TANIP: Proposal - Revised TANIP-1 Proposal: Redirect TEL Issuance Towards Centralised Exchange Listings
Submitted by: Bluelights
Date: 07th July 2025
Overview: The original intent of TANIP-1 — to incentivise fee-generating activity on the Telcoin platform and reward real ecosystem participation — remains sound. This revised proposal does not reject that goal, but instead offers a practical redirection of $TEL issuance that better aligns with current outcomes and the broader mission of adoption.
The original TANIP-1 was designed to activate $TEL issuance at the application layer, rewarding stakers and referees based on protocol fee activity. However, real-world implementation has revealed several critical issues that have undermined its effectiveness and fairness.
Problems Identified:
- Reward Concentration: The top 6 wallets have collected over 69% of all distributed rewards, and the top 25 wallets account for more than 85%, despite representing only 2.7% of total participants. This extreme concentration undermines the principle of fair distribution and discourages broader participation.
- New Wallet Drop-off: Early phases saw strong new user engagement, with nearly 68% of reward-earning wallets being new. However, recent periods show a sharp decline in new wallet participation, suggesting the current system is failing to attract or retain new users.
- Regional Accessibility Issues: Many users are excluded from participating due to the Telcoin app not being available in certain regions, resulting in an inherently unfair distribution structure. Even though many users are eager to participate in the rewards programme, they are currently unable to do so. Rather than waiting for the app to launch in these regions before onboarding users, it would be more effective to allocate resources toward building on/off ramps in underserved areas now. This approach would enhance the user base and enable faster onboarding, ensuring that users are ready to adopt the Telcoin Wallet as soon as it becomes available in their region. If the objective is to grow app adoption, the current rewards system does not support this goal and fails to nurture emerging user bases globally.
- Disproportionate Rewards: A small number of wallets dominate reward distribution, collecting millions of $TEL while most users receive minimal or no rewards.
- System Gaming: The structure allows for behaviour that exploits the system without contributing to meaningful growth or adoption.
- Significant Missed Rewards: Many users are missing out on their expected $TEL due to unclear mechanics or flawed eligibility tracking.
- Lack of Observable Impact: Despite ongoing $TEL issuance, there has been no corresponding increase in TVL, transaction volume, or user growth.
Community Sentiment: The community has voiced strong concerns about the fairness, transparency, and utility of the current reward model. There is growing consensus that a different approach would be more effective in driving adoption and long-term value.
Proposed Solution: Redirect the remaining Phase 1 $TEL issuance—originally intended for protocol-level staking rewards—towards funding Tier 1 and Tier 2 centralised exchange (CEX) listings. This includes pausing the current distribution model and repurposing unissued or future rewards into a growth-focused exchange listing fund.
Objective: Support Telcoin’s growth and liquidity by securing $TEL listings on major centralised exchanges.
Justification:
- Reduced Operational Overhead: Ending the current reward system reduces the internal resources needed to maintain reward calculations, eligibility logic, dispute handling, and frontend display within the app—allowing the Telcoin team to focus development efforts on scaling core features and improving user experience.
- Increased Visibility & Access: Listings on Tier 1 and Tier 2 exchanges significantly increase user access and market exposure.
- Stronger Demand Drivers: Unlike the current reward emissions—where most $TEL is absorbed by a small number of wallets without contributing to growth—centralised exchange listings create sustainable demand by increasing access, liquidity, and long-term user adoption.
- Better Return on TEL Issuance: Every $TEL spent can deliver a tangible network benefit, versus being absorbed by a small pool of insiders.
Execution Plan: 5. Consider capping any further Phase 1 rewards at a maximum of 1 million additional $TEL, or implement a tapering issuance structure over time to mitigate runaway dilution. 6. Re-evaluate anti-gaming mechanisms to ensure fairer, more distributed participation and reduce the dominance of a few addresses.
- Pause TANIP-1 distributions immediately to prevent further inefficiencies.
- Allocate TEL to a CEX Listing Fund, governed transparently and with oversight by the Telcoin Authority Organisation (TAO) Council.
- Engage with Tier 1 and Tier 2 exchanges to explore listing terms, liquidity requirements, and marketing options.
- Submit a formal council proposal for approval by the Telcoin TAO Council, as outlined in the forum’s council governance structure.
Optional Community Involvement:
- Community feedback to inform council decisions.
- Transparent reporting of how TEL is allocated and spent, ensuring accountability.
- Future incentive rounds can be proposed, but should be tied to measurable outcomes post-listing (e.g., new user growth, usage volumes, or holding milestones).
Conclusion:
While the current rewards structure may be retired for now, it does not mean it must be abandoned forever. Once the Telcoin ecosystem is more established—with wider regional access, deeper liquidity, and stronger user activity—the reward system can be reassessed and potentially reintroduced in a more targeted and effective manner.
The original goals of TANIP-1 remain valid: to grow Telcoin adoption and reward ecosystem participants. However, the current implementation fails to deliver on those goals. By redirecting $TEL issuance towards centralised exchange listings, we align community incentives with Telcoin’s growth, bring new users into the ecosystem, and provide real value to token holders.
Call to Action: We urge the Telcoin TAO Council to approve this revised proposal and work towards a more impactful use of $TEL issuance.
*Note: This proposal is an amended version of the original TANIP-1 based on live data analysis and community feedback. Supporting documentation is available in the attached spreadsheet.