Governance
TELx: TEL Harvesting Activities and Benefits
TELx 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 TELx. We then provide a an overview of TEL harvesting activities and benefits, and propose evaluative criteria that could be used by to determine which outcomes the community would deem satisfactory.
Contextual Factors
- TELx and TEL: Characteristics of the TELx system and the TEL benefits it generates.
- Attributes of the Actors: The attributes of the community of TELx 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.
TELx Governance System: Relationship to Harvesting Activities
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.
- 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
The TAO
Role: Construction and maintenance
As authorized, directed and financed by the TELx Council, 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 liquidity miners and relevant TELx organizations, review:
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 over time, according to rules according to rules that are set by the TELx Council.
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 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.
TELx Harvesting Levels: Interactions
- Miner | Activities | Y1 TEL Allocation | Basis for Income
- Liquidity Miners | DeFi Liquidity Provision
Provide liquidity to TELx DeFi markets and enable users to exchange their assets in a decentralized, automated, self-custodial manner.
Stake Liquidity on TELx
Stake TELx liquidity provider tokens (LPTs) in TELx staking contracts to harvest TEL. | Total: 200,000,000
Flow: 16,666,666.66 per month | Basis for Income
Pro-rata share of liquidity staked on TELx over time.
TELx: TEL Harvesting Activities
- Market | Protocol | Issuance Allocation | Time Slots | Basis for Allocation | Mechanism
- TEL/USDC 80:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | TELx Staking Contract
- TEL/BAL 80:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | TELx Staking Contract
- TEL/DFX/USDC 40:40:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | DFX Staking Contract
- TEL/WETH 80:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | TELx Staking Contract
- TEL/WMATIC 80:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | TELx Staking Contract
- TEL/WBTC 80:20 | Balancer V2 (Polygon) | 2,777,777.78 | Per calendar month | Pro-rata share of staked liquidity | TELx Staking Contract
Outcome Indicators
Evaluative Criteria
General Performance Indicators
- 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?
- 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.
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.
Participation
How many liquidity miners have staked TELx liquidity, are voting, how many markets are spread across?
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 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?
- 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
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)