TELIP: Expanding CEX Liquidity Coverage

Abstract

This TELIP proposes authorizing the Treasury Council to allocate up to 125 million TEL tokens from the Treasury Council Safe to support enhanced liquidity provisioning for centralized exchange (CEX) accounts. This strategic allocation aims to improve user onboarding, align exchange infrastructure with the Telcoin application, and support broader ecosystem liquidity.


Motivation

Improving TEL liquidity on centralized exchanges (CEXs) is critical to increasing accessibility, reducing trading friction, and supporting sustainable growth of the Telcoin ecosystem. Currently, users may encounter barriers when acquiring or transferring TEL through CEX platforms due to limited liquidity coverage, which can hinder adoption and slow ecosystem expansion.

By funding enhanced liquidity across key CEX accounts, the Association can ensure a smoother user experience, enable more efficient price discovery, and provide greater confidence to both retail and institutional participants. This initiative also increases TEL’s visibility and utility across the broader crypto market, creating favorable conditions for further exchange integrations and partnerships.

Furthermore, deepening liquidity on one or more exchanges enables secondary liquidity effects, where additional platforms can draw from or mirror the enhanced liquidity pool—amplifying impact without requiring proportionally greater resources.


Specification

  • Disbursement: Up to 125 million TEL tokens

  • Source: Treasury Council Safe

  • Purpose: To fulfill liquidity requirements for centralized exchange accounts associated with Telcoin

Execution and liquidity coordination will be managed by Telcoin Autonomous Ops (TAO) on behalf of the Association.


Rationale

Centralized exchanges play a vital role in enabling access to TEL for new users, strategic partners, and institutional participants. Without adequate liquidity on these platforms, user acquisition and utility are constrained. This proposal provides a direct and cost-effective method for addressing that challenge.

Strategic benefits include:

  • Ecosystem Liquidity Expansion – Establishes deeper TEL liquidity on key CEXs, which can be leveraged by other platforms, expanding the network effect with reduced capital expenditure.

Risks and Considerations

  • Exchange Confidentiality – Some exchange partnerships may require confidentiality until they are officially announced.

  • Future Requirements – Additional exchange listings or integrations may still involve further negotiations, technical requirements, or liquidity commitments.


Budget and Funding

  • Total Requested: 125 million TEL tokens

  • Funding Source: Treasury Council Safe

  • Use of Funds: To meet liquidity requirements for ongoing operations and integrations with centralized exchanges.


Implementation Plan

  • The Treasury Council will authorize the disbursement of up to 125 million TEL tokens as needed.

TAO will manage execution and coordination of liquidity provisioning, working directly with exchange partners on behalf of the Association.

5 Likes

This proposal sounds makes a lot of sense Arie.

Is 125m TEL enough? Is there a proposed distribution mechanism of some sort (pre-emptive) or just allocate as needed if/when shortfalls happen (reactive) as volume goes up on certain exchanges?

Great proposal! Why was 125 million TEL chosen as the cap?

Points for future consideration:

  • Which exchanges will be prioritized, and why?
  • How will the TAO determine how much liquidity to allocate to each exchange?
  • Will tokens be used for active market-making, or simply deposited for the CEXs to manage?
  • Will the liquidity be deployed in phases, or all at once?

Excited to see how this develops.

1 Like

It’s made to be released as needed for any liquidity requirements or shortfalls.

1 Like

Unfortunately you will not get an answer for your first question.

But it would be an established threshold that we need to meet in usd based …so the number is based on a low price per token to hedge. So ideally we would not need the full amount.

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Great proposal. I fully support