Please find below a link to the Telx Council’s summary report following the conclusion of the Merkl Proof of Concept:
tldr: 6. Conclusion
The TELx Merkl POC ran for four periods (p37–p40) across 19 participating wallets on the Base ETH–TEL v4 pool. Two periods of full six-campaign comparison data (p39 and p40) provided the evidential basis for this conclusion.
The core finding is clear: Merkl distributes rewards more broadly than the native formula. Every campaign variant in every period produced a lower Gini coefficient than Native TELx. The bottom half of participants received five to six times more of the reward pool under Merkl than under native.
The data also reveals important nuance. Merkl’s improvement over native is consistent at the Gini level, but top-1 concentration can exceed native in periods where a single LP holds a dominant time-weighted position — as occurred in p40. This is not a failure of the system; it reflects Merkl correctly rewarding genuine liquidity depth. But it means the council should monitor both measures and not treat Gini alone as a complete picture of distribution health.
Campaign F (50/25/25) was the most equitable variant in both periods. The difference between variants on the Gini measure is relatively narrow, but the choice of parameters significantly affects which LP profiles benefit most — making parameter selection a meaningful governance decision rather than a technical one.
The $6,000 POC investment produced four weeks of wallet-level data across six parameter configurations on a live pool. The council now has the quantitative foundation to make an informed decision. The data supports moving forward.