Telcoin

Telcoin Network: Production and Consumption Activities and Benefits

Telcoin Network: Production and Consumption Activities and Benefits diagram

Telcoin Platform Production and Consumption: 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 produce and consume Telcoin Platform goods and service. We then provide a Platform-wide overview of the productive and consumptive interactions across the various user groups and sub-systems of the Telcoin Platform, 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.

Telcoin Platform Production and Consumption: 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.

Resource System: Telcoin Network

The characteristics of the resource system involved in generating benefits. Telcoin Network is an EVM-compatible, public blockchain secured by GSMA Operator Member, Mobile Network Operators globally using proof of stake consensus. The system serves as underlying blockchain architecture securing private property rights over digital assets and enabling on-chain protocols and applications such as TELx.

Telcoin Actors: Attributes

Validators

Role: Blockchain Security
GSMA Operator Member, mobile network operators (MNOs) who manage nodes on Telcoin Network, earn TEL gas fees and issuance from each time they secure a block to the blockchain, and participate with others in their Miner Group in governance.

  • 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.

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.
  • Outcomes: Total number of validators, fees per block, total TEL burned, total users, total transaction volume.
  • Cost-Benefit Analysis: (Total costs to operate a full node + total fees earned + total TEL harvested)/time

Users

Role: Transact using Telcoin Network blockspace, verify their ownership activity, and store their assets using Telcoin network.

Participants, Eligibility and Authorization: Anyone with cryptoassets, an internet connection, and web3 wallet may transact using Telcoin Network.

  • Overview: All platform miners and anyone who transacts generally using Telcoin Network may be a “user”.
    • Users: Individuals(or corporations) who transact using Telcoin Network blockspace.
    • Developers: Use and rely on Telcoin Network in consumption, production, harvesting and governance processes.
    • Stakers: Use and rely on Telcoin Network in consumption, production, harvesting and governance processes.
    • Liquidity Miners: Use and rely on Telcoin Network in consumption, production, harvesting and governance processes.
    • Validators: Use and rely on Telcoin Network in consumption, production, harvesting and governance processes.

Activities, Benefits, Costs: Transacting cryptoassets using decentralized applications, protocols, and the blockchain generally, benefitting from self-custody, instant and affordable transaction processing, and automated, immutable record-keeping.

  • Activity: Users transact on the blockchain, paying gas fees in TEL in order to access blockspace, have their transaction processed in a block and secured to the blockchain ledger by validators.
    • Example: A user sends 1,000 TEL to a friend, paying gas to have their transaction included in the next block and secured to the blockchain. .
  • Benefits: Self-custody, decentralized, fast, global transactions at any time without relying on third parties.
  • Costs: Users pay gas fees in TEL each time they transact using Telcoin Network.

Technology used: TEL, web3 wallet, internet connection

  • TEL: Users need TEL in order to pay gas fees and have their transactions included in a block and secured to the blockchain by validators.
  • Web3 Wallet: Users need an EVM-compatible wallet to securely store and transact assets using their public-private key pair.
  • Internet Connection: Users need an internet connection to access the Telcoin Network and its benefits.

Infrastructure involved: Telcoin Network

  • Telcoin Network: Underlying blockchain architecture securing private property rights over digital assets and enabling on-chain protocols and applications such as TELx.

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 including Telcoin Network, and coordinating with third-parties to produce and administer collective goods on behalf of the Telcoin Association.

Telcoin Network Governance System: Attributes

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.

  • Councils | Representation | Process, Domain of Authority | Decision-making Rules
  • 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

Interactions and Outcomes

  • Actors | Benefit | Activity | Flow of Benefits | Basis
  • Validators | Income from blockchain transaction fees (“gas”) | Stake TEL to participate in proof of stake consensus (PoS), operate a validator node to create and verify new blocks to the Telcoin Network blockchain. | Earn gas fees, paid in TEL by users to transact using the network, from each block they secure to the Telcoin Network blockchain. | Base Fee: A portion of gas fees in each block are regenerated by Telcoin Network in equal quantity to the TEL Treasury.

    Priority Fee: Users can choose to pay an extra “fee” that increases the likelihood that their transaction is included in the next block.
  • Users | The ability to self-custody and transact digital assets at any time without relying on intermediaries. | Transacting on the blockchain, paying gas fees in TEL. | Blocks per second: 1 block every six seconds

    Transactions per second: 5,000 | Users pay gas fees based on the current gas price. valued by the market based on supply and demand.

Outcomes

Evaluative Criteria

General Performance Indicators: Staked TEL, volume, fees, TEL burns, gas costs

  • Staked TEL: Total by Validators for use in production, harvesting and governance processes
  • Fees: Gas fees earned by Validators over time
  • Gas Costs: The costs consumers must pay in order to have their transactions included in a block and secured to the blockchain.
    • Too low: If gas costs are too low, the incentive to secure the network is lower.
    • Too high: If gas costs too high, users will choose to transact using other blockchains.
  • TEL Burns: Total TEL burnt from usage of blockspace on Telcoin Network and regenerated to the TEL Treasury.

Sustainability: Can the quantity of TEL issuance units available to be harvested by Validators according to Telcoin Network 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 Telcoin Network - Total TEL issued to Telcoin Network)/time
      • Note: A percentage of gas fees contained in each block secured to the Telcoin Network blockchain are “burnt” from the circulating supply and replenished to the TEL Treasury in equal quantity to the TEL Treasury to be harvested by future generations of miners.

Participation: How many Validators have staked TEL for validation and are actively producing blocks on the Telcoin Network?

  • 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.
  • Indicator
    • Decentralization: Total number of authorized validators with a staked TEL balance, actively producing blocks to the Telcoin Network Blockchain.
    • Importance of Blockchain Decentralization: The more validators actively producing blocks, the more decentralized the system. The more decentralized the system is, the more secure users’ property rights are from censorship.

Proportional Equivalence: Are Telcoin Network harvesting rules suited to Telcoin Network conditions? Are the benefits obtained by Validators proportional to the amount of inputs required in the form of labor, material, or money?