out of 8
    Quorum: 100%
    Duration: 120 hours
    Channel: telcoinplatformcouncil.eth

    2. Treasury Council: Must vote after the Platform Council has affirmed.

    Approval: 4 out of 4
    Quorum: 100%
    Duration: 72 hours
    Channel: telcointreasurycouncil.eth
  • TAN Council | TAN Council
    · Members: 6
    · Representation:
    Stakers: 2 reps
    Developers: 2 reps
    Liquidity Miners: 1 rep
    Validators: 1 rep | Telcoin Application Network Improvement Proposal (TANIP)

    TAN operational rules including allocation, harvesting, planning and financing, information, communication. | Proposal Authority: TAN Council, TAO

    Approval: 5 out of 6
    Quorum: 100%
    Duration: 120 hours
    Channel: telcointancouncil.eth
  • TELx Council | TELx Council
    · Members: 6
    · Representation:
    Stakers: 1 rep
    Developers: 1 reps
    Liquidity Miners: 3 reps
    Validators: 1 rep | TELx Improvement Proposal (TELxIP)

    TELx operational rules including allocation, harvesting, planning and financing, information, communication. | Proposal Authority: TELx Council, TAO

    Approval: 5 out of 6
    Quorum: 100%
    Duration: 120 hours
    Channel: telxcouncil.eth
  • Compliance Council | Compliance Council
    · Members: 4
    · Representation: Balanced across all four Miner Groups. | Compliance Improvement Proposal (CCIP)

    Authority
    • Veto authority over all Miner Council proposals
    • Compliance,
    • Legal and Organizational,
    • Conflict Resolution,
    • Actor Authorizations | Proposal Authority: TAO, Compliance Council

    Approval: 3 out of 4
    Quorum: 75%
    Duration: 72 hours
    Channel: telcoincompliancecouncil.eth

TEL Harvesting Rules

The rules, set by Miner Councils that define who may harvest, how much TEL from the Telcoin Platform, based on what formula, by what means, using what technologies and the infrastructure involved in the infrastructure involved in the allocation, storage, distribution, extraction of TEL by miners.

TEL Harvesting Rules: TEL Treasury, Telcoin Network, TELx, TAN, Council Members and TAO

TEL Treasury Distribution Rules: The TEL Treasury distributes issuance at a rate of 10% of the TEL in the Treasury per year, with 1B TEL distributed in Y1, based on rules that are set by the Platform and Treasury Councils.

In year one, 1B TEL in total flows throughout the Platform, with 500M TEL distributed to TAN, 200M TEL distributed to TELx and Telcoin Network, 30M TEL to Council Members, and 70M TEL to the TAO. The Platform and Treasury Councils may alter the TEL Treasury distribution levels at any time using the TELIP process.

  • Initial TEL Airdrop: An initial TEL airdrop will be distributed from the TEL Treasury to be allocated, harvested by miners prior to the first election.
  • On-going TEL Stream: On-going flows of TEL distribute throughout the Telcoin Platform from the TEL Treasury each block using automated, smart contract-based streams. TEL streams dynamically self-adjust to 10% of the Treasury at the end of each year.
    • TEL Levels | Y1 | Y2 | Y3
    • TEL Treasury | 10B | 9B + n | 8.1B + n
    • TEL Issuance Rate | Initial: 245M
      Stream: 755M | 900M | 810M
    • TEL Regeneration Rate | n TEL destroyed on Telcoin Network | n TEL | n TEL
    • TAN TEL Levels | Initial: 125M
      Stream: 375M | 459M | 392.85M
    • TELx TEL Levels | Initial: 50M
      Stream: 150M | 184.5M | 166.05M
    • Telcoin Network TEL Levels | Initial: 50M
      Stream: 150M | 184.5M | 166.05M
    • Council Members TEL Levels | Stream: 30M | 27M | 24.3M
    • TAO TEL Levels | Initial: 20M
      Stream: 50M | 45M | 40.5M

Council Member Harvesting Rules: Council Members harvest evenly from an annual allocation of 30M TEL streamed each block they are in possession of a Council NFT, according to rules that are set by the Platform and Treasury Councils.

  • Position Rules: 33 Miner Council Members and TAO Members
  • Eligibility and Participation Requirements: When they are elected, Council Members are transferred a Council NFT which receives a stream of TEL each block.
  • TEL Allocation and Basis Formula: In year one, a total TEL allocation of 30M distributes on a per block basis to each Council NFT for Council Members to claim and harvest at an annual rate of 1.18M TEL per member.
  • Authority over Rules: Council Member TEL harvesting rules are set by the Platform and Treasury Councils using the TELIP process.

TAO Harvesting Rules: An initial TEL airdrop of 20M TEL and an on-going stream of 50M TEL flows to the TAO in year one to finance its purposes. TAO harvesting rules are set by the Platform and Treasury Council using the TELIP process.

  • Component | Y1 TEL Allocation | Purpose
  • TAO Safe | 20,000,000 TEL distributed as an airdrop | Exchanged to pay for audit, Association and TAO costs for the first year.
  • TAO Safe | 50,000,000 TEL distributed evenly each block through a sablier stream. | Used to finance its purpose and on-going responsibilities.

Council Members and TAO TEL Harvesting Interactions

  • Actor | Activities | Eligible Participants | Y1 TEL Allocation | Basis formula for income
  • TAO Issuance | Production, Administration, Ecosystem Development
    Maintains, constructs the Telcoin Platform, facilitates the governance system, and drives ecosystem development | 5 elected members from Telcoin Holdings in the first term then selected by each Miner Group. | Total: 50,000,000
    Flow: Streamed each block | Financing the TAO’s purposes.
  • Council Members | Policy-making and Management
    Participate in decisions regulating the Telcoin Platform. | When they are elected, Council Members are transferred a Council NFT which receives a stream of TEL each block. | Total: 30,000,000
    Flow: Streamed evenly each block | Streamed TEL issuance each block in which they own a Governance NFT.
  • TAO Legal & Org | Legal, Org, Code Audit
    Setting up the TAO, Association, and code audit. | Code audit firm and lawyers. | Total: 20,000,000
    Flow: One time airdrop | Legal and operational set-up costs.

Evaluative Criteria

Sustainability

Can the quantity of TEL issuance units available to be harvested by Council Members and the TAO according to Harvesting Rules sustain at current levels over time?

  • Definition and Importance
    • Definition: Can the quantity of benefits produced by the system and extracted by appropriators sustain over time?
    • Importance: If the stock of benefits available to be extracted from a system are exhausted, the incentives to participate are proportionally reduced for future generations.
  • Indicators
    • Renewability Formula:
      • Councils: (Total TEL burned and replenished to the TEL Treasury as a result of actions made by Councils - Total TEL issued to Council Members)/time
      • TAO: (Total TEL burned and replenished to the TEL Treasury as a result of actions made by TAO - Total TEL issued to Council Members)/time
      • Note: The total TEL burned on Telcoin Network replenishes in proportionate quantity to the TEL Treasury to be harvested by future generations of miners.

Proportional Equivalence

Is the quantity of issuance harvested by Council Members proportionate to the resulting benefits of their activities?

  • Definition and Importance
    • Definition: The rules-in-use allocate benefits proportional to inputs required.(Understanding Institutional Diversity, 262-3, E. Ostrom).
    • Importance: When the rules related to the distribution of benefits are made broadly consistent with the distribution of costs, participants are more willing to pitch in to keep a resource well-maintained and sustainable. Relating user inputs to the benefits they obtain is a crucial element of establishing a fair system. If some users get all the benefits and pay few of the costs, others are not willing to follow rules over time. Thus, fairness is a crucial attribute of the rules of robust systems. (Understanding Institutional Diversity, 263, E. Ostrom)
  • Indicators: Harvesting rules restricting time, place, technology and/or quantity of TEL units are related to local conditions. The benefits obtained by users from TELx, as determined by harvesting rules, are proportional to the amount of inputs required in the form of labor, material, or money, as determined by provisioning rules.
    • Issuance Harvesting: Total issuance harvested < total fees
    • Fiscal Equivalence: Total costs to produce improvements < total fees

Economic Efficiency

How economically efficient is Council and Foundation issuance as measured by the magnitude of the change in the flow of net benefits associated with their activities?

  • Definition and Importance
    • Definition: Measured by the magnitude of the change in the flow of net benefits associated with an allocation or reallocation of resources.
    • Importance: The concept of efficiency often plays a central role in studies estimating the benefits and costs or rates of return to investments that are often used to determine the economic feasibility or desirability of public policies. (E. Ostrom, Understanding Institutional Diversity, 66)
  • Indicators
    • (Net Increase in Benefits over time - Net Increase in Costs over time)
      • E.g. (Total referral and transaction fees 3 months after proposal - total referral and transaction fees three months before proposal) - (Total issuance three months after proposal - total issuance three months before proposal)