Associated Risks & Mitigation
Overview of Swiss Verein Considerations
The Telcoin Association operates as a Swiss Verein domiciled in Lugano, Switzerland. This legal structure confers specific responsibilities and obligations on the Council, including governance oversight, compliance with Swiss regulations, and transparency to members and external authorities. When initiating exchange listing efforts, the Council must ensure:
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All Confidential Disclosures (e.g., fees, terms, listing timelines) adhere to both the Exchange NDA and Swiss Verein statutes. This alignment may require discussions with each exchange to clarify what can or cannot be disclosed, ensuring both parties agree on permissible levels of transparency.
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Members’ Activities—particularly when exposed to insider information—do not violate securities regulations or the Association’s internal rules.
NDA & Confidentiality Risks
- Risk: Sharing sensitive information with the Council or external parties (e.g., Exchange 1, Exchange 2) may expose proprietary data, negotiation details, or user information to unauthorized disclosure. This risk is especially pertinent given Swiss Verein transparency standards, which often encourage open communications.
Mitigation:
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Strict NDA Protocols: All Council members and Telcoin representatives involved in negotiations must sign an NDA with the Telcoin Association.
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Limited Access: Only those directly involved in negotiations and who require the information should have access to NDA-protected details.
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Data Segmentation: Confidential information is shared on a “need-to-know” basis, minimizing unnecessary exposure or inadvertent leaks.
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Clear Internal Guidelines: Provide training for Council members and Telcoin personnel on how to handle NDA-sensitive topics, emphasizing legal and reputational implications of non-compliance.
Liability & Regulatory Compliance Risks
- Risk: Failure to comply with Swiss regulations or global financial laws may expose the Telcoin Association and its Council members to legal liability.
Mitigation:
- Legal Counsel: Seek guidance from the Compliance Council and any relevant Swiss legal advisors to confirm all governance actions conform to both Verein statutes and the NDA agreements with the Exchange(s).
- Regulatory Monitoring: Stay informed about securities, AML, and KYC requirements across jurisdictions, particularly in the U.S. and other key regions.
- Clear Governance Rules: Follow established voting processes, transparency standards, and Swiss Verein best practices.
Insider Trading Risks
- Risk: Council members who have inside information on prospective listings could improperly influence trading activity.
Mitigation:
- Blackout Period: The Compliance Council may impose a blackout period based on the materiality of the information involved. This includes, for example, periods when a listing negotiation is at an advanced stage or has been confirmed.
- Internal Reporting: Policy for councils and members to report any suspicious activity to the Compliance Council.
Risks of Discussing Exchange NDA in a Swiss Verein Context
- Risk: Even referring to NDA-protected topics publicly or in broader Association communications could inadvertently violate the exchange’s confidentiality requirements and potentially conflict with Swiss Verein statutes emphasizing transparency.
Mitigation:
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Structured Communication Channels: Limit public details about ongoing negotiations to non-sensitive information, deferring any protected details until authorized by the NDA.
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Council-Only Sessions: Address confidential matters in closed Council sessions or designated channels where all participants have signed NDAs.
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Legal Oversight: Consult legal counsel before disclosing any exchange-specific information to ensure compliance with both Swiss Verein obligations and NDAs.
Abstract
This proposal aims to expand Telcoin’s market presence through listings on select Tier-1 and Tier-2 exchanges—hereafter referred to as Exchange 1, Exchange 2, Exchange 3, etc.—that support both the Ethereum (ETH) and Polygon (Matic) networks. The Telcoin Association Council (the “Council”) will collaborate on all negotiations, legal documentation, and technical preparations. By pursuing new exchanges, The Telcoin Association Council intends to enhance liquidity, increase accessibility for users, and maintain strict compliance with Swiss Verein guidelines and international regulations.
Specification
- Strategic Listings on Key Exchanges
- Focus on exchanges based on liquidity, trading volume, and compliance standards.
- Prioritize platforms supporting both ETH and Polygon networks to facilitate smooth TEL deposits/withdrawals.
- Maintain a global outreach strategy, emphasizing the U.S. and other priority regions for Telcoin’s user base.
- Collaborative Exchange Engagement
- The Telcoin Association will jointly communicate with prospective exchange partners (Exchange 1, Exchange 2, etc.).
- Each listing negotiation is governed by established NDA procedures, ensuring confidentiality and legal compliance.
- Due Diligence & Documentation
Prepare an Exchange Listing Pack detailing:
- Telcoin’s governance structure, audits, compliance posture, and real-world use cases.
- Technical requirements for ETH and Polygon-based liquidity.
- Compile all relevant corporate, technical, and financial documentation for exchange review as needed.
- Proposal Refinement & Governance
- Present a comprehensive listing proposal (redacted for any NDA-sensitive details) to the Council and community.
- Ensure the final proposal complies with the Telcoin Association rules, the Telcoin Constitution, and broader compliance standards.
Rationale
- Multiple Networks
- ETH and Polygon support enables cost-effective, faster transactions while mitigating potential congestion on a single chain.
- Enhanced Liquidity & User Adoption
- Listing on multiple reputable exchanges (Exchange 1, Exchange 2, etc.) diversifies liquidity pools and stabilizes trading activity.
- Regulatory Alignment
- A proven commitment to compliance—especially for U.S.-based exchanges—fosters the Telcoin Platform, TEL, and the Telcoin Association’s long-term growth and mitigates legal/regulatory risks.
- Community Engagement
- Involving the Council and broader community within a transparent governance framework promotes trust and shared responsibility for Telcoin’s future.
Financing & Budget
- Listing Fees
- Fees differ per exchange; The Telcoin Association and the TAO will collaborate on negotiations. Final terms will be disclosed to the Council under NDA, as appropriate.
- Legal or administrative costs (e.g., translation, compliance checks) are accounted for in the total budget.
- Liquidity Provisions
- Exchanges may require an upfront liquidity deposit or arrangement.
- Market makers may be engaged to support stable order books and minimize price slippage.
- Marketing & Promotions
- Potential for joint marketing initiatives, sponsored campaigns, or trading competitions with each exchange (Exchange 1, Exchange 2, etc.).
- Costs for press releases or industry-related advertising should be factored in.
- Funding Sources
- A detailed cost breakdown will be submitted for final approval once negotiation figures are concrete.
- Funding for this proposal is requested from the Platform Council Safe which is proposed in TELIP: Year 2 TEL Allocation Proposal
Implementation
Stage 1: Exchange Research & Initial Contact
- The Telcoin Association and the TAO: Coordinate to identify promising exchanges by evaluating trading volume, user demographics, and compliance standings.
- Council Oversight: Council members provide input on strategic fit, potential challenges, and regional considerations.
Stage 2: NDA & Due Diligence
- NDA Execution: Relevant Council members of the Telcoin Association and the TAO representatives sign NDAs with Exchange 1, Exchange 2, etc., ensuring confidentiality.
- Documentation: Gather corporate governance materials, tokenomics data, and technical specifications for exchange review.
Stage 3: Listing Deck, Negotiations & Proposal
- Listing Deck Receipt
- Telcoin Association and the TAO engage with the exchange to receive a comprehensive listing deck from Exchange 1, Exchange 2, etc.
- This deck details the listing process, fee structure, technical prerequisites, marketing expectations, and timelines.
- Negotiations
- The Telcoin Association and the TAO negotiate with the exchange on fees, liquidity commitments, marketing partnerships, and go-live schedules.
- Adjustments ensure compliance with the Telcoin Association’s regulations and strategic objectives.
- Proposal Finalization
- Once mutual agreement is reached,The Telcoin Association drafts a formal proposal summarizing negotiated terms (redacting any NDA-restricted information).
- Submit the finalized proposal to the Council for approval.
- Snapshot Vote
- After the Council reviews the proposal, a Snapshot vote may be initiated (as required by governance) to gain broader community ratification.
- Approval allows the proposal to proceed to final execution.
Stage 4: Formal Voting Process
Platform Council
- TIP: Requires a 6/8 majority from the Platform Council.
Compliance Council
- Holds veto rights in the event of legal or regulatory concerns, or if the proposal conflicts with Association values.
Stage 5: Finalization & Blackout Period
Post-Vote Coordination
- Once approved,The Telcoin Association and the TAO finalize fee payments, liquidity arrangements, and marketing coordination.
Exchange Announcement
- Exchange 1 (or Exchange 2, etc.) takes the lead on announcing the listing date.
- The Telcoin Association and the TAO must refrain from disclosing any insider details until the official announcement is made public.
Council Blackout
- Council members who possess insider information may be prohibited from trading TEL to prevent conflicts of interest or legal issues.
Stage 6: Listing Launch & Ongoing Monitoring
Launch Day
- The exchange enables TEL deposits and trading.
- Market makers and liquidity partners monitor the order books to maintain stability.
Community Update
- Council members and Telcoin disseminate official updates once NDA constraints no longer apply.
Performance Review
- The Telcoin Association and the TAO periodically review trading volume, user adoption, and liquidity.
- If needed, adjustments or market-making strategies can be deployed to optimize performance.
Reporting & Transparency
- Council Updates
- The Telcoin Association and the TAO will provide progress reports in accordance with NDA obligations. While this may limit public disclosure, it ensures structured decision-making and communication on critical milestones.
- Community Communication
- Non-confidential updates are posted on official Telcoin Association forums, ensuring compliance with NDA requirements.
Performance Metrics
Tracking & Market Making
- Telcoin and the Council will monitor trading volume, user engagement, and liquidity, while utilizing market makers to maintain healthy order books.
- Any notable challenges or significant developments will be addressed in follow-up proposals or discussed during Council sessions.
Final Notes
By adhering to the Telcoin Association standards, enforcing rigorous confidentiality measures, and engaging in close collaboration at every step, Telcoin Association’s Councils aims to responsibly increase TEL’s market presence. This governance-driven strategy seeks to optimize liquidity, drive user adoption, and strengthen the Telcoin Platform’s Ecosystem, all while upholding the legal and regulatory responsibilities that support a transparent and secure environment for every stakeholder.