Telcoin

TELx Improvement Proposal (TELxIP) Process

TELxIP: Overview

The following section describes the process used by the TELx Council, the TELxIP, to set, enforce, and refine TELx operational rules.

TELxIP Proposal Authors

  • TELxIP Forum Channel: Any registered member of the Telcoin forum may submit a TELxIP to the TELxIP forum channel for review by the community
  • TELx Council Snapshot: All TELx Council members holding a TELxNFT, Telcoin Association Operations UAB (TAO) members or other designated authors as determined by the Miner Assembly may submit TELxIP proposals to the TELx Council snapshot for voting.
  • Veto: All Compliance Council and TAO members, using the CCIP process, may submit TELxIP veto proposals to the Compliance Council snapshot at any point during the formal voting process and within 72 hours afterwards.

TELxIP: Voters

  • TELx Council: All TELx Council members holding a TELxNFT may vote on a TELxIP.
  • Compliance Council: All Compliance Council members holding a CCNFT may vote to veto a TELxIP proposal using the CCIP process.

TELxIP: Implementation units

  • TELx Council: Responsible for instructing, coordinating, or administering the implementation of new policies and procedures internally or with third-parties.
  • TAO: At the request of the TELx Council, serves to maintain and alter existing components, assists with the coordination of third parties to construct new facilities, and documents the outcome of TELxIP proposals on Telcoin.org.

TELx Governance System: Attributes

TELx Council

Role: Governance and management

The TELx Council is the local governance organization with authority to set, enforce, and refine the rules for interacting with TELx using the TELxIP process, and they are responsible for providing improvements and for allocating TEL within TELx to be harvested by liquidity miners according to those rules.

TELxIP: Authority and Decision-making Rules

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

TELxIP: Authority Rules

  • TELx Harvesting Rules: Who is allowed to harvest units on TELx; the timing, quantity, location and technology used to harvest issuance on TELx.
    • Example: A proposal to allocate issuance from an existing liquidity pool to a new liquidity pool.
  • TELx Provisioning and Development: Improvements that provide for the construction and maintenance of TELx components and facilities as determined by the TELx Council.
    • Example: A proposal to create a new staking contract that allocates issuance and coordinates with the TAO or another third party as stipulated in the proposal, to implement the upgrade.
  • TELx Communication and Information Rules: Proposals that add new or alter existing communication and information systems including TELx section of the Telcoin Discord, TELx.network, and the scheduling of periodic community discussions.
    • Example: A proposal to add a ‘gated channel’ on the TELx section of the Telcoin Discord, requiring users to verify their staked TELx LPTs balance in order to access the channel.
  • TELx Issuance Storage & Distribution Mechanisms: Proposals that alter the infrastructure used to store and distribute TEL issuance from the TELx Council safe.
    • Example: The TELx Council votes to use an automated smart contract system to distribute TEL to staking contracts periodically instead of via airdrop.

TELx Harvesting Rules

  • 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 200M 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.

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 over time, according to rules according to rules that are set by the TELx Council.

TELxIP: Process

  1. TELxIP Forum Proposal: Forum members submit a proposal to TELxIP channel on the Telcoin forum.
  2. TELx Council Proposal: A TELx Council, Telcoin Association Operations UAB (TAO) member, or other designated author on the TELx Council snapshot page decides to submit the proposal to the TELx Council Snapshot for voting.
  3. TELx Council Vote: The TELx Council must vote with 5/6 approval within 120 hours (5 days) from snapshot proposal submission, or else the proposal will not pass.
    1. Approval Rate: 5/6
    2. Duration: 120 hours (5 days) If the proposal receives at least 5/6 approval within 5 days of submission, it is affirmed.
  4. Compliance Council Veto Proposal: At any point during the TELxIP voting process and within 72 hours after it has been affirmed by the TELx Council, Compliance Council or TAO members may submit a veto proposal to the Compliance Council snapshot using the CCIP process.
  5. Compliance Council Vote: The Compliance Council must vote to veto the proposal within 72 hours after it is approved by the TELx Council, or else the proposal will be approved.
    • Approval (Veto) Rate: 3/4
    • Duration: 72 hours (3 days)
  6. Implementation:
    1. Social: The TELx Council either implements the proposal itself or works with the TAO or other third parties to implement the update.
    2. TEL Transfers: TEL is transferred from the TELx Safe to the intended address as a result of the affirmation of the proposal.
  7. Documentation: The Proposal Author from the TELx Council coordinates with the TAO (or another administrator as determined by the TELx Council) to update Telcoin.org TELxIP documentation.

TELxIP: Process

  • Proposal Affirmed: If the proposal is affirmed through the TELxIP process, it will be implemented and documented according to the specification outlined in the proposal.
  • Proposal Rejected: If the proposal is rejected by the TELx Council, the dissenting members must provide a rationale as to (1) why it failed to meet their decision-making criteria and (2) constructive feedback to help modify the proposal to meet the criteria provided in the rationale.
  • Proposal Vetoed: If the proposal is vetoed by the Compliance Council, the dissenting members must provide a rationale as to (1) why it failed to meet their decision-making criteria and (2) constructive feedback to help modify the proposal to meet the criteria provided in the rationale.

Outcomes and Feedback

  • Proposal Affirmed: If the proposal is affirmed through the TELxIP process, it will be implemented and documented according to the specification outlined in the proposal.
  • Proposal Rejected: If the proposal is rejected by the TELx Council, the dissenting members must provide a rationale as to (1) why it failed to meet their decision-making criteria and (2) constructive feedback to help modify the proposal to meet the criteria provided in the rationale.
  • Proposal Vetoed: If the proposal is vetoed by the Compliance Council, the dissenting members must provide a rationale as to (1) why it failed to meet their decision-making criteria and (2) constructive feedback to help modify the proposal to meet the criteria provided in the rationale.

Evaluative Criteria

Consistency with Shared Values: Is the proposed improvement consistent with the the Mission, Vision, Values defined in Article 4.1 (a-c) of the Telcoin Association Constitution?

  • Overview: The Telcoin Association Constitution is a living, breathing document subject to indefinite adaptation by the Miner Assembly. The mission, vision, and values, collectively (’Mission’) found in Article 4.1(a, b, c) serves as a moral basis used by Miners to interpret and determine what actions and outcomes are acceptable in governance processes.

Feasibility: Technical, Economic, Financial, Legal, Political

  • Technical Feasibility: Can it be done? Is the potential course of action within the real of possibilities given existing knowledge and technical capabilities?
  • Economic Feasibility: Is it worth doing? Will the expected benefits to be derived from any course of action exceed the expected costs including the cost of other opportunities foregone? If this criterion can not be met, a course of action will leave people worse off than better off.
  • Financial Feasibility: Can sufficient revenues be generated with reference to a proposed course of action to cover expenditures?
  • Legal Feasibility: Is a proposed program of action lawful? Is the proposed program within the legal competence of an entrepreneur to undertake on his own authority?
  • Political Feasibility: Can the appropriate decisions be sustained?

General Performance Indicators: Liquidity, staked liquidity, actors, volume, fees, buy-backs

  • Liquidity: Total liquidity provided to the TELx marketplace and in each market over time.
  • Staked Liquidity: Total liquidity provided to the TELx marketplace and staked by liquidity miners over time.
  • Number of Actors: Number of users, liquidity miners over time
  • Volume: Total volume transacted through the TELx marketplace and in each market over time.
  • Fees: Total fees paid to liquidity miners over time

Sustainability: Can the quantity of TEL issuance units available to be harvested by Liquidity Miners according to TELx 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 TELx - Total TEL issued to TELx)/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: To what extent are (1) the community of local miners and (2) the TELx Council and its members participating in co-production and deliberation processes?

  • 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.
  • Indicators: Local Miners and TELx Council
    • Local Miners: Co-production and deliberation
      • Co-Production: The number of Miners with staked TELx liquidity in Miner production processes,
      • Deliberation: The number of voters in council member selection processes as measured by quorum rates and the general participation of Miners in discussions related to specific improvement proposals.
    • TELx Council: Co-production and deliberation
      • Co-Production: The number of TELx Council Members with TELx liquidity staked in production processes on TELx (optional public disclosure).
      • Deliberation: The number of TELx Council members who vote on TELxIP proposal(s) as measured by quorum rates and the general participation by each TELx Council member in discussions with the community related to specific proposals.

Economic Efficiency: How economically efficient is the proposed improvement as measured by the magnitude of the change in the flow of net benefits associated with an allocation or reallocation of resources?

  • Definition and Importance
    • Definition: Measured by the magnitude of the change in the flow of net benefits associated with an allocation or reallocation of resources.
    • Importance: The concept of efficiency often plays a central role in studies estimating the benefits and costs or rates of return to investments that are often used to determine the economic feasibility or desirability of public policies. (E. Ostrom, Understanding Institutional Diversity, 66)
  • Indicators
    • (Net Increase in Benefits over time - Net Increase in Costs over time)
      • E.g. (Total referral and transaction fees 3 months after proposal - total referral and transaction fees three months before proposal) - (Total issuance three months after proposal - total issuance three months before proposal)

Legitimacy: Do miners view the deliberation process undertaken by the TELx Council related to a particular TELxIP as legitimate?

  • Definition and Importance
    • Definition: Legitimacy as seen by participants in decision processes.
    • Importance: Lack of legitimacy as seen by participants may lead to conflict between actors and reduce participation rates.
  • Indicators
    • Miner Social: Intensity of preferences opposed to an IP as demonstrated on the forum proposal, in the discord, and other discussions.
    • Delegations: The number of liquid delegations proposals submitted by miners to replace Council Members in relation to specific IPs and the resulting outcomes.
    • Veto: The number of Veto proposals and the voting outcome by the Compliance Council in relation to a IP.
    • Miner Council: The date of a proposal submission, the level of deliberation undertaken between council members and with the community.

Proportional Equivalence: Are TELx harvesting rules suitable to TELx Network conditions? Are the benefits obtained by TELx 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.(Understanding Institutional Diversity, 262-3, E. Ostrom).
    • 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 users from TELx, 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

Accountability: Are the TELx Council and its members accountable to Miner Groups concerning the policies and rules they choose?

  • Definition and Importance
    • Definition: When evaluating collective-choice or constitutional-choice levels, one can ask whether officials are accountable to citizens concerning the policies and rules chosen.
    • Importance: Without accountability, actors can engage in the various opportunistic, strategic behaviors. Achieving accountability requires that information about the preferences of citizens be available to decision makers.
  • Indicators: The TELx Council and its members must be accountable to Miners concerning the rules and improvements they implement.
    • Information-sharing: The community has numerous forums and ample time within deliberation processes to share their preferences with Council members.
    • Enforcement Authority: If the TELx Council proposes to implement something the community of Miners disagrees with, Miners may submit liquid delegation proposals to replace representatives at any time.
TELx Improvement Proposal (TELxIP) Process