TAN: TEL Harvesting Activities and Benefits

TAN: 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 various actors and user groups to harvest TEL from TAN. We then provide a descriptive analysis of TEL harvesting levels across the various user groups, and propose evaluative criteria that could be used by to determine which outcomes the community would deem satisfactory.

Contextual Factors

TAN and TEL: Characteristics of the TAN system and the TEL benefits it generates.
Attributes of the Actors: The attributes of the community of TAN TEL Miners, including Developers and Stakers.
Governance System: The organizations and rules that structure and control TEL harvesting activities within TAN.

TAN: 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.

TAN Governance System: Relationship to Harvesting Activities

The TAN Council sets, enforces, and refines the day to day operational rules for interacting with the Telcoin Application Network rules, including setting TEL harvesting rules. The TAO, the Telcoin Association’s wholly-owned production and administration unit, services to produce and administer collective goods at the direction and financing of the Association and all of its Miner Councils.

TAN Council: Authority, and Decision-making Rules

TAN Council governs TAN harvesting rules using the TANIP process. The Platform and Treasury Council use the TELIP process to govern TEL Treasury distribution rules, which dictates the TEL available to be harvested on TAN.

Council | Representation | Process, Domain of Authority | Decision-making Rules
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

TAN: TEL Harvesting Rules

Merchant and Retail Stakers and Developers stake TEL, produce Platform adoption and mobile apps respectively, and each harvest 166.66M TEL from TAN in year one at a rate of 3.205M TEL per week according to rules that are set, enforced, and refined by the TAN Council and self-execute in code built into the system itself.

Developers: TEL Harvesting Rules

Produce mobile applications that integrate with the Telcoin Platform and enable users to access its services.

Eligibility and Authorization Rules: All GSMA members located in non-sanctioned jurisdictions who are approved by the Compliance Council, stake TEL on TAN, and deploy a compliant Telcoin mobile application may participate as a Developer.
TEL Allocation (Y1): Developers harvest from a flow of 166,666,666.66 TEL in year one at a rate of 3,205,128.205 TEL per week.
Basis Formula for Income: Pro-rata share of their mobile application’s (Referral fees + TELx exchange fees + Telcoin Network gas fees paid by users) vs other developers each week.
Maximum Weekly TEL Issuance: Developers may mine their accrued weekly issuance if their total staked TEL balance throughout the entire week is greater than their lifetime issuance earnings plus issuance income during the week.
- Formula: Total staked TEL > (TEL issuance income/ lifetime + TEL issuance income/ current week)
- Excess TEL Issuance: Any excess TEL which has not been mined from TAN due to lack of staked TEL will be distributed back to the TAN Council safe to be allocated by the TAN Council.

Stakers: TEL Harvesting Rules

Produce adoption of the Telcoin Platform as infrastructure for settling payments and other blockchain use cases.

Eligibility and Authorization Rules: All Telcoin mobile application customers who enter another user’s referral code and stake TEL on Telcoin Application Network may participate as Stakers.
Merchant Stakers
- TEL Allocation (Y1): 166,666,666.66 TEL in year one at a rate of 3,205,128.205 TEL per week.
- Basis: Pro-rata share of their (fees paid + their referred users’ fees paid) vs other merchant stakers each week.
Retail Stakers
- TEL Allocation (Y1): 166,666,666.66 TEL in year one at a rate of 3,205,128.205 TEL per week.
- Basis: Pro-rata share of their (fees paid + their referred users’ fees paid) vs other retail stakers each week.
All Stakers
- Maximum TEL Issuance: Stakers may mine their accrued weekly issuance if their total staked TEL balance throughout the entire week is greater than their lifetime TEL issuance earnings plus issuance income during the week.
- Excess TEL: Any excess TEL which has not been mined from TAN during the week will be distributed to the TAN Council safe to be allocated by the TAN Council.
- Time Slots: Each harvesting period lasts for 7 days starting and ending at 00:00 UTC time at the beginning of each week.
- Maximum TEL Issuance: Stakers may mine their accrued weekly issuance if their total staked TEL balance throughout the entire week is greater than their lifetime TEL issuance earnings plus issuance income during the week.
- Excess TEL: Any excess TEL which has not been mined from TAN during the week will be distributed to the TAN Council safe to be allocated by the TAN Council.
- Time Slots: Each harvesting period lasts for 7 days starting and ending at 00:00 UTC time at the beginning of each week.

TAN: TEL Harvesting Interactions

Miner | TEL Harvesting Activities | Participants | Y1 TEL Allocation | Basis formula for income | Maximum TEL Rewards
Developers | TAN: Mobile application development
Produce mobile apps which integrate with the Telcoin Platform and securely connect users to its services.

Stake TEL on TAN
Stake TEL in TAN staking contracts to harvest TEL. | All GSMA members located in non-sanctioned jurisdictions who are approved by the Compliance Council using the CCIP process, stake TEL on TAN, and deploy a compliant Telcoin mobile application may participate as a Developer. | Total: 166.66M
Flow: 3.2M per week | Pro-rata share of their mobile application’s (referral fees + TELx exchange fees + Telcoin Network gas fees paid by user base) vs other developers each week. | Developers may mine their accrued weekly issuance if their:
staked TEL balance > lifetime TEL issuance harvested plus TEL issuance income during the entire week
Merchant Stakers | TAN: Platform adoption
Use the system, market to and connect with their business, customer networks to establish the Telcoin Platform as infrastructure for settling payments.

Stake TEL on TAN
Stake TEL in TAN staking contracts to harvest TEL. | All Telcoin mobile application customers who enter another user’s referral code and stake TEL on Telcoin Application Network may participate as Stakers. | Total: 166.66M
Flow: 3.2M per week | Pro-rata share of their (fees paid + their referred users’ fees paid) vs other merchant stakers each week. | Stakers may mine their accrued weekly issuance if their:
staked TEL balance > lifetime TEL issuance harvested plus TEL issuance income during the entire week
Retail Stakers | TAN: Platform adoption
Use the system, market to and connect to their social networks to establish the Telcoin Platform as infrastructure for settling payments.

Stake TEL on TAN
Stake TEL in TAN staking contracts to harvest TEL. | All Telcoin mobile application customers who enter another user’s referral code and stake TEL on Telcoin Application Network may participate as Stakers. | Total: 166.66M
Flow: 3.2M per week | Pro-rata share of their (fees paid + their referred users’ fees paid) vs other retail stakers each week. | Stakers may mine their accrued weekly issuance if their:
staked TEL balance > lifetime TEL issuance harvested plus TEL issuance income during the entire week
Total | | | 500M | |

TAN: TEL Harvesting Outcome Indicators

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.

General Performance Indicators

Staked TEL: Total by Stakers and Developers for use in production, harvesting and governance processes
Number of Actors: Number of users, referred users, stakers, developers over time
Fees: Referral and transaction fees earned by stakers and developers over time
Buy-backs: Total TEL buy-backs from referral fees

Sustainability

Can the quantity of TEL issuance units available to be harvested by Developers and Stakers according to TAN 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
- (Total TEL burned on TAN - Total TEL issued to TAN)/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

Are TAN harvesting rules suitable to TAN Network conditions? Are the benefits obtained by TAN miners proportional to the amount of inputs required in the form of labor, material, or money?

Issuance Harvesting: Total issuance harvested < total fees
Indicators: Harvesting rules restricting time, place, technology and/or quantity of TEL units are related to local conditions. The benefits obtained by users from TAN, 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.

Fiscal Equivalence

Total costs to produce improvements < total fees earned by miners

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)