Telcoin

TEL Harvesting Activities: Overview

TEL Harvesting Activities: Overview diagram

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 that harvest TEL from the Telcoin Platform. We then provide a Platform-wide overview of the 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 Platform and TEL: Characteristics of the Telcoin Platform system and the TEL benefits it generates.
  • Attributes of the Actors: The attributes of the community of Telcoin Platform TEL Miners.
  • 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

Telcoin Network Harvesting Rules: GSMA Operator Member, mobile network operators stake TEL for PoS consensus on Telcoin Network, manage a validator node, and harvest TEL in year one from an allocation of 200M TEL per year, based on their pro-rata share of blocks secured to the blockchain. Telcoin Network harvesting rules are set initially by the TAO and then by the Platform and Treasury Councils.

  • Harvesting Rules
    • Validators: Secure the Telcoin Network blockchain.
    • Eligibility and Authorization Rules: All GSMA Operator Member, Mobile Network Operators members who are approved by the Compliance Council, stake TEL for proof-of-stake consensus and deploy, manage a node on Telcoin Network may participate as Validators.
    • Y1 TEL Allocation Formulas: Validators harvest from an allocation of 200,000,000 TEL per year at a rate of 547,945.205 TEL per day.
    • TEL Basis for Income Formula: Pro-rata share of blocks secured to the Telcoin Network blockchain each day.
    • Authority Over Harvesting Rules: The TAO possesses authority to alter and duties to enforce Telcoin Network harvesting rules while the network is still being developed, and after 10 validators are authorized and producing blocks on Telcoin Network, this authority and duties will transfer to the Platform and Treasury Councils using the TEL Improvement Proposal (TELIP) process.

TELx Harvesting Rules: Liquidity Miners produce DeFi markets, stake LP tokens in TELx, and harvest from a flow of 200M TEL in year one, pro-rata based on their share of staked liquidity, according to rules according to rules that are set by the TELx Council.

  • Liquidity Miners
    • Position Rules: Liquidity miners produce DeFi markets.
    • Eligibility and Authorization Rules: All users located in non-sanctioned jurisdictions who provide liquidity to TELx markets and stake their liquidity in TELx staking contracts, may participate as liquidity miners, harvest TEL rewards, propose and vote in Telcoin Platform governance.
    • Y1 TEL Allocation Formulas: Liquidity Miners harvest from an allocation of 200,000,000 TEL per year at a rate of 16.66M TEL per month.
    • TEL Basis for Income Formula: Pro-rata share of liquidity staked on TELx over time.
    • Authority Over Harvesting Rules: The TELx Council possesses authority to alter and duties to enforce TELx harvesting rules using the TELxIP process.

Telcoin Application Network 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, according to rules that are set by the TAN Council.

Developers: 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 user base’s:
    • (Referral fees + TELx exchange fees + Telcoin Network gas fees paid)/week vs other developers
  • 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: 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.
  • Authority Over Harvesting Rules: The TAN Council, using the TANIP process, possesses authority to alter and enforce TAN harvesting rules, and is responsible for ensuring TEL is allocated and harvested according to those rules.

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 909,090.90 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.

TEL Harvesting Levels: Overview

  • Actor | Activities | % | Y1 TEL Allocation | Basis formula for income | Eligible Participants
  • Validators | Telcoin Network: Blockchain security
    Manage a validator node to create and verify blocks of transactions to the Telcoin Network blockchain.

    Stake TEL on Telcoin Network
    Stake TEL on Telcoin Network to participate in PoS consensus. | 20.00% | Total: 200,000,000
    Flow: 547,945.205 per day | Pro-rata share of blocks secured to the Telcoin Network blockchain each day. | GSMA Operator Member, Mobile Network Operators members who are approved by the Compliance Council, stake TEL for proof-of-stake consensus and deploy, manage a node on Telcoin Network.
  • Liquidity Miners | TELx: DeFi liquidity provision
    Provide liquidity to TELx DeFi markets and enable users to exchange their assets in a decentralized, automated, self-custodial manner.

    Stake TEL liquidity on TELx
    Stake TELx liquidity provider tokens (LPTs) in TELx staking contracts to harvest TEL. | 20.00% | Total: 200,000,000
    Flow: 16,666,666.66 per month | Pro-rata share of liquidity staked on TELx over time. | TEL users located in non-sanctioned jurisdictions who provide liquidity to TELx markets and stake their liquidity in TELx staking contracts.
  • 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. | 16.66% | Total: 166,666,666.66
    Flow: 3,205,128.205 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. | 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.
  • Merchant Stakers | TAN: Platform adoption
    Use the system, market 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. | 16.66% | Total: 166,666,666.66
    Flow: 3,205,128.205 per week | Pro-rata share of their (fees paid + their referred users’ fees paid) vs other merchant stakers each week. | Corporate Telcoin mobile application customers who enter another user’s referral code and stake TEL on Telcoin Application Network.
  • Retail Stakers | TAN: Platform adoption
    Use the system, market 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. | 16.66% | Total: 166,666,666.66
    Flow: 3,205,128.205 per week | Pro-rata share of their (fees paid + their referred users’ fees paid) vs other retail stakers each week. | Individual Telcoin mobile application customers who enter another user’s referral code and stake TEL on Telcoin Application Network.
  • TAO | Production, Administration, Ecosystem Development
    Maintains, constructs the Telcoin Platform, facilitates the governance system, and drives ecosystem development | 5.00% | Total: 50,000,000
    Flow: Streamed each block | Financing the TAO’s purposes. | 5 elected members from Telcoin Holdings in the first term then selected by each Miner Group.
  • Council Members | Policy-making and Management
    Participate in decisions regulating the Telcoin Platform. | 3.00% | Total: 30,000,000
    Flow: Streamed each block | Streamed TEL issuance each block in which they own a Governance NFT. | When they are elected, Council Members are transferred a Council NFT which receives a stream of TEL each block.
  • TAO Legal & Org | Legal, Org, Code Audit
    Setting up the TAO, Association, and code audit. | 2.00% | Total: 20,000,000
    Flow: One-time airdrop | Legal and operational set-up costs. | Code audit firm and lawyers.
  • Total | | | 1,000,000,000 | |

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 TEL staked by miners for use in production, harvesting and governance processes
  • Number of Actors: Number of users, Miners over time
  • Fees: Fees earned by Miners over time

Sustainability

Can the quantity of TEL issuance units distributed from the TEL Treasury according to issuance distribution 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 Platform - Total TEL issued from Platform)/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.

Participation

How many miners are participating in each position?

  • 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 TEL Treasury distribution levels suitable to Platform conditions? Are the benefits obtained by 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. (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 miners from the Platform, 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
TEL Harvesting Activities: Overview