Governance
TAN: Production and Consumption Activities and Benefits
TAN Production 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 Telcoin Application. 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
- Telcoin Application Network and TEL: Characteristics of the TAN system and the products it generates
- Attributes of the Actors: The attributes of the community of TAN TEL miners, including Developers and Stakers, and consumers.
- Governance System: The organizations and rules that structure and control TEL operational 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.
Attributes of the System: Telcoin Application Network and TEL
Resource System: Telcoin Application Network and TEL
The resource system or facility involved in the generation of goods and services. The Telcoin Application Network “TAN” is a network of mobile applications and smart contracts nested on top of TELx and Telcoin Network as a mobile access layer to the Telcoin Platform, enabling users to access and the products and services it generates.
TAN: Sector, Infrastructure
The characteristics of the resource system involved in generating benefits. TAN, the application layer of the Telcoin Platform, is a network of mobile applications that are integrated with the Telcoin Platform and enable users to access its services.
Sectors: Telecom, Mobile Financial Services and Blockchain Wallets
- TAN mobile applications are self-custodial, blockchain wallets produced by GSMA members in the telecommunications industry to service their customers with superior, mobile financial services and other blockchain products.
Infrastructure: Application infrastructure, which are mobile systems that are produced and governed by developers and must meet certain standards, and network infrastructure, which consists of TEL storage, distribution, and extraction facilities.
- Component | Description
- TAN Application Infrastructure
Mobile application systems that are required to be put into place and maintained by Developers for users. | Telcoin Mobile Application: iOS or Android mobile applications built on the Telcoin Platform including
User Interface to the Telcoin Platform: An intuitive interface and system connected to TELx and Telcoin Network services.
Banking Infrastructure: Including at least one-fiat on and off-ramp for stablecoins.
Staker Capabilities: Staker production, harvesting, and governance functionality in place for users to participate as stakers.
Secure-Self Custody Implementation: a secure, multi-signature or multi-party computation wallet implementation for users.
Trade Router: Connecting the app to TELx markets for exchange.
KYC/AML systems: Verifying the identity of users to ensure 1 user 1 account and compliance with local laws - TAN Network Infrastructure
The technological systems involved in the creation, storage, distribution, and extraction of TEL issuance and other benefits on TAN, managed by the TAN Council. | Storage Facilities: TAN Council and TAN Distribution gnosis safes
Distribution Facilities: TAN Council Telcoin-Distributor, TAN Issuance Calculation Script
Extraction Facilities: Staking contracts - TAN Platform Infrastructure
The underlying blockchain systems that TAN depends on to function. | TELx: Miners and consumers at the application layer depend on TELx and other adjacent markets to supply and service exchange demand with liquid, decentralized financial markets.
Telcoin Network: Telcoin network serves as the execution and settlement layer for application layer users. The blockchain enables application users to transfer assets through a peer to peer network, to transact peer to contract using on-chain programs (”smart contracts”), and to verify their ownership and transaction history at any time by accessing the open, immutable, distributed ledger the network generates.
Adjacent Markets: The other blockchain networks, liquidity pools, and other adjacent markets on the Platform serving as infrastructure for Telcoin mobile applications to offer products to their customers.
Productivity of System (TEL): 1B TEL distributes from the TEL Treasury to TAN in year one to be allocated by the TAN Council, harvested by Developers and Stakers, and used to finance system improvements and maintenance.
Productivity of System (Mobile Services): The total supply of mobile and blockchain services on the network, the total transaction volume and fees paid to access the Telcoin Platform, including to transact on TELx and Telcoin Network, using TAN mobile applications, and the total transaction fees paid to Developers and referral fees paid to stakers over time.
Learn more: Telcoin Application Network (TAN)
Resource Products
Telcoin Application Network: Mobile Services
A network of mobile apps that enables users to access the Telcoin Platform and its services, including secure self-custody, decentralized digital asset exchange and on-chain FX, peer-to-peer transfers, and other services provided by Application Developers through their applications.
Learn more:
TAN Actors: Attributes
Application Developers (“Developers”)
Role: Mobile application development
GSMA members who stake TEL on TAN and produce mobile applications that integrate with the Telcoin Platform and connect users to its services and each other through the system. They earn transaction fees from consumers, harvest TEL based on their mobile user base’s pro-rata share of adoption of the Telcoin Platform, and participate with others in their Miner Group in Telcoin Platform Governance based on their pro-rata share of staked TEL on TAN by Developers.
Benefits: Transaction Fees
- Transaction Fees: Income from transaction fees paid by their mobile customers.
- Frequency: Each time users transact through Telcoin products and pay fees.
- Fee Percentage: Developers determine their own fee schedules.
- Basis for Fee Income: Transaction fee minus referral fee earned by Staker.
- Non-referred users: If the user has not been referred by a Staker, the Developer earns the entire transaction fee.
- Referred users: If the user has been referred by a Staker, the Developer earns the base transaction they charge minus the referral fee rate.
Technologies Used: Private technologies Developers use to harvest TEL from TAN.
- TEL Consumption Use: Developers exchange TEL for other assets using TELx and use TEL to pay gas fees on Telcoin Network in order to have their and their user base’s transactions included in blocks and secured to the blockchain
- TEL Production and Harvesting use: Developers must stake TEL to participate, the quantity of TEL an individual developer has staked determines their earning power, and Developers earn TEL fees and harvest TEL issuance.
- TEL Earning Power: The quantity of TEL staked by a Developer determines the quantity of TEL that is available for them to harvest from TAN.
- Maximum weekly TEL issuance: Developers may mine their accrued weekly TEL issuance from TAN if their: Total staked TEL > (TEL issuance income/ lifetime + TEL issuance income/ current week)
- TEL Revenue
- TEL Fees: Developers earn TEL fees when their customers transact and pay fees using TEL.
- TEL Issuance: Developers harvest TEL issuance from TAN staking contracts.
- TEL Governance Use
- Political Power: Developers’ power within their Miner Group in Telcoin Platform governance is based on their pro-rata share of TEL staked on TAN by all Developers. This influences their proposal and voting power in Council Member selection processes and constitutional-choice decisions that affect that governance system rules.
- Authorized wallet: Developers stake TEL, harvest TEL issuance and vote in governance from a wallet address that has been authorized by the Compliance Council.
- Application Infrastructure: Mobile application systems that are required to be put into place and maintained by Developers for users to access the Platform and its services. Each developer’s Mobile Application must meet certain standards, set, enforced, and refined by the TAN Council, in order for them to continue harvesting TEL from TAN.Application Requirements
- Telcoin Mobile Application: iOS or Android mobile applications built on the Telcoin Platform including:
- An Interface Connected to the Telcoin Platform: An intuitive interface connecting users to TELx and Telcoin Network.
- Banking Infrastructure: Including at least one-fiat on and off-ramp for stablecoins.
- Staker Capabilities: Staker referral code, harvesting, and governance functionality in place for users to participate as stakers.
- Secure-Self Custody Implementation: A secure, multi-signature or multi-party computation wallet implementation for users.
- Trade Router API: Connecting the app to TELx markets for exchange.
- KYC/AML systems: Verifying the identity of users to ensure 1 user 1 account and compliance with local laws
- Telcoin Mobile Application: iOS or Android mobile applications built on the Telcoin Platform including:
Infrastructure Involved: The TAN systems Developers interact with to produce, consume services and harvest TEL issuance.
- Component, Function | Description
- Storage Facilities
The facilities that store TEL inventories within the system prior to allocation, distribution, and extraction. | TAN Council Gnosis Safe: The primary stock of TAN issuance which receives, stores, and generates a flow of TEL issuance to be harvested by Developers and Stakers.
TAN Distribution Safe: Multi-signature wallet used to store the inventory of TEL units and distribute issuance to staking contracts to be harvested by Applications, Miners, Users during the first 13 weeks. - Distribution Facilities
Infrastructure involved in the distribution of TEL issuance from storage facilities to other facilities for later use and extraction facilities to be harvested by Miners. | TAN Council Telcoin-Distributor: Gnosis Safe module allowing the TAN Council to execute transactions proposed by a single council member without requiring a snapshot vote. This is useful for regular maintenance tasks, like topping up the TAN Staking Contract.
TAN Issuance Calculation Script: Calculates issuance allocation using an off-chain database and script. - Extraction Facilities
Infrastructure involved in the calculation and extraction of TEL units from the system by miners. | Staking Contracts: TEL staking contracts used by Stakers and Developers to stake TEL, allocate, and extract TEL issuance and fees.
Stakers
Role: Platform adoption
Stakers are Telcoin mobile application customers who stake TEL, market and connect with their networks to establish the Telcoin Platform as a shared infrastructure for settling payments. They earn a percentage of their referred users’ fees in TEL, harvest TEL from TAN based on their network’s adoption of the Platform, and participate with others in their Miner Group in governance based on their pro-rata share of TEL staked on TAN by Telcoin mobile app users.
Benefits: TEL Referral Fees
- TEL Fees: Income from referral feesReferral Fees: Stakers earn a percentage of all of their referred users’ transaction fees, distributed in real-time, in TEL, based on the quantity of TEL they have staked.
- Frequency: Each time their referred users transact through Telcoin Platform products or services using a TAN mobile application.
- An example: referral fee rate schedule set by Telcoin Holdings Pte Ltd. Developers are free to set their own referral fee rates.
- TEL Staked | Referral Fee Rate
- 10-9,999 | 15%
- 10,000 | 22.5%
- 25,000 | 25%
- 50,000 | 28%
- 100,000 | 30%
- 250,000 | 32%
- 1,000,000 | 34%
- 5,000,000 | 36%
- 25,000,000 | 38%
- 50,000,000 | 40%
- 100,000,000 | 42.00%
- Fee Currency: Stakers always receive referral fees in TEL. If the referred user pays fees in another asset, that asset will automatically buy TEL from TELx and distributes to the Staker in the same transaction.
Technologies Used: Private technologies used by Stakers to harvest TEL from TAN.
- TEL Consumption Use: Stakers exchange TEL for other assets using TELx, use TEL to settle payments, to access other blockchain products available to mobile users, and use TEL to pay gas fees on Telcoin Network in order to have all of their transactions included in blocks and secured to the blockchain.
- TEL production and harvesting use: Mobile application users must stake TEL on TAN to participate in the role, the quantity of TEL staked by an individual participant determines their earning power. They earn referral fees in TEL and harvest TEL issuance from TAN.
- TEL Earning Power: The quantity of TEL staked by a participant determines the quantity of TEL that is available for them to harvest from TAN.
- Maximum weekly TEL issuance: Stakers may mine their accrued weekly TEL issuance from TAN if their: Total staked TEL > (TEL issuance income/ lifetime + TEL issuance income/ current week)
- TEL Referral fee rate: The quantity of TEL staked by an individual actor outputs a referral fee rate that determines what percentage of their referred users’ transaction fees they earn. Additionally, stakers earn referral fees in TEL and harvest issuance in TEL.
- TEL Revenue
- TEL Fees: Stakers harvest TEL from TAN and earn a percentage of their referred users’ fees in TEL. If their referred user transacts and pays a transaction fee in a token other than TEL, the referral fee first exchanges for TEL on TELx then distributes to the staker, all in the same transaction.
- TEL Issuance: Stakers harvest TEL issuance from TAN staking contracts.
- TEL Governance Use
- Political Power: Stakers’ power within their Miner Group in Telcoin Platform governance is based on their pro-rata share of TEL staked on TAN by all mobile users. This influences their proposal and voting power in Council Member selection processes and constitutional-choice decisions that affect that governance system rules.
- Mobile phone, Telcoin Application: Stakers access, store and participate in all interactions with the system using a Telcoin mobile application from their unique, multi-signature wallet on either an iOS or android mobile devices.
- Referral codes: Stakers market the platform and refer users to their network by sharing their unique referral code, which can be shared via QR code or a link. In order to participate, Stakers must first enter an existing user’s referral code.
Infrastructure Involved: The TAN systems Stakers interact with to produce, consume services and harvest TEL issuance.
- Component | Description
- TAN Application Infrastructure
Mobile application systems that are required to be put into place and maintained by Developers for users. | Telcoin Mobile Application: iOS or Android mobile applications built on the Telcoin Platform including
User Interface to the Telcoin Platform: An intuitive interface and system connected to TELx and Telcoin Network services.
Banking Infrastructure: Including at least one-fiat on and off-ramp for stablecoins.
Staker Capabilities: Staker production, harvesting, and governance functionality in place for users to participate as stakers.
Secure-Self Custody Implementation: a secure, multi-signature or multi-party computation wallet implementation for users.
Trade Router: Connecting the app to TELx markets for exchange.
KYC/AML systems: Verifying the identity of users to ensure 1 user 1 account and compliance with local laws - TAN Network Infrastructure
The technological systems involved in the creation, storage, distribution, and extraction of TEL issuance and other benefits on TAN, managed by the TAN Council. | Storage Facilities: TAN Council and TAN Distribution gnosis safes
Distribution Facilities: TAN Council Telcoin-Distributor, TAN Issuance Calculation Script
Extraction Facilities: Staking contracts - TAN Platform Infrastructure
The underlying blockchain systems that TAN depends on to function. | TELx: Miners and consumers at the application layer depend on TELx and other adjacent markets to supply and service exchange demand with liquid, decentralized financial markets.
Telcoin Network: Telcoin network serves as the execution and settlement layer for application layer users. The blockchain enables application users to transfer assets through a peer to peer network, to transact peer to contract using on-chain programs (”smart contracts”), and to verify their ownership and transaction history at any time by accessing the open, immutable, distributed ledger the network generates.
Adjacent Markets: The other blockchain networks, liquidity pools, and other adjacent markets on the Platform serving as infrastructure for Telcoin mobile applications to offer products to their customers.
Telcoin Mobile Application Users
Participants, Eligibility and Authorization: According to rules determined by each Developer, anyone who downloads and fully registers using KYC can participate as a user on a Telcoin mobile application.
- Overview: There are three types of users who consume products and services on Telcoin applications.
- Users: Individuals(or corporations) who download and fully register their information using KYC, but do not use a staker’s referral link.
- Referred Users: Individuals(or corporations) who download and fully register their information using KYC, integrate a staker’s referral link, but do not have a staked TEL balance.
- Stakers: Individuals(or corporations) who download and fully register their information using KYC, integrate a staker’s referral link, have a staked TEL balance, and drive adoption by sharing their referral link.
Activities & Benefits: Transacting cryptoassets at any time using decentralized systems, storing cryptoassets using self-custody without relying on third party custodians to secure their property.
Transacting cryptoassets
- Activity: Transacting across the Telcoin suite of DeFi products, such as decentralized cryptoasset exchange, paying fees on each transaction.
- Example: A user trades 1,000 USDC for 1,000,000 TEL, paying 2.5 USDC in fees.
- Benefits: Self-custodial, mobile access to the Telcoin suite of user-owned decentralized financial products at any time. The ability to trade cryptoassets around the clock, without relying on counter-parties to match orders and custody assets.
- Costs: Users pay fees each time they make a trade or other DeFi transaction.
Technology Used: Telcoin application, mobile phone, TEL and other assets, bank account.
- Telcoin Application: In order to access Application layer benefits, users must download and register on a Telcoin Application.
- Mobile Phone: Telcoin Applications are available iOS or Android mobile devices.
- Banking: In available countries, users can convert local fiat to local fiat-backed stablecoins.
Infrastructure Involved: TAN, TELx, Telcoin Network
- TAN: Mobile application interface, wallet, trade router
- TELx: Underlying marketplace powering Telcoin Application products.
- Telcoin Network: Underlying blockchain architecture securing private property rights over digital assets and enabling on-chain protocols and applications such as TELx.
TAN Governance System: Attributes
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: Production, Consumption Interactions and Fees
- Actors | Benefit | Activity | Flow of Benefits | Basis for Income
- Developers | Income from transaction fees | Developing a Telcoin application, and earning fees on each trade. | Developers earn fees on every transaction type they charge. | Transaction fees are determined by each Developer.
- Stakers | Income from TEL referral fees | Staking TEL, referring new users, and earning TEL fees each time referred users pay fees. | Earn TEL referral fees each time their referred users transact. | Based on their TEL staked and referral fee rate.
- Users | Mobile, self-custodial access to DeFi products at any time. | Transacting, storing, and sending digital assets. | Users settle payments or receive a new asset each time they make an exchange transaction. |
Evaluative Criteria
General Performance Indicators: Staked TEL, actors, volume, fees, buy-backs
- 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.
- Renewability Formula
Participation: How many Developers and Stakers have staked TEL on TAN?
- Definition and Importance
- Definition: Measured by the number of actors and their level of involvement in associated processes.
- Importance: Participation tends to increase legitimacy; co-production can be especially effective form of participation.
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?
- Definition and Importance
- Definition: The rules-in-use allocate benefits proportional to inputs required.
- 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.
- 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.
- Issuance Harvesting: Total issuance harvested < total fees
- Fiscal Equivalence: Total costs to produce improvements < total fees