TELIP: Banking the Internet of Money

[telcoin_paul]

TELIP: Banking the Internet of Money

Author: Paul Neuner, CEO Telcoin Holdings Pte Ltd
Date: August 2025

Abstract

This proposal requests 5 billion TEL tokens from the Treasury as collateral to secure equity financing for Telcoin Holdings Pte Ltd’s Digital Asset Bank and global subsidiaries. In exchange, the Association receives: (1) 5% annual yield via SAFE notes based on collateral value, (2) dedicated digital asset banking services for the entire ecosystem, and (3) enhanced commercial services for validators and developers. This partnership transforms dormant treasury assets into active infrastructure that unlocks blockchain finance for 7 billion mobile users. Target for return of escrow to Telcoin Association within two years.

Motivation

The $7 trillion daily foreign exchange market—monopolized by 20 banks charging $250 billion annually—exemplifies finance’s fundamental problem: antiquated infrastructure operating like “mailmen on horseback” for digital value transfer.

Blockchain promises transformation, yet remains disconnected from traditional banking, fragmented across thousands of networks, and 99.9% of currencies denominated in USD. Without regulated banking integration, blockchains merely abstract existing system weaknesses—costing users more time and money than traditional alternatives.

The solution requires three elements working in concert:

• Regulated banking providing compliant on/off ramps and local stablecoins

• Telecom distribution reaching billions through existing infrastructure

• Unified governance aligning incentives across the value chain

Telcoin uniquely combines all three. Our conditional Digital Asset Bank charter (launching upon this financing) bridges the $4 trillion blockchain economy with traditional finance. GSMA consortium blockchain standardization enables distribution through mobile operators reaching 7 billion subscribers. The Association structure creates shared ownership across stakeholders, enabling the primary actors involved in the production of the system to mine TEL rewards and represent their interests in decisions regulating the Platform and TEL token.

This proposal activates these advantages by converting dormant treasury assets into productive capital, securing a first-mover position in banking the Internet of Money.

Specification

Token Allocation: 5 billion TEL from Association Treasury alongside Paul Neuner’s 3.5B TEL as collateral (total 8.5B TEL).

Escrow Structure:

• Third-party custody (BitGo/Coinbase)

• Serves as collateral for Alpha Investor financing

• Returns to Association upon successful Series A or financing completion

• Subject to liquidation only upon specific default triggers

Association Benefits:

1. Annual Yield: 5% SAFE notes ($250M cap, 80% discount rate) based on escrowed TEL value at $0.005/token

   • $1.25M annual yield in SAFE notes on 5B TEL

2. Comprehensive Banking Services:

   • Priority access to US Digital Asset Bank (Q3 2025 launch pending this financing)

   • Global stablecoin banking across 25+ currencies

   • Institutional services for Association entities

   • Integrated liquidity provision on TELx

3. Enhanced Ecosystem Support:

   • For Validators: Complete installation, staking services, treasury management

   • For Developers: White-label wallet infrastructure, compliant banking APIs

   • For Users and Stakers: Direct fiat-to-stablecoin rails covering 3 billion users by year-end

   • For Liquidity Miners: Banking and liquidity provision built into the Telcoin wallet and the TELx interface

Rationale

Strategic Imperative: Banking represents the critical missing infrastructure preventing blockchain adoption. While networks proliferate and applications emerge, absence of regulated bridges to traditional finance limits utility to speculation rather than commerce.

Competitive Advantage: This partnership creates the only blockchain ecosystem with dedicated, regulated banking—a moat competitors cannot replicate without years of regulatory work and billions in telecom partnerships.

Risk/Reward Profile:

• Downside protected: 5% annual yield in equity exceeds Treasury returns in equity, while maintaining TEL ownership

• Upside unlimited: Ecosystem ownership in the entity banking global blockchain adoption and maintain TEL ownership

• Collateral preserved: Multiple paths to token return including Series A, revenue milestones

Timing Critical: Regulatory windows closing as competitors pursue similar strategies. First regulated bank to market captures dominant position through network effects.

Implementation

Phase 1 (TELIP Duration): Token transfer to escrow upon sequential governance approval by first the Platform Council then the Treasury Council

Phase 2 (H2 2025): Bank launch with initial stablecoin offerings

• eUSD for US market

• Regional stablecoins for key corridors

• Validator banking services activated

Phase 3 (2026): Global expansion

• 25+ stablecoin currencies

• 3 billion user coverage

• Full ecosystem integration

Governance: Quarterly reporting on escrow status, banking metrics, and yield distributions

Conclusion

This proposal transforms dormant assets into productive infrastructure, securing Telcoin’s position as the bridge between traditional and blockchain finance. The combination of guaranteed yield, ecosystem banking services, and strategic positioning creates unprecedented value for all stakeholders while maintaining treasury principal.

Banking isn’t just another service—it’s the foundation enabling everything else. By approving this proposal, the Association doesn’t just fund a bank; it funds the future of money itself.

[telcoin_paul]

Telcoin to TAO Amendment to License and Services Agreement

This Amendment to the License and Services Agreement dated January 14, 2025 (the “Agreement”), between Telcoin Holdings Pte. Ltd. (“THPL”) and Telcoin Autonomous Operations Ltd. (“TAO”), acting for itself and as agent of Telcoin Association (“TA”), is entered into as of ________, 2025.

RECITALS

WHEREAS, the global transition to blockchain finance requires regulated banking infrastructure to bridge traditional and digital economies;

WHEREAS, THPL has secured conditional approval for a Digital Asset Bank charter and requires capital to launch operations serving the Telcoin ecosystem;

WHEREAS, TAO/TA possesses treasury assets that can be productively deployed as collateral while maintaining principal preservation;

WHEREAS, this arrangement creates mutual benefits through yield generation, ecosystem banking services, and strategic market positioning;

NOW, THEREFORE, in consideration of mutual covenants herein, the parties agree:

1. TOKEN TRANSFER AND ESCROW

1.1 Transfer Authorization
TAO shall transfer 5,000,000,000 TEL tokens (“Collateral Tokens”) to THPL-designated escrow within 30 days of execution.

***-> Target to release TEL escrow entirely within two years.***

1.2 Escrow Administration

• Custody with institutional providers (BitGo, Coinbase, or equivalent)

• Quarterly attestation reports to TAO

• Transfer restrictions per Alpha Investor agreements

• Return mechanisms defined in Section 4

2. CONSIDERATION AND ENHANCED SERVICES

2.1 Yield Generation
THPL shall issue monthly SAFE notes to TA totaling 5% annually of Collateral Token value:

• Valuation: $0.005 USD per TEL

• Terms: $250M cap, 80% discount

• Payment: Monthly (1/12 of annual amount)

• Example: 5B TEL generates $104,167 monthly (or $1.25M per annum)

2.2 Digital Banking Services
THPL commits to providing without additional charge:

Institutional Services:

• Dedicated relationship management for TA/TAO

• Priority onboarding for all Association entities

• Treasury management and yield optimization

• Custody services for digital assets

Validator Services:

• Full-service staking infrastructure

• Automated reward distribution

• Tax reporting and compliance support

• Fiat-to-crypto treasury management

Developer Services:

• Banking APIs with preferential pricing

• White-label wallet infrastructure

• Compliance-as-a-service integration

• Technical support and documentation

2.3 Ecosystem Development

• Marketing support for validator recruitment

• Business development for application partners

• Regulatory advocacy benefiting ecosystem

• Technical integration assistance

3. COLLATERAL TERMS AND RETURN CONDITIONS

3.1 Successful Return Triggers
Collateral Tokens return to TAO upon earliest of:

• Qualifying Series A ($10M+ at $300M+ valuation) by December 31, 2027

• Alpha Investor returns exceed principal

• Mutual agreement of parties

→ TEL escrow can also be proportionately released at any time by replacing it with USD. For example, regardless of how high the price of TEL may appreciate, TAO can at any time release 2.5B TEL from escrow with $5.9M, or all of the escrow with $11.8M.

3.2 Default Protections
THPL shall maintain:

• Minimum $20M operational assets

• Regulatory compliance across jurisdictions

• Quarterly progress reporting

• Insurance coverage where available

4. RISK ACKNOWLEDGMENT

4.1 Collateral Risk
TAO acknowledges Collateral Tokens may be liquidated if THPL fails to meet Alpha Investor obligations, with liquidation proceeds first satisfying investor claims.

4.2 Mitigation Measures

• Liquidation only upon specific defaults

• Pro-rata liquidation preserving maximum tokens

• SAFE note compensation for any liquidated tokens

• Multiple cure periods before liquidation

5. GOVERNANCE AND REPORTING

5.1 Quarterly Reports shall include:

• Escrow status and any changes

• Banking services utilization metrics

• Financial performance indicators

• Regulatory developments

• Strategic initiative updates

5.2 Annual Reviews
Parties shall meet annually to assess service levels and explore expanded collaboration opportunities.

6. TERM AND TERMINATION

This Amendment remains effective until all Collateral Tokens return to TAO or are otherwise disposed per agreed terms. Banking services continue regardless of collateral status, cementing permanent ecosystem partnership.

7. INTEGRATION

This Amendment supplements but does not replace the Agreement. In conflict, this Amendment controls solely regarding matters herein.

EXECUTED as of the date first written above.

TELCOIN HOLDINGS PTE. LTD.
By: ________________________
Paul Neuner, CEO
Date: _______

TELCOIN AUTONOMOUS OPERATIONS LTD.
By: ________________________
Parker Spann, Executive Director
Date: _______

ACKNOWLEDGED BY TELCOIN ASSOCIATION
By: ________________________
Parker Spann, Platform Council Member
Date: _______

[bluelights]

I think there may be a misunderstanding of what this proposal is actually asking. To be clear:

The 5B TEL is not being spent or sold. TAO retains ownership of these tokens at all times. They are placed in escrow as collateral with institutional custodians and subject to strict return conditions. The tokens can also be proportionally released at any point with USD substitution, regardless of price appreciation.

This is not equivalent to unlocking treasury for exchange listings. Tier 1 listings require irreversible expenditures of treasury TEL (a sunk cost). By contrast, escrow collateral is consistent with the Association’s long-term treasury policy: it preserves principal, generates yield, and unlocks ecosystem-wide services without depleting treasury reserves.

The Association actually earns yield on otherwise dormant assets. The 5B TEL in escrow generates monthly SAFE notes worth 5% annually on a fixed $0.005 valuation. That’s $1.25M per year in additional treasury value from tokens that would otherwise sit idle.

This isn’t a response to fundraising shortfalls. External fundraising can succeed, but collateral strengthens the bank’s balance sheet, demonstrates ecosystem “skin in the game” to regulators, and enables broader institutional partnerships.

Governance safeguards are built in. There are quarterly attestations, minimum operational asset thresholds, cure periods, insurance, and clear triggers for token return. Risk is carefully mitigated.

The ecosystem benefits directly. This amendment ties TAO and the Association into permanent access to banking, custody, staking infrastructure, compliance services, and developer APIs. Unlike a one-time listing fee, these are durable, compounding advantages for the entire community.

So rather than diverting resources away from the ecosystem, this proposal is about leveraging existing assets in a capital-efficient way that both preserves value and grows it, while also expanding Telcoin’s strategic reach.

[bluelights]

It’s important to distinguish between custody and ownership here. When tokens are placed in escrow, TAO doesn’t hold the keys during that period, but it does retain beneficial ownership — the tokens are not sold, spent, or transferred away. They remain TAO’s assets under conditional custody with institutional providers.

The “risk acknowledgment” section simply spells out the worst-case scenario if THPL were ever to default on Alpha Investor obligations. Even in that case, the safeguards mean:

Liquidation can only occur after cure periods and very specific defaults.

Any liquidation would be pro-rata, preserving as many tokens as possible.

TAO receives SAFE note compensation for any tokens liquidated.

TAO can at any time substitute USD (≈$11.8M for all 5B TEL) to release the tokens from escrow entirely.

So while TAO doesn’t physically custody the tokens “at all times,” it retains ownership rights throughout, with multiple protections in place to ensure preservation and return.

[Mr.A.Hamilton]

Subject: Concerns and Questions Regarding TelIP Proposal – Transparency, Risk, and Governance

I want to start by saying I’m genuinely excited about the Telcoin digital asset bank. It’s a huge step forward for the ecosystem and could unlock real utility and adoption. However, the way this proposal has unfolded raises serious concerns that deserve to be addressed before such a major decision is made.

1. Timeline and Urgency Without Sufficient Explanation

In the July 9th Telx meeting, we were told the submission would be made by the end of July, showing $22.6 million in the bank, with a full charter expected by the end of August and operations live in September. Now, in late August, the council is being asked to approve 5 billion TEL with a hard September 2nd deadline — giving barely two weeks for review.

Why was this left to the last minute with no earlier warning to the community or council? What changed since July that has created this urgency?

2. Risk to the Association if Series A Fails

The proposal is heavily dependent on a successful Series A raise. But what happens if that fails and TEL is liquidated?

In the recent council meeting, Paul mentioned that the Telcoin Association would receive equity in the company if TEL is liquidated — but the details are still unclear:

• Does the proposal specify whether the equity would be based on the market value of TEL at the time of transfer to escrow, at the time of liquidation, or another valuation method?

• How is that equity structured and protected in the event of a failed Series A?

• If Series A fails, what is the company’s actual plan to move forward and make that equity worth anything?

• Without those funds, how will the bank operate or generate value for shareholders, including the Association?

These are essential questions, because if the equity has no viable path to generating value, then we are risking more than half of the Association’s future budget for a position that could become worthless.

3. Impact on Telcoin Association’s Broader Mission

While integrating the bank with the Telcoin network makes sense, the Telcoin Association was designed to be a decentralised, neutral enabler for multiple digital asset banks — not just one.

Tying the Association’s future so closely to a single project could limit its broader mission and flexibility. Shouldn’t the TAO remain open to working with other digital asset banks and fintech partners in the future?

4. Transparency and Community Trust

This proposal involves allocating more than half of the Association’s future budget, yet has come with minimal lead time or opportunity for community input. That’s a serious governance concern, especially in a decentralised ecosystem that relies on trust and participation.

We need to understand how such an important decision was allowed to reach this level of urgency without earlier communication or community dialogue.

Final Thought

I believe we’re now in a position where this proposal has to pass — and that’s exactly what’s concerning. The pressure surrounding this decision, the lack of timeline transparency, and the rushed process put both the Association’s mission and long-term credibility at risk.

Again, I’m excited for the bank — it’s a major opportunity — but we need Telcoin as an organisation to take these concerns seriously and commit to being far more transparent with timelines, updates, and strategic shifts moving forward, so we don’t find ourselves in this kind of situation again.

Side note: I’m sorry for deleting previous posts posted to hastily — I just wanted to round everything up into one clean reply to make it easier for others to follow and engage with.

[bluelights]

Thanks for consolidating your thoughts — they raise valid points and this kind of dialogue is exactly what governance is here for.

The short timeline is not ideal, but it reflects the Bank’s regulatory process, not a lack of planning on the Association side. Once conditional approval was granted, deadlines for capitalisation and operational readiness were set externally, and our role as a council is to align quickly so the ecosystem can take advantage of this opportunity.

This amendment isn’t about draining treasury; it’s about capital efficiency — putting dormant assets to work in a way that preserves principal, generates yield, and ties the Association directly into regulated banking services that will benefit the whole ecosystem long-term.

We should acknowledge that this has never been done before — bridging a decentralised treasury with a regulated digital asset bank is new ground. The process will improve over time, but right now the priority is to get this across the line and launch a Bank that gives Telcoin a unique strategic advantage.

[Mr.A.Hamilton]

@bluelights Thanks for the reply

I’d like to return to a few of the questions raised earlier, particularly around how this proposal ties the decentralised Telcoin Association (TAO) to a centralised private company, and does so using over half of the TAO’s projected 10-year budget.

We’re being told the Association would receive a SAFE note (Simpl Agreement for Future Equity) in exchange for this contribution. But it’s important to clarify what that means in practice.

A SAFE is not equity today. It’s a promise that if the company raises funds in the future (like a Series A), the investor will get equity — based on terms like a discount or a valuation cap.

For example, if the company raises a Series A at a $100 million valuation, and the SAFE had a $50 million cap, then the TAO’s TEL-backed SAFE could convert into shares at the lower valuation (i.e. it would receive double the shares it would at $100M). But that’s only if the raise succeeds.

This means:

• There’s no guarantee of equity right now.

• If the Series A fails, the fallback is direct equity — but the value of that equity depends on whether the company can actually move forward without the funds, what is the plan of this happens?.

• If the company can’t operate, the equity may effectively be worthless.

In contrast, private investors backing this same round may be getting 5% equity, secured by the same SAFE note mechanism, but without risking a public treasury or decentralised mandate. That raises a key question:

If TAO is taking on significantly more risk — not just financially, but reputationally and structurally — shouldn’t the return be greater than or at least proportionate to that risk?

Imagine two scenarios:

• Investor A contributes $5 million privately and gets 5% equity via a SAFE.

• Investor B (the TAO) risks 5 billion TEL (worth ~$25 million at $0.005) from a decentralised treasury, and also receives 5% via a SAFE — yet their funds are being used to unlock the Series A round that benefits all parties.

Is this fair or reflective of the value and risk being offered?

Again, I want to emphasise: I’m excited for the Telcoin digital asset bank. I believe it’s an important evolution for the ecosystem. But the structure and timing of this proposal raise legitimate questions about risk distribution, governance transparency, and strategic alignment between Telcoin Holdings and the TAO.

I believe the real long-term utility lies with the Telcoin Association, the network, $TEL, and the MNOs — not just in one company. These components have the potential to support multiple digital banks in the future. I don’t like seeing that broader opportunity put at risk by tying too much of the ecosystem to a single outcome.

[bluelights]

Thanks for raising these points — they’re exactly the kind of questions governance is meant to surface.

You’re right that a SAFE in itself is not equity today, but the dividends are — $1.25M annually, paid monthly, from tokens that would otherwise sit idle. On top of that, the amendment secures long-term ecosystem benefits like custody, staking, compliance services, and developer APIs, while preserving principal through escrow protections and return triggers.

This is new ground — no other ecosystem has bridged a decentralised treasury into a regulated digital asset bank before. With that comes risk and reward, and it’s the council’s responsibility to weigh those carefully. The council are actively discussing and will action what we see fit as the right way forward for the Association and the ecosystem.

[parkerspann]

The TELIP has received overwhelming support from the Councils and community. Therefore, it has been formally proposed to snapshot as a TELIP for the Platform Council for voting.

Snapshot Proposal Link: https://snapshot.box/#/s:telcoinplatformcouncil.eth/proposal/0x53dc2b42659740d30d11888f8c04d68f637383a78aafcde99ff40592f357d55a

[Mr.A.Hamilton]

@bluelights I appreciate you taking the time to engage with these concerns directly.

A few additional points I’d like to raise:

1. The Asymmetry of Risk vs. Reward
You mention the SAFE could provide $1.25M in annual dividends, along with access to banking services like custody, staking, and compliance APIs — while preserving principal via escrow protections. That’s helpful context.

But the core concern remains:
• The TAO is putting over half of its future budget at risk.
• Even with return triggers, the funds are locked, reducing flexibility.
• The upside (5% equity and services) doesn’t clearly match the scale of the risk, especially in the event the Series A falls through or operations stall.

Is this the best risk-reward ratio for a decentralised ecosystem treasury?

2. The TAO’s Role Should Be Open and Scalable
   I believe the Telcoin Association, $TEL, the network, and MNO integration are the real sources of long-term value in this ecosystem.

The Association’s strength lies in its neutrality — it should be positioned to support any compliant digital asset bank, not tied so heavily to one.

The reality is: banks need access to MNO-powered infrastructure more than the TAO needs any one bank. With many more digital asset banks likely to emerge soon, the Association’s role should be that of an open network provider — not a high-risk strategic investor.

The TAO should not need to lock up massive treasury allocations to deliver ecosystem utility

3. Accountability Matters
   Lastly, it’s worth pointing out that many of the open questions being raised — particularly around contingency plans, Series A viability, equity structuring, and SAFE mechanics — are actually aimed at Telcoin Holdings, not just the council or community.

If the TAO is being asked to commit such significant resources, it’s reasonable to expect clear, direct answers from the party requesting that commitment.

Again, I fully support the vision of a Telcoin-powered digital asset bank. But protecting the decentralised foundation we’re building on is just as important. Let’s make sure we’re setting the right precedent.