Telcoin Association Update: 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 to announce upcoming Association events, including the inaugural Miner Council Election on September 4th! This update covers the ongoing TGIP-1 implementation plan, the inaugural Telcoin Association elections, Telcoin Network’s ongoing development, testing and team expansion, legal & organizational progress, 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 (Lite Version), August 2024
2. Inaugural Telcoin Association Election
3. Election Process and Nomination Instructions
5. Telcoin Association Governance Overview
6. Telcoin Platform: Introduction
11. Legal and Organizational Updates
12. Budget and Financial Overview
1. TGIP-1: Updates
Refined Implementation Plan:
Initially, the implementation plan for TGIP-1 involved the commencement of TEL issuance followed by the inaugural election of the Miner Councils. However, to avoid perceived conflicts of interest, we decided to proceed with council elections first. This ensures the Association is sufficiently organized by the community with decentralized authority to approve the rules in alignment with the Telcoin Association Constitution.
2. Inaugural Telcoin Association Election
Election Date: September 4th, 2024 at 4:00 PM CST
Significance: This milestone marks the formal transfer of control over the Telcoin Platform and TEL Treasury to the community, enabling active participation in self-governance.
Nomination: Community members are encouraged to nominate themselves for council positions to shape Telcoin’s future.
3. Election Process and Nomination Instructions
Nomination Period: Ends September 3rd, 2024 at 4:00 PM CST
Voting: September 4th, 2024 at 4:00 PM CST - September 11th, 2024
Results and Verification: September 11th - October 10th, 2024
- Nominee Application Submission: Submit applications on the Telcoin forum.
- Voting: Vote for candidates using Snapshot.
- Results: Voting closes and results are announced on September 11th, 2024 at 4:00 PM CST.
- Council ID Verification: Elected members complete KYC verification.
Miner Groups and Councils
| Miner Group | TAN Council | TELx Council | Platform Council | Treasury Council | Compliance Council |
|---|---|---|---|---|---|
| Liquidity Miners | 1 Member | 3 Members | 2 Members | 1 Member | 1 Member |
| Stakers | 2 Members | 1 Member | 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 |
Voting Channels:
4. Call to Action
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 future of the Telcoin Platform. Ensure your voice and interests are represented, apply on the Association Forum now!
- Stakers: Apply now!
- Platform Council: 2 Members
- Treasury Council: 1 Member
- TAN Council: 2 Members
- TELx Council: 1 Member
- Compliance Council: 1 Member
- Liquidity Miners: Apply now!
- Platform Council: 2 Members
- Treasury Council: 1 Member
- TAN Council: 1 Member
- TELx Council: 3 Members
- Compliance Council: 1 Members
- Developers: Apply now!
- Platform Council: 2 Members
- Treasury Council: 1 Members
- TAN Council: 2 Members
- TELx Council: 1 Member
- Compliance Council: 1 Member
- Validators: Apply now!
- Platform Council: 2 Members
- Treasury Council: 1 Member
- TAN Council: 1 Member
- TELx Council: 1 Member
- Compliance Council: 1 Member
5. Telcoin Association Governance Overview
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 GSMA 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.
- Blockchain Standard for Telecoms: Harnesses the global reach of mobile networks to rapidly scale blockchain finance to every mobile phone user in the world.
- Shared Ownership: Involves the entire value chain in the ownership model to ensure broad participation, benefits, viral network effects, and defensibility at scale.
6. Telcoin Platform: Introduction
The Telcoin Platform is a vertically-integrated structure consisting 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): Mobile applications integrated with the Telcoin Platform providing users access to its services.
This integrated platform incentivizes adoption and creates a robust ecosystem for blockchain finance and network services.
7. Miners Overview
Liquidity Miners:
- Role: Liquidity provision on TELx.
- Description: Users 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 stake TEL, engage and connect with their network through the Platform to establish it as payments 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 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 with others in their Miner Group based on their pro-rata share of TEL staked on TAN relative to other Developers.
Validators:
- Role: Blockchain security on Telcoin Network.
- Description: GSMA mobile network operators (MNOs) 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.
Telcoin Association rules grant each Miner Group 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 five 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, the candidate(s) with the most votes are elected (i.e. plurality), and the ceremony lasts seven days.
8. 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
Platform Council (8 members): 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
- Learn more about the Platform Council
Treasury Council (4 members): 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
- Learn more about the Treasury Council
Local Councils
TAN Council (6 members): Governs the Telcoin Application Network (TAN).
- Responsibilities: Manages TAN operational rules, plans and finances infrastructure, allocates TEL issuance, and disseminates system information.
- Representation:
- Learn more about the TAN Council
TELx Council (6 members): Governs the TELx network.
- Responsibilities: Oversees TELx operational rules, plans and finances infrastructure, allocates TEL issuance, and shares system information.
- Representation:
- Learn more about the TELx Council
Special-Purpose Councils
Compliance Council (4 members): Manages compliance, legal matters, conflict resolution, and authorizations.
- Responsibilities: Ensures compliance, resolves conflicts, and manages legal and organizational matters across jurisdictions.
- Representation:
- Learn more about the Compliance Council
9. Telcoin Network Update
-
Protocol Engineer: Expanding on core functionalities to ensure secure and scalable performance in preparation for mainnet.
-
Smart Contract Engineer: Focused on developing secure and efficient smart contracts to play an integral part in bridging, governance, and TEL as the native token.
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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
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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
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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.
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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
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Roadmap: We have finalized our internal roadmap leading up to launching mainnet. You can find the full roadmap here.
10. Ecosystem Development
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GSMA: Telcoin has partnered with GSMA across strategic events, participating as a thought leader for our industry. We are also engaged in discussions to bring B2B telco settlements on-chain with various MNOs.
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Central Banks: Collaborating with a leading African central bank on a sandbox engagement to demonstrate the efficacy of inbound stablecoin remittances. Telcoin also participates in advisory roles to help central banks draft digital asset risk and compliance policies.
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Exchange Listings: Telcoin has signed listing agreements with CoinDCX, LBank, and Bitget, expanding our reach in regulated markets.
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Market Maker Partnership: A strategic partnership with Frankfurt-based Make-It to provide liquidity across leading exchanges, leveraging advanced market-making techniques.
11. Legal and Organizational Updates
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Swiss Verein: Telcoin Association established as a Swiss verein in Lugano, providing a legal entity and forum for community self-governance. The Association is now officially registered with the Corporate Registrar in the Canton of Ticino, Switzerland, with a corporate number that allows it to operate as a legal entity, form subsidiaries, obtain licenses, undergo audits, and file taxes… all from its new Swiss office!
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TAO Establishment: The TAO is now official! ‘Telcoin Autonomous Ops, Ltd.’ incorporated in the UK on August 16th, exactly one year after the Telcoin Association’s creation. This marks a new era of streamlined operations and effective governance for the Telcoin Association.
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Telcoin Association Discord: The Telcoin Association Discord channel is live! Head to the channel now to discuss all things Telcoin Platform, TEL, Association, Governance, and more.
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Telcoin Association Election Meeting: 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 Town Hall on August 28th at 4:00 pm CST!
12. Budget and Financial Overview
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) | 200,000,000 | TN (Preserve for Telcoin Network MNO Setups) | 100,000,000 | 100,000,000 | |
| Preserve in TAO Treasury | 100,000,000 | 100,000,000 | |||
| TELx (LPs) | 200,000,000 | TELx | 200,000,000 | 200,000,000 | |
| TAN (Developers) | 166,666,667 | TAN (Preserve for Dev Stakers June-Dec 2024) | 97,222,222 | 97,222,222 | |
| Preserve in TAO Treasury | 69,444,445 | 69,444,445 | |||
| TAN (Merchants) | 166,666,667 | Preserve in TAO Treasury | 166,666,667 | 166,666,667 | |
| TAN (Retail) | 166,666,666 | TAN (Preserve for Retail Stakers June-Dec 2024) | 97,222,222 | 97,222,222 | |
| Preserve in TAO Treasury | 39,444,444 | 39,444,444 | |||
| TAO (Operations) | 100,000,000 | To TAO Treasury | 100,000,000 | 100,000,000 | |
| Governance | 30,000,000 | TA to Governance | 30,000,000 | 30,000,000 | |
| Total | 1,030,000,000 | 1,000,000,000 | 524,444,444 | 475,555,556 | |
H1 Expenses: High Level Expenses
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 |
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.