Telcoin Platform: Interactions Between Subsystems

Overview

The interactions between the infrastructure networks of the Telcoin Platform play a vital role in driving productivity, growth, and decentralization of the system as a whole and for each individual network production system. Positive feedback loops exist between different layers.

For instance, interactions on TAN have impacts on TELx and Telcoin Network in terms of volume and fee revenue. Similarly, interactions on TELx impact TAN and Telcoin Network, influencing liquidity, order size, and fee revenue. Interactions on Telcoin Network affect TAN and TELx through shared security, enhanced programmability, and sustained yield of TEL issuance for future generations through the destruction and regeneration of TEL units on the network.

• Interactions | Description
• TAN → TELx, Telcoin Network
  
  What impacts do interactions on TAN have on TELx and Telcoin Network? | • Volume: Telcoin Applications route user trades through TELx markets and transfers using Telcoin Network blockspace, paying fees.
  • Positive feedback loops: Increased fee revenue from consumption at the application layer drives increased production from miners at the lower levels and sustainability of TEL issuance in the TEL Treasury through Telcoin Network burn and regeneration.
• TELx → TAN, Telcoin Network
  
  What impacts do interactions on TELx have on TAN and Telcoin Network? | • Exchange: Application layer miners and users depend on TELx to produce a liquid, diverse network of markets to facilitate exchange demand.
  • Positive feedback loop: Increased liquidity across diverse markets over time increases the total order size available at efficient prices for users, driving increased usage at the application layer of the platform.
  • Aggregate Supply and Volume: TELx liquidity facilitates increased exchange activity on Telcoin Network, driving fee revenue from blockspace consumption.
  • Positive feedback loop: Increased fee revenue from liquidity pool exchange consumption drives increased fees from blockspace consumption to Validators. Increased fees on Telcoin Network drives sustainability of TEL issuance in the TEL Treasury through Telcoin Network burn and regeneration.
• Telcoin Network → TAN, TELx
  
  What impacts do interactions on Telcoin Network have on TAN and TELx? | • Security: Telcoin Network serves as an execution, settlement, and data availability layer for the whole platform. The decentralization and security of all layers, which depend on the blockchain to process transfers and secure the ledger, is a function of the decentralization and security of Telcoin Network.
  • Programmability: The Ethereum virtual machine is nested on the network, enabling the creation of programmable, automated digital goods and services (e.g. DeFi liquidity pools on TELx, staking contracts)
  • Sustained Yield: As the TEL Treasury regenerates based on Telcoin Network blockspace demand, all miners depend on Telcoin Network blockspace availability, production and demand in order to sustain issuance over time.