Telcoin Network Harvesting Rules
Telcoin Network: TEL Harvesting Rules
Validators are GSMA Operator Member, mobile network operators who stake TEL for proof-of-stake consensus, manage a Telcoin Network node to create and verify blocks to the blockchain, and harvest TEL issuance based on their pro-rata share of blocks secured each day.
Prior to the release of the main network and a quorum of 10 authorized validators, the TAO sets and enforces the rules and allocates TEL within Telcoin Network to be harvested by Validators. Afterwards, the Platform and Treasury Council will possess authority over and duties to enforce Telcoin Network rules using the TELIP process.
The following rules define and specify who may harvest what quantity of TEL from Telcoin Network over time based on what formula, and are subject to change based on governance decisions.
Telcoin Network Harvesting Rules: Overview
- Miner | Harvesting Activities | Y1 TEL Allocation | Basis for Income
- Validators | 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 proof-of-stake consensus. | Total: 200,000,000
Daily: 547,945.205 | Basis Formula
Pro-rata share of blocks secured to the Telcoin Network blockchain each day.
Position Rules
Validators
Role: Blockchain Security
Validators create and verify blocks to the Telcoin Network blockchain to enable decentralized transaction execution and settlement for Telcoin Platform users.
Platform and Treasury Councils
Role: Governance and management
The Platform and Treasury Councils, using the TELIP process, possess shared authority to set, enforce, and refine the rules for interacting with Telcoin Network, and they are responsible for providing improvements and for allocating TEL within Telcoin Network to be harvested by Validators according to those rules.
The TAO
Role: Construction and maintenance
As authorized, directed and financed by the Platform and Treasury Councils, the TAO is responsible for maintaining existing infrastructure, constructing new systems, and coordinating with third-parties to produce and administer public goods.
Further details: for more information about Validators and the relevant Telcoin Network organizations, review:
Eligibility and Authorization Rules
- Position | Required Attributes | Registration Process | On-going requirements | Exit
- Validators | Org Requirements: All GSMA Operator Member, Mobile Network Operators may participate.
Location Requirements: The entity must be located in a non-sanctioned country according to the United States OFAC/FINCEN sanctions list. | 1. Forum Proposal: Validator Authorization proposal to the Telcoin Forum.
2. CCIP: The TAO proposes the Validator to the Compliance Council.
3. Authorization: Compliance Council confirms (or rejects) the proposal.
4. Proof of Stake: Validator stakes TEL for proof-of-stake consensus (”PoS”) and begins producing blocks. | Proof of Stake: Validators must have a staked TEL balance for PoS at all times to continue harvesting TEL from Telcoin Network and to participate in governance. | Unstake TEL: Validators may exit their position at any time by removing their entire staked TEL balance.
- Further details: for more information about eligibility and authorization rules for Validators, reviewValidators: Eligibility and Authorization Rules
Authority Rules
Validators: Required and Authorized Actions
In order to harvest TEL issuance, Validators must:
- Stake TEL for proof-of-stake consensus on Telcoin Network.
- Manage a Telcoin Network node, participate in Proof of Stake consensus, create and verify valid blocks to the Telcoin Network blockchain.
Authorized Actions: TEL Issuance Allocation and Basis Formula
The quantity and formula used to calculate how much TEL issuance a Validator may harvest from the Platform over time using what technologies.
- 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 blockchain each day.
Technology Used: Private technologies used by Validators to harvest TEL from Telcoin Network
- TEL Consumption Use: Validators exchange TEL for other assets using TELx liquidity pools, and pay TEL gas fees on Telcoin Network to have their transactions included in blocks and secured to the blockchain.
- TEL Production and Harvesting Use: Staked TEL is required to participate in Proof of Stake consensus, ensuring honest computation at risk of stake slashing and an individual validator's stake weight relative to other validators determines their earning power.
- TEL Earning Power: The quantity of TEL staked by a validator determines the probability they will secure a block to the blockchain, increasing:
- TEL Harvesting Levels: The quantity of TEL issuance they earn over time.
- TEL Fees: The amount of fees they harvest from block production over time.
- TEL Revenue
- TEL Fees: Validators earn gas fees in TEL paid by consumers to have their transactions included in blocks and secured to the blockchain.
- TEL Issuance: Validators harvest TEL issuance flows from each block they secure to the Telcoin Network blockchain.
- TEL Governance Use
- Political Power: Validators’ power within their Miner Group in Telcoin Platform governance is based on their pro-rata share of TEL staked for PoS consensus on Telcoin Network. This influences their proposal and voting power in Council Member selection processes and constitutional-choice decisions that affect that governance system rules.
- Authorized Wallet Address: Validators participate in PoS, earn rewards, vote in governance and secure their validator master key from a wallet address that has been authorized by the Compliance Council.
- Node Infrastructure
- Storage requirements: At least 2TB (TLC NVMe recommended)
- Memory requirements: 64+ GB
- CPU requirements: 16+ cores (prioritize clock speed over core count)
- Network Bandwidth: 1Gbps download – sustained (not burstable) - static ip address and firewall
Infrastructure Involved: The Telcoin Network systems Validators interact with to produce, consume services and harvest TEL issuance.
- Infrastructure Type | Components
- Block Production Facilities
The blockchain systems involved in the production of blocks and other blockchain goods and services. | • Mempool Protocol: Narwhal
• Consensus Mechanism: Bullshark
· Ethereum Virtual Machine: Execute transaction data
• Quality-of-Service: Independent fee markets based on transaction categories
• Gas Tokens: TEL
• Bridges: Share digital assets across chains
· Immutable Distributed Ledger: A real time, transparent, cryptographically-secured and verifiable record of all transactions, ownership, and ownership history. - Storage Facilities: TEL
The facilities that store TEL inventories within the system prior to allocation, distribution, and extraction. | • Telcoin Network Distribution Safe: A temporary storage facility controlled by the TAO used to store and distribute TEL issuance to staking contracts for Validators to harvest during block production. - Extraction Facilities: TEL
Infrastructure involved in the calculation and extraction of TEL units from the system by miners. | • Telcoin Network Issuance Contract: Automated distributed issuance to validators on a per block basis. Stores TEL on main net that validators can harvest each time the produce valid blocks (block rewards). - TEL Destruction and Regeneration Facilities
Systems involved in the destruction and regeneration of TEL units to the TEL Treasury. | • TEL Burn Mechanism: Transfers a percentage of gas fees contained in each block to a burn contract, where any TEL sent to that address are destroyed and replenished in equal quantity to the TEL Treasury.
Authority over Telcoin Network 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.
Telcoin Network Maintenance and Construction Rules
Until the Platform and Treasury Councils alter the arrangement using the TELIP process, the TAO will construct and maintain existing Telcoin Network components. Any new construction will need to be financed and coordinated by the Platform and Treasury Councils using the TELIP process.