Telcoin Association Release, August 2024

TAO Updates August 2024
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Telcoin Association Release, August 2024

Introduction

As we approach some important milestones, Telcoin Autonomous Operations (TAO) has prepared this update to keep the community informed about Telcoin Platform developments and upcoming Association events. This update covers the ongoing TGIP-1 implementation plan, the inaugural Telcoin Association elections, Telcoin Network’s ongoing engineering, testing and team expansion, the official incorporation of the TAO in the UK, and broader Telcoin ecosystem news. Read on and consider nominating yourself for a council position in our upcoming vote if you want to have a direct say in Telcoin Platform governance!

Telcoin Association Update: August 2024

TGIP-1: Updates

Inaugural Telcoin Association Election

Running for Office

Inaugural Association Election: Overview

Nomination Instructions

Telcoin Association: Governance Overview

Telcoin Platform: Introduction

Miners: Introduction

Miner Groups

Miner Councils

Telcoin Network

Ecosystem Development

Legal & Organizational

Telcoin Association Discord

TGIP-1: Updates

Refined Implementation Plan

Initially, the implementation plan for TGIP-1 involved first the commencement of TEL issuance throughout the Telcoin Platform and then the inaugural election of the Miner Councils. The rationale behind this ordering was to increase the likelihood of self-organizing the Miner Councils in elections, without substitution by the TAO.

However, following that approach yielded an interim situation where Telcoin Holdings Pte. Ltd. (“Telcoin”) is the only Application Developer on the Telcoin Application Network (“TAN”) earning TEL issuance along with Stakers. As organizing directors of the Association, we felt that may be perceived as a conflict and not sufficiently decentralized in keeping with the spirit of the values of the Telcoin Association Constitution.

Therefore, we have decided to move forward with the election of the councils, after which the Councils will be able to govern operational rules and the TAN Council may approve application layer TEL issuance for Stakers and Developers.

That means… It’s election season!

Inaugural Telcoin Association Election

We are excited to announce the inaugural Telcoin Association Elections on September 4th at 4:00 pm CST!

This event marks the formal transfer of control over the Telcoin Platform and TEL Treasury to the community, providing a legally recognized institution for users to actively participate in governance. We encourage all community members to nominate themselves for a Council Member role!

Running for Office

We are excited to embark on this journey together and look forward to your active participation in shaping the future of Telcoin. Your involvement is crucial to our collective success and innovation in the blockchain finance space. Nominate yourself for a position on any of the Miner Councils to actively participate in the governance and direction of the Telcoin Platform. Ensure your voice and interests are represented, apply on the Association Forum now!

Inaugural Association Election: Overview

On Wednesday, September 4th at 4:00 PM CST, TAO will submit five Council Election Proposals for each Miner Group. Miners vote for candidates based on their pro-rata share of TEL voting power within their Miner Group at the time of the proposal.

Should a Miner Group fail to elect a Council Member(s), the TAO substitute votes on their behalf until a new candidate is elected.

The election lasts seven days, concluding on September 11th at 4:00 PM CST.

Election Details

When

  • Proposal Date: Wednesday, September 4th at 4:00 PM CST, 2 PM PST
  • Council Nomination Deadline: Tuesday, September 3rd at 4:00 PM CST.
  • Duration: 7 days

Voting Rules

  • Proposal Author: The TAO will propose 5 Miner Council Election proposals at the same time to each Miner Group snapshot.
  • Approval Rate: Plurality; the candidate(s) with the most votes wins.
  • Quorum Threshold: 20% of TEL staked by each Miner Group must vote for the candidates to be elected, or else the TAO will substitute vote on their behalf until a candidate is elected through liquid delegations.

Compliance Approval

  • Council Verification: Upon election, Council Members must complete mandatory identity verifications with the Compliance Council and TAO within 30 days, or else the TAO will substitute vote on their behalf until it is completed.

Learn more about Council Elections.

Election Process

The elections will follow a simple sequential process:

  1. December 28th, 2023 - September 3rd, 2024: Nominee application submission. Each community member wishing to run for a position representing their chosen miner group within a chosen council submits an application on the Telcoin forum. This step is described in detail in the Nomination Instructions section.
  2. September 4th - September 11th at 4:00 PM CST: Voting. Community members will vote for candidates using Snapshot. Voters can change their votes during this time, but all votes are final when the voting period ends.
  3. September 11th at 4:00 PM CST: Results. Voting will close and results will be immediately available.
  4. September 11th - October 10th: Council ID Verification. Nominated applicants will be required to complete KYC. This is outlined in Authorization of Members Elected to Miner Councils.

The current priority for Telcoin community members is the nomination application submission. The following guide is designed to aid people in submitting their applications. We invite all Telcoin community members to submit an application.

Nomination Instructions

  1. Familiarize yourself with the Miner Groups, considering which group you most fit into, and Miner Councils, including their roles and responsibilities.

  2. Decide, based on your attributes, skills, experience and interests, which miner group you would most like to represent and which council you would like to join.

  3. Note: The number of members in the table below shows the open positions for the specific Miner Group on the corresponding Miner Council.

  4. Find your specific forum from the links in the table below, clicking the link at the intersection between your preferred miner group and preferred council.

  5. For example, liquidity miners interested in running for the TELx Council should select “3 Members” in the table below.

Miner Group TAN Council TELx Council Platform Council Treasury Council Compliance Council
Stakers 2 Members 1 Member 2 Members 1 Member 1 Member
Liquidity Miners 1 Member 3 Members 2 Members 1 Member 1 Member
Developers 2 Members 1 Member 2 Members 1 Member 1 Member
Validators 1 Member 1 Member 2 Members 1 Member 1 Member
  1. Once in the correct forum, read the top post in the forum, which will be a post similar to the one below.

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  1. To submit an application, click the ‘Reply’ button in the bottom right of the post (highlighted in red in the screenshot). This will open a text box to input answers to the above questions. Candidate information must be fully filled out, while the questions in the council nomination application are just intended to serve as a guide.
  2. Once happy with your application, click ‘Reply’ (highlighted in red in the screenshot):

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  1. Congratulations on your application!
  2. Double check your post has appeared at the bottom of the forum and check back periodically to see if there have been any updates on your application.
  3. As always, if you have any issues with any of the steps outlined here, please contact us via Discord!

Telcoin Association: Governance Overview

Introduction to the Telcoin Platform and Governance System

The Telcoin Platform, including its native token TEL, is governed by the Telcoin Association. This system is designed to establish a global blockchain network and token standard for the GMSA, mobile network operators, and their subscribers. By coordinating a global blockchain network around the telecom industry, the Telcoin Association aims to create an alternative financial system, bringing blockchain finance to every mobile user worldwide.

Key aspects of governance include:

  • Democratic Management: Community-driven improvements, maintenance, and TEL allocation.
  • Shared Ownership: Involves the entire value chain in the ownership model to ensure broad participation, benefits, viral network effects at the outset, and defensibility at scale.
  • Blockchain Standard for Telecoms: Harnesses the global reach of mobile networks to rapidly scale blockchain finance to every mobile phone user in the world.

Telcoin Platform: Introduction

The Telcoin Platform is the combined structure of three overlapping blockchain networks with distinct services and miners:

  • Telcoin Network (Blockchain Layer): An EVM-compatible, public blockchain secured by GSMA MNOs using proof-of-stake consensus.
  • TELx (Exchange Layer): A network of liquidity pools on DeFi protocols enabling user-owned, automated, self-custodial exchange.
  • Telcoin Application Network (TAN) (Mobile Application Layer): A network of mobile applications integrated with the Telcoin Platform, providing users access to its services.

This vertically-integrated platform incentivizes adoption across the entire value chain and creates a robust ecosystem for blockchain finance and network services.

Miners: Introduction

Miners are crucial actors on the Telcoin Platform. They produce network services, earn TEL fees from consumers, “mine” TEL issuance from the platform, and hold collective power in governance. The four types of miners - Validators, Liquidity Miners, Developers, and Stakers - each play distinct roles.

Miners: Summary
  • Liquidity Miners
    • Role: Liquidity provision on TELx
    • Description: Users who provide liquidity to TELx DeFi markets, stake their liquidity in TELx staking contracts, earn fees from trades, and harvest TEL issuance based on their share of staked liquidity.
    • Voting Power: Propose and vote based on their pro-rata share of staked liquidity on TELx.
  • Stakers
    • Role: Platform adoption on TAN
    • Description: Telcoin mobile application users who stake TEL and connect with their network through the Platform to establish it as financial infrastructure. They earn a percentage of their referred users’ fees in TEL and harvest TEL issuance based on their network’s adoption of the Platform.
    • Voting Power: Propose and vote based on their pro-rata share of TEL staked on TAN by Telcoin Application users.
  • Developers
    • Role: Mobile Application Development on TAN
    • Description: GSMA members who stake TEL, develop mobile applications connecting users to the Telcoin Platform, earn transaction fees from their customers, and harvest TEL issuance based on user adoption of their apps.
    • Voting Power: Propose and vote based on their pro-rata share of TEL staked on TAN relative to other TAN Developers.
  • Validators
    • Role: Blockchain security on Telcoin Network
    • Description: GSMA mobile network operators (MNOs) who stake TEL for proof-of-stake consensus (PoS), manage validator nodes, produce, and verify transaction blocks. They earn TEL when they secure blocks to the blockchain.
    • Voting Power: Initially represented by the TAO until a quorum of 10 Validators, propose and vote with others in their Miner Group based on their pro-rata share of TEL staked for PoS consensus on Telcoin Network.

Miner Groups

Each Miner Group is empowered with equal power and control in Telcoin Platform governance, ensuring that their distinct, collective interests and rights are protected and advanced. Miner Groups are responsible for electing Council Members to represent and protect their interests on 5 Miner Councils.

A miner’s voting power within their Group is based on their pro-rata share of TEL staked at the time of the proposal and the candidate(s) with the most votes are elected (i.e. plurality). The opportunity for voting is open during a 7-day period. During that time, miners can cast votes and update votes until the deadline.

Miner Groups: Voting Power, Channels, & Council Representation

Miner Councils

Introduction

Miner Councils are key policy-making bodies within the Telcoin Platform, responsible for setting the rules and overseeing the collective-choice processes that govern various domains. Each miner group elects representatives to these councils to ensure a balanced and democratic governance system.

Key Features of Miner Councils
  • Self-Organized: Made up of Miner representatives, or “Council Members,” elected by Miner Groups through election and delegation ceremonies.
  • Multiple Centers of Authority: Includes global, local, and special-purpose councils, each with authority over specific domains within the Telcoin Platform.
  • Democratic Policy-Making: Engage in democratic decision-making processes to set operational rules for interacting with the platform and each other.

Councils Roles and Responsibilities

Global Councils

The Platform and Treasury Councils are considered ‘global councils’ as they have authority over and duties towards platform-wide systems and policies.

Platform Council (8 members)
  • Role: Oversees platform-wide systems and policies.
  • Responsibilities: Manages platform-wide systems, social policies, TEL Treasury, token contract, governance infrastructure, and Telcoin Network in cooperation with the Treasury Council.
  • Representation
    • Liquidity Miners: 2 Members (apply)
    • Stakers: 2 Members (apply)
    • Developers: 2 Members (apply)
    • Validators: 2 Members (apply)
  • Learn more about the Platform Council
Treasury Council (4 members)
  • Role: Shares authority over the TEL Treasury and token, governance infrastructure, and Telcoin Network
  • Responsibilities: Votes on proposals related to the TEL Treasury, governance infrastructure, and Telcoin Network.
  • Representation
    • Liquidity Miners: 1 Member (apply)
    • Stakers: 1 Member (apply)
    • Developers: 1 Member (apply)
    • Validators: 1 Member (apply)
  • Learn more about the Treasury Council
Local Councils

The TAN and TELx Councils are considered ‘local councils’ as they have authority over and duties towards sub-systems and local policies.

TAN Council (6 members)
  • Role: Governs the Telcoin Application Network (TAN).
  • Responsibilities: Manages TAN operational rules, plans and finances infrastructure, allocates TEL issuance, and disseminates system information.
  • Representation:
    • Stakers: 2 Members (apply)
    • Developers: 2 Members (apply)
    • Liquidity Miners: 1 Member (apply)
    • Validators: 1 Member (apply)
  • Learn more about the TAN Council
TELx Council (6 members)
  • Role: Governs the TELx network.
  • Responsibilities: Oversees TELx operational rules, plans and finances infrastructure, allocates TEL issuance, and shares system information.
  • Representation:
    • Liquidity Miners: 3 Members (apply)
    • Stakers: 1 Member (apply)
    • Developers: 1 Member (apply)
    • Validators: 1 Member (apply)
  • Learn more about the TELx Council
Special-Purpose Council

The Compliance Council is a special-purpose, cross-jurisdictional Council with a specific set of duties and policy-making authority across different levels of governance.

Compliance Council (4 members)
  • Role: Manages compliance, legal matters, conflict resolution, and authorizations.
  • Responsibilities: Ensures compliance, resolves conflicts, and manages legal and organizational matters across jurisdictions.
  • Representation:
    • Liquidity Miners: 1 Member (apply)
    • Stakers: 1 Member (apply)
    • Developers: 1 Member (apply)
    • Validators: 1 Member (apply)
  • Learn more about the Compliance Council

Telcoin Network

New Protocol Engineer: Steve

Steve joined the core protocol team in June and is making a huge impact! Steve brings a wealth of experience in building and architecting innovative products and services. He has prior experience building a layer 1 protocol. He also has extensive experience with technical strategy and developing secure and scalable infrastructure for financial institutions to leverage digital assets.

Steve’s primary focus is enhancing Telcoin Network’s performance and security, as well as implementing state-of-the-art blockchain features.

New Solidity Engineer: Markus

Markus joined the core protocol team this month and has already hit the ground running. Markus has impressive experience as the lead protocol engineer for Wave Protocol and chose to join our team despite several other projects interested in his expertise. We’re thrilled he joined us because his knowledge and insight are invaluable to implementing critical infrastructure for Telcoin Network’s protocol.

Markus’s primary focus is designing, building, and deploying the on-chain programs that are integral to Telcoin Network’s security and scalability.

Features

In collaboration with DexGuru, we are nearing the completion of several critical tools that will enhance user experience and developer engagement with Telcoin Network.

Adiri Block Explorer: An intuitive interface for tracking transactions and blocks on the Adiri Test Network, essential for transparency and usability. This modern explorer is reminiscent of the classic Etherscan, and includes a lot of familiar features. Visit the explorer at https://telscan.io

DeFi Swap Interface: Facilitating a user-friendly interface to securely exchange assets on Telcoin Network. Currently a fork of Uniswap V2, this interface is only the beginning for big DeFi features coming to Telcoin Network. https://swap.telcoin.network

Data Warehouse Integration: Enabling sophisticated data analysis to improve decision-making processes and provide insights to our users. Developers will have access to an API to query live data to build powerful dApps with fast finality and low fees on Telcoin Network.

Technical Documentation: Telcoin Network has launched a documentation website for users, developers, and validators to find information they need to interact with the protocol. You can review the documentation at https://docs.telcoin.network

Roadmap and Mainnet Preparation

We have finalized our internal roadmap leading up to launching mainnet. The roadmap lays out strategic steps and key features that are required to ensure that Telcoin Network meets the expectations of MNOs, our community, and the broader blockchain ecosystem. Below are some of the milestones on Telcoin Network’s current roadmap before the protocol undergoes a security audit. They are listed in no particular order.

Bridging Solution

Bridging is a critical feature for Telcoin Network, and we’re excited to announce that we will begin testing our bridging solution in this next phase. The security and reliability of the bridge is paramount for Telcoin Network’s own operability and will provide a robust solution for using TEL as the native token.

The current plan is to work with Axelar relayers instead of developing our own network of attestation servers. Axelar will attest to TEL bridge requests on Ethereum, and leverage the power of PoS consensus for validating events.

Native Token Implementation

Bridged TEL will arrive on Telcoin Network as a wrapped version of TEL, then unwrapped on Telcoin Network as the native token. Using TEL as the native token allows the protocol to manage state directly, without using the EVM. The main benefit for the network is speed. This approach also ensures the total supply of TEL doesn’t change and is publicly verifiable.

Execution Nodes

Validators run their own RPCs for collecting and batching transactions. The benefit to this approach is preventing anonymous block proposers, which will help protect users from MEV attacks. Validators could potentially still implement their own MEV attacks, but this would be easily identifiable by the community. At that point, users could easily avoid the malicious RPC and even vote to take action through governance.

While collecting and proposing blocks are limited to validators (at least for now), it’s critical that anyone has the ability to execute the output from consensus and independently verify canonical blocks. We plan to release light clients for Telcoin Network to the public so anyone can subscribe to Telcoin Network’s consensus and execute the output themselves.

Pending Blocks

Telcoin Network’s consensus reaches finality every other round. The benefit is users know the block is final, settlement is reached quickly, and there’s no possibility of forks. Because there is no concept of “pending blocks” like Ethereum or Polygon, some RPC modifications are necessary to provide developers with accurate information that won’t break popular EVM tools.

Staking and Validator Shuffling

Adiri Testnet uses a static validator set that does not shuffle. This means new validators cannot join the network yet. This is a top priority for the protocol team and involves the Telcoin Network validator staking contract. We are carefully considering design decisions to ensure the most secure and scalable solution is in place.

Basefees and Rewards

The protocol manages validator rewards, which are distributed from a governance-funded safe. Base fees are burned and an equivalent amount is regenerated to the TEL Treasury, as specified on Telcoin.org. The TEL Treasury contract is updated using a call from the “System Address” using a similar approach as Ethereum and Polygon.

Network Testing and Documentation

Our team is rigorously testing the network internally in preparation for the public release of Adiri Testnet. This phase is crucial as we aim to ensure that every component performs optimally under varied conditions. We’re also enhancing our documentation to provide clear, comprehensive guides and resources to make it easier for users and developers to engage with the network. Sometimes referred to as “tech debt” or “chores”, our team recognizes their importance and embraces these necessary tasks to ensure we are delivering the best product possible. It may not always be fun, but it’s a great feeling after implementing a new feature to see every test passing before deploying the latest version. Testing and documentation will always be on our roadmap because they never end. Find documentation for Telcoin Network at https://docs.telcoin.network

Benchmarking

Benchmarking is an important metric for any network. Although there isn’t an industry standard, we plan to benchmark relevant information in as many ways as possible with the goal of providing as much insight to the network’s performance as possible. Benchmarking will include variable conditions as well, such as geographically distant nodes and stress testing.

Security Hardening

The team has identified some potential areas to increase security. One example is implementing EIP-2335 for secure BLS12-381 key management, as well as reducing the number of external software packages the protocol relies on. During the active development phase, these tools are instrumental in building features more quickly. However, as the protocol becomes more stable, security considerations are prioritized.

Ecosystem Development

  • GSMA: Telcoin has partnered with GSMA across strategic events (including MWC Barcelona and MWC Kigali) where we were honored to be a key sponsor, speaker, panel participant, and industry thought leader. Furthermore, Telcoin has also joined GSMA and various MNOs in strategic feasibility discussions to bring B2B telco settlements on chain.
  • Central Banks: Telcoin is collaborating with a leading African central bank on a sandbox project to demonstrate the efficacy of inbound stablecoin remittances to the continent. As a proud advisory partner, Telcoin supported the central bank to draft and formulate their digital asset risk and compliance policies. Telcoin also sponsored and participated in MAS/Elevandi events globally and continues to engage with various central banks in Asia and Africa to work on POCs related to responsible and fully compliant digital asset use cases.
  • Exchange Listings: In addition to the existing KuCoin listing, Telcoin has also signed listing agreements with CoinDCX, LBank, and Bitget. CoinDCX, the largest regulated exchange in India, signed a unique partnership that will support listing Telcoin Digital Cash tokens in the future. At the time of writing, Bitget is the 12th largest exchange globally, with LBank coming in at number 17 (according to CoinMarketCap).
  • Market Maker Partnership: Make-It, a boutique market making firm based in Frankfurt, Germany signed a strategic partnership with the Telcoin Association to provide liquidity across leading exchanges - leveraging advanced market making techniques and their proprietary trading engine. In addition to supporting new listings, Make-It will also focus on mirroring liquidity on exchanges that listed TEL organically, including Bybit, BingX, Bitrue, and Indodax.
  • App Developers: Telcoin is in advanced stage conversations with various MNOs to power digital remittance and blockchain-powered wallets.

Legal & Organizational

The Telcoin Association has been created as a Swiss verein in Lugano, Switzerland. Verein is the German term for an association of individuals that join to engage in a specific activity, such as communal governance of natural resource systems (e.g. forestry). The verein in Switzerland, when registered, gives the associated individuals the ability to conduct business as a legal entity while also providing the same limited liability protections of a corporate entity. The main governing document of the verein is its constitution, by which the members of the verein must operate.

The Telcoin Association’s Constitution was drafted to formally create the legal entity for the association of TEL holders (“Members”). The constitution provides for interim directors, Paul Neuner and Parker Spann, to handle its affairs until the election of Members to the Association’s Miner Councils. Noam Dessibourg, a Swiss national residing in Zurich, Switzerland serves as the Association’s resident interim director. Upon the election of the Miner Councils the interim directors automatically resign and the Miner Councils thereafter govern the Association in accordance with the terms of the constitution.

The Association’s constitution was filed with the Corporate Registrar in the Canton of Ticino, Switzerland (wherein Lugano is located) and on May 27, 2024, the Ticino Corporate Registrar issued the Telcoin Association’s corporate number, CHE­169.445.588. It is through this number, that the Association may be identified as a legal entity for things such as forming subsidiaries, obtaining licenses, being audited, or filing taxes. Telcoin Association’s office address is at Via Canova 15, 6900 Lugano, Switzerland.

The Telcoin Association was established to provide a legal entity and forum for the community to self-govern the Telcoin Platform, the TEL token, and governance interactions between Miners within the Association. The Telcoin Association will conduct actual business operations through its Telcoin Autonomous Operations Ltd. (“TAO”) subsidiary in the UK. In other words, the Telcoin Association is the entity that makes the decisions, and it is the TAO that carries them out.

As of August 16th, 2024, the TAO has been officially created and incorporated in the UK doing business as ‘Telcoin Autonomous Ops, Ltd.’

TGIP-1 Implementation: Overview

The primary mandates of the TAO at this stage are to implement the Telcoin Association and Platform, which includes:

  • Association Governance: Facilitate the inaugural Miner Council elections and the self-organization of the Association.
  • Telcoin Platform & TEL: Develop and release the main Telcoin Network blockchain, implement the Telcoin Application Network (TAN), maintain TELx, and empower the community with the infrastructure necessary to govern the rules structuring interactions with the Platform and Association.
  • Ecosystem: Share knowledge with MNOs, other GSMA members, and the broader community about the opportunities and mechanisms for participating on the Telcoin Platform and within its Association. Align with strategic partners to ensure the Association is equipped to safely and comprehensively operate.
  • Legal & Org: Create and administer legal filings, coordinate and finance the development of the Platform and Association.

TGIP-1 Implementation: Updated TEL Issuance Allocation (2024)

As the Association and Platform are still heavily in development, we have updated the budget for 2024 to allocate more resources accordingly, between Miners and the TAO as detailed below. We have also adjusted the overall budget down slightly to match the original intention of budgeting 10% annually of the remaining TA TEL treasury.

TEL Allocation Original (2024) Description Updated TEL Issuance (2024)
Total Miners TAO
TN (Validators) 200M TN (Preserve for Telcoin Network MNO Setups) 100M 100M
Preserve in TAO Treasury 100M 100M
TELx (LPs) 200M TELx 200M 200M
TAN (Developers) 166.67M TAN (Preserve for Dev Stakers June-Dec 2024) 97.22M 97.22M
Preserve in TAO Treasury 69.44M 69.44M
TAN (Merchants) 166.67M Preserve in TAO Treasury 166.67M 166.67M
TAN (Retail) 166.67M TAN (Preserve for Retail Stakers June-Dec 2024) 97.22M 97.22M
Preserve in TAO Treasury 39.44M 39.44M
TAO (Operations) 100M To TAO Treasury 100M 100M
Governance 30M TA to Governance 30M 30M
Total 1.03B 1B 524.44M 475.56M

Telcoin Association Expenses Summary: H1 2024

Executive Overview

The Telcoin Association continues to achieve significant milestones in developing critical Platform infrastructure and establishing robust institutional and legal frameworks for global operations. Through the TAO, substantial resources have been allocated to steadfastly support the implementation of TGIP-1, fortify the Association, and advance the Telcoin Network—poised to become the global blockchain standard for telecommunications. These strategic efforts are fundamental to ensuring the Platform and Association’s robust growth and seamless operation. As the Election process nears completion and the Telcoin Network mainnet launch approaches, the Miner Councils will soon assume comprehensive oversight of the Telcoin Platform, including governance over the TEL Treasury and blockchain upgrades.

Financial Transparency

In alignment with our commitment to transparency, we present below the expenses incurred by Telcoin on behalf of the Telcoin Association for H1 2024. These figures reflect our strategic allocation of resources, balancing the development of complex, mission-critical systems, with prudent budgeting for ongoing and future initiatives.

Category Description Amount Total
Payroll (R&D) Platform Research & Development
R&D: Governance $ 7,962.68
R&D: Telcoin Network $ 146,450.99
R&D: Association Website $ 4,485.85
TELx $ 3,037.74
TEL Token $ 10,030.93
TAN $ 12,238.25
Subtotal Payroll (R&D) $ 184,206.44
Payroll (Support) Platform Support (Non-R&D)
Ongoing Support & Maintenance $ 7,485.52
General & Administrative $ 33,771.84
Business Development $ 47,063.53
Subtotal Payroll (Support) $ 88,320.89
Other Operational Expenses $ 160,005.89
Total $ 432,533.22

All R&D costs are capitalized as intangible assets of Telcoin Association. The above will be paid out in TEL by the TAO from the TAO Treasury. Additionally, during the H1 2024 period, a loan in the amount of 86,066,609 TEL was made to market makers supporting TEL token market liquidity on exchanges. All market maker loans receivable are assets of Telcoin Association.

The election of Miner Councils marks a transition to community-driven financial management, as future TEL allocation, budgets, and operations will be overseen by the appropriate Councils. The Compliance Council will spearhead accounting and transparency efforts, including clear policies and procedures, financial reporting standards, and independent audits.

TEL Safes & Transfers

The entirety of the 2024 budget (1B TEL) has been transferred to the following safes accordingly:

Safe Name & Link to Address Safe & TEL Purpose Balance (Start) Transfers (To Date) Transfer & Tx Hash (Now) Total Issuance (Y1) Balance (Now)
TEL Treasury (Ethereum) Primary extractable supply of TEL 10B -173.33M -826.67M* -1B 9B
TELx Council (Polygon) Liquidity Miner emissions & TELx budget 0 133.33M 66.67M* 200M 66.67M
TAN Council (Polygon) Staker and Developer emissions & TAN budget 0 0 194.44M 194.44M 194.44M
TAO Distribution Safe (Polygon) Validator emissions 0 0 100M 100M 100M
Council Member emissions 0 0 30M 30M 30M
TAO Safe (Polygon) Validator emissions, Telcoin Network development, legal & org costs 0 0 435.56M 475.56M 435.56M
TAO Implementation Safe (Ethereum) Telcoin Network Block Explorer 0 30M 0 30M
Financing the TGIP-1 code audit 0 10M 0 10M
Total 10B 173.33M 826.67M 1B 826.67M

*Note: Please see these two TEL transfers to the TELx Council Safe to account for the 2 million.

  • TEL Transfer to TELx Council Safe: 1M TEL
  • TEL Transfer to TELx Council Safe: 1M TEL

Authorization of Members Elected to Miner Councils

Upon the Association’s election of members to each of its Councils as specified in the Association’s Constitution, the elected Members shall receive a voting non-fungible token (NFT), but the elected members will only be considered provisional Council members until they are authorized by the Compliance Council.

The Association’s Compliance Council (or its delegate or interim director) shall request relevant identity and background information from the Council Member and gather other information as reasonably necessary to conduct a proper review of the provisional Council member. The information requested may vary from member to member at the reasonable discretion of the Association’s Compliance Council, its delegate or interim director, but will usually include a government issued identity document (passport, drivers license), proof of residency, and a criminal background check. A background information disclosure form may also be required. Members may be required to submit this information through different communication channels such as Google Forms, email, Slack, or Tally.so.

The Compliance Council or its delegate (or interim director) shall then analyze the information gathered and determine if the provisional Council Member should be authorized in their reasonable discretion.

The Compliance Council or its delegate (or the interim Telcoin Association directors in the event that the Compliance Council is not constituted) shall complete the authorization determination within 30 days, but may extend the deadline in exceptional circumstances.

Upon passing authorization, the provisional Council Member shall be deemed a qualified Council Member and have all authority for the position as specified in the Association Constitution. In the event that the Compliance Council or its delegate (or interim director) determines that the Council Member cannot be authorized, in its reasonable discretion, then the TAO will revoke the provisional Council Member’s voting NFT and vote until a new Member is elected by the Miner Group. If the provisional Council Member does pass authorization, then the Compliance Council (or delegate or interim director) shall notify the provisional Council Member that they have passed and are qualified to fully participate in Council activities.

Creation of the Telcoin Association’s Operational Subsidiary, Telcoin Autonomous Ops Ltd. (“TAO”)

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We are pleased to announce that Telcoin Autonomous Ops Ltd. (TAO) has been formally established and incorporated in the UK as of August 16th, 2024, exactly one year after the creation of the Telcoin Association. This significant milestone solidifies the operational framework of our association and sets the stage for the continued expansion and development of our ecosystem.

With the Telcoin Association as the sole shareholder, the incorporation process involved thorough due diligence to ensure compliance with all necessary legal and regulatory standards. This meticulous process has been successfully completed, marking the official launch of the TAO.

The TAO has been created with an interim director structure that mirrors the current framework of the Telcoin Association. This structure will be adapted following the upcoming Miner Council elections to better align with the governance needs of the Association and its stakeholders.

The formal establishment of the TAO paves the way for entering into a services agreement with the Telcoin Association. This agreement will enable the TAO to provide formal services to the Association, ensuring streamlined operations and effective governance. Additionally, a similar agreement will be executed between the TAO and Telcoin Holdings Pte. Ltd., allowing for the contracting and reimbursement of services and expenses accrued to date. This agreement will also serve as the mechanism for the provision of services in the future, reinforcing the operational integrity and financial stability of the Telcoin Association.

Telcoin Association Discord

We are thrilled to announce that the Telcoin Association Discord channel is live! Head to the server now to discuss all things Telcoin Platform, TEL, Association, Governance, and more.

Are you interested in nominating yourself, learning more about Elections and the various Council roles, or proposing your candidacy to the community over voice?

Then join the first “Telcoin Association Town Hall” for the Inaugural Election on August 28th at 4 PM CST.

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@parkerspann - wow …so much detail … huge respect for putting this together . I need more coffee now but I’m not sure I could get much more pumped. truly excited about the future . Thanks man !

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