Telos Economic Development Plan 3 (TEDP3) | Full Version
Pushing through existing economic challenges to allow Telos to unlock growth to liquidity, TVL and market capitalization
Overview
Telos has steadily built in all areas for over four years since the project began, expanding our technology, value and community in important ways. The Telos Foundation, Telos Board and Telos Core Developers continuously monitor the current economic state of Telos, the broader crypto industry, and the world to take advantage of our unique opportunity as a nimble, user-governed blockchain. In a joint effort, we propose revisions to our economics to thrive better under the current and expected economic conditions.
The Telos Economic Development Plans (TEDPs) aim to find consensus within the community around approaches to breaking through impediments and addressing economic opportunities to advance Telos. The TEDP3 is the latest approach to this. With it, we seek to face challenges, assess features that are not increasing success, and take advantage of a clear opportunity to improve Telos's capitalization and grow faster.
Actions of the TEDP3
If the Telos community votes to pass the TEDP3 Telos Amend proposal, it will amend the TBNOA (Telos Blockchain Network Operating Agreement) governance document and instruct the Telos block producers to enact and facilitate the following actions:
Amend in Clause 49 of the TBNOA as follows:
- Telos Core Developers: Increase funding by 100,000 TLOS/month to expand work capacity and dedicate resources to improving user experience, further improve and prove Telos high speed and capacity.
- Economic Development Fund: Eliminate 150,000 TLOS/month in unneeded funding.
- Ignite Grants Funds: Establish 500,000 TLOS/month in new funding to attract and support partners.
- Telos Fuel Incentive Fund: Establish 1,700,000 TLOS/month in new funding to grow TVL.
Instruct the Telos block producers, Telos Foundation and Telos Core Developers to:
- Reallocate Stagnant Funds: Transfer 1,000,000 TLOS from Telos Works account (‘works.decide’) and transfer the balance of TLOS funds from the Economic Development Fund (‘econdevdfund’) to the Telos Fuel Incentive Fund account to pre-fund the rapid deployment of funds to begin the TEDP3 actions immediately.
- REX Staking: Revise lock-up period to 10 days from the unstaking command to match the sTLOS unstaking period and better secure the on-chain value.
- RAM Unstaking: Modify RAM selling to eliminate selling RAM below an account minimum set by the active block producers and increase the RAM given to new accounts to this level to improve a new user experience while preventing theft through Sybil attacks.
- Total Token Supply: Deflate the total token supply to 355,000,000.0000 TLOS by eliminating 208,670.6674 TLOS from the ‘tlosrecovery’ account.
- Maximum Token Supply: Reduce maximum token supply from 10 billion to 1 billion to increase investor confidence.
Our Opportunities
Telos has the world’s fastest, highest capacity Ethereum Virtual Machine (EVM) and the only EVM that prevents front-running (a.k.a. MEV), which is one of the most intractable impediments to greater EVM adoption. From observing several other EVM-type projects recently, it appears that increasing TVL also increases the market capitalization of the chain itself in a powerful and relatively predictable way.
We have the opportunity to take advantage of this pattern in an attempt to bring the market value of Telos more in line with its relative utility and technological value compared with other top smart contract platform blockchains. To do so, we intend to refine the economics of Telos in a number of ways that eliminate some costs while increasing the spending in others in a Keynesian economic model intended to foster growth in specific areas that will incentivize an increase in TVL and as a result, TLOS market cap.
Our Challenges
Despite our proven innovation, superior technical specs significantly increased staff, and aligned and supportive community, Telos has so far yet to achieve a market capitalization even 1/100th that of EVM blockchains with speed, capacity and demonstrated resilience far below what Telos and TelosEVM offer. There are a number of challenges that we must address before we can do this.
Lack of Top Exchanges
Over the past eighteen months, Telos has significantly improved our adoption from exchanges, and yet we still are not listed on the highest profile, highest reputation exchanges, including Coinbase, Binance, Gemini, FTX and Kraken. Every attempt has been made, and all requirements met; however, listings on these top exchanges remain elusive. It’s clear that these exchanges do not list tokens due to technical excellence, fiscal responsibility, or good blockchain citizenship, as they often claim. If this were true, TLOS would have been listed on these exchanges long ago. The answer to this challenge is that what exchanges truly care about above all else is a token's liquidity and trading volume: how much will the exchange make in trading fees? The only way to address this and get listed on these exchanges — and therefore unlock access to millions of users and investors — is to vastly increase TLOS liquidity, trading volume and economic activity.
Limited Fiat On- and Off-ramps
It’s not easy to get fiat funds onto or off of Telos, which is a major impediment to mass adoption. While we have steadily increased available options, our progress has largely been in reducing the number of steps it takes to convert TLOS tokens to some other token that can be withdrawn or deposited in a single step. Solving the lack of top exchanges will help with this, as well as bringing on new partnerships to make direct TLOS-to-fiat a single-step transaction. Here as well, increased liquidity and funds to attract these on- and off-ramp partners will turn TLOS into a more useful currency asset.
Low Liquidity and TVL
The root of many of our problems lies in the very low liquidity for TLOS and other tokens on Telos native and Telos EVM. This is a chicken-and-egg problem: there’s no liquidity, so DeFi users can’t really engage; there’s little DeFi user engagement, so no one adds liquidity. TVL measures the combined value of all the tokens on the chain that are locked into some liquidity pool. In many instances, increasing a chain’s TVL has also increased its market capitalization in a reasonably predictable pattern.
Despite our strong staking rewards via Resource Exchange (REX) staking, the Telos TVL has not grown to the critical mass that can kick off a leap in valuation. REX staking is actually an impediment because that value is locked in a single, non-tradable token instead of liquidity pools that require that the TLOS be locked with a matching value of a second token, doubling the TVL from the same amount of tokens.
To address this, we will introduce sTLOS, a lossless single-asset staking pool on Telos EVM that receives the same rewards and token lockup period as REX but also creates a deposit receipt token (sTLOS) which can be further staked into two-token liquidity pools to earn additional rewards and increasing the network’s TVL. The integration of an ERC4626 tokenized vault standard demonstrates our continuous innovation and ability to stay on top of market developments.
Limited Financial Support for Dapps
Many blockchains have multimillion-dollar incentive programs for acquiring and supporting new dapps to deploy on their platform. Telos also offers this with the Ignite Grants, but nowhere near the amounts that other chains offer, particularly at the current TLOS prices. We recognize the need to provide more opportunities to help foster dapps on the Telos network, and the way to achieve this is to increase the amount of funds available to them.
No Industry Whales Behind Us
Due to the way Telos originally released its tokens with no ICO, a mere 5% reward shared by a broad group of launch group founders, and a one-time haircut to less than 1% of the top EOS genesis accounts, Telos has one of the flattest distributions of any blockchain. While this is great for governance and community-building, it excludes Telos from many personal networking opportunities among crypto whales that have helped other chains advance.
Telos is actively exploring more opportunities to increase liquidity and trading volume via partnerships with established, sophisticated crypto investors to help bolster our awareness in the industry and improve our network access within the space. This is in addition to reducing the limitation on the size of OTC deals we make. We believe TLOS will be able to promote itself as a more enticing asset to whales and institutional investors as a result of these measures.
User Experience Challenges New User Acquisition
Telos EVM greatly expanded access to the network to users who felt comfortable with EVM interfaces like MetaMask. The native interface tools like Anchor Wallet have proven to be an adoption and onboarding friction point for many of our potential users. We must address this by investing more development resources into streamlining the onboarding process. This can be done by increasing TCD staff, posting development bounties or Telos Works funding, and using the Ignite Grants Fund.
Another challenge to onboarding new users is that while Telos offers free account creation for users, this can be and has been exploited by Sybil attacks that create a large number of new accounts and then sell off the RAM from each one. To prevent this theft, we have been forced to reduce each account's RAM and resources to such a low amount that newly created accounts now cannot do much of anything without being hit by resource problems. To remedy this and eliminate this frustration point that occurs at the worst time for user experience — immediately after account creation — the TEDP3 will ask the block producers to set a floor level of RAM for each account, below which RAM cannot be sold. This will enable new accounts to receive a reasonable amount of free RAM to begin using Telos immediately and prevent the attraction of Sybil attacks that would steal RAM from multiple new accounts.
What Hasn’t Worked For Us (Yet)
Telos has many advantages that should overcome whatever challenges we face, but empirically, these are not yet having that desired effect. It seems that many of these features are not what the market truly values or not what it values during these times or at this stage in the adoption curve. In light of this, we have assessed which traits may be the result of priorities-setting that is not optimized for adoption at this time and market. Some of these features may work well once specific blockers are removed.
Zero Inflation
Telos has not created any new TLOS tokens since inflation was halted as a result of the first TEDP. In most markets, this sign of fiscal responsibility would be rewarded. However, it has so far failed to help Telos. Other blockchains with less fiscal responsibility (often far less) thrive while the TLOS price has languished. The conclusion is that the level of fiscal responsibility we have shown to date is not paying off in terms of market capitalization and that loosening our purse strings to spur faster growth may be a much better strategy.
High Speed and Capacity
Telos is a world leader in speed and capacity and the world’s fastest, highest capacity EVM, and yet this is not expressed in the market capitalization of the project. Correcting this could be a huge boon for Telos, but there are impediments, particularly the lack of liquidity, on- and off-ramps to fiat, and some EVM infrastructure needs. In addition, the market has muddled consumer understanding of speed and capacity specs with a multitude of “theoretical” transactions-per-second numbers that haven’t the thinnest shred of proof that our real numbers do not sufficiently stand out from the pack of made-up numbers.
Of the challenges before us, this is one of the first we will be able to thoroughly address. Our Stagenet for testing and improving capacity has been operating for two months now, seeking the best ways to maximize our transaction capacity and record a high number of rapid transactions on the Telos mainnet as incontrovertible truth in our figures. For the other impediments in the way of maximizing our tested and proven claims as the fastest blockchain in existence, we will need to quickly onboard or build the infrastructure pieces missing from Telos EVM and greatly increase liquidity. Doing so is possible only with more funding allocations from the reserves.
Front-running/MEV Prevention
Our position as the first and only EVM to prevent front-running (a.k.a. MEV) on DeFi applications is also not receiving the type of adoption surge that would be expected of such an important and unique feature. Largely this is impeded by the same challenges facing our speed and capacity claims, and solving those will also allow this feature to become more prominent. In addition, we will need to utilize our marketing and publicity resources to better educate our users on the immense benefits this feature provides.
Fostering Growth
The goal of this economic development plan is to provide the funding needed to incentivize more value to be locked on Telos and Telos EVM, which will unlock a virtuous cycle of increased TVL that increases market capitalization and activity, and therefore reduces the amount of monthly TLOS disbursements needed by the Telos Foundation, Telos Core Developers, block producers and other funding recipients. This allows these organizations to expand the marketing and development of Telos to further attract TVL growth while spending less TLOS each month. Repeat the cycle.
To achieve these goals, we aim to improve staking of TLOS to optimize TVL growth, provide grants to promising dapps and projects, and introduce new incentives for projects to incentivize their users to lock up more value in the system, hence fueling the virtuous cycle.
Improve Staking
Telos Staking currently receives 1.7 million TLOS tokens per month — 46% of the total monthly distribution from the Telos Reserves. 100% of this goes to the Telos Resource Exchange (REX) pool for those staking on the Telos native chain. There are two problems with this situation: First, users have no incentive to stake TLOS on Telos EVM where the majority of DeFi action is expected to occur. Therefore, TLOS holders either leave their tokens liquid on Telos EVM or stake them in liquidity pools. Second, Telos REX only requires stakers to stake over an initial 4-day period, after which they can instantly unstake at any time to regain spendable or tradable TLOS tokens. While convenient for users, this offers no protection against rapid selling of TLOS on exchanges when market volatility occurs. These tokens are not actually “locked” in pools as demanded by TVL because they are instantly convertible as soon as the initial staking period has passed.
To address these problems, Telos will release a Telos EVM-based single-asset staking pool of TLOS where depositors will receive sTLOS tokens as a deposit receipt. Rewards currently going from the Telos reserve accounts (‘exrsrv.tf’ and ‘tlosrecovery’) solely to REX staking rewards will be divided with sTLOS staking rewards. As a result, sTLOS will constantly grow in value. Returns will be balanced between Telos native (REX) staking and Telos EVM (sTLOS) staking so that TLOS deposited into either staking pool will receive the same rewards. As recompense for the fact that these sTLOS tokens do not count towards user voting weight as REX tokens do, sTLOS owners will enjoy the ability to earn REX-level staking rewards from TLOS staking on Telos EVM. They can then stake the sTLOS deposit receipts along with other assets, if they choose to, for additional staking and farming rewards. (This further staking is not free of the risk of loss the way that sTLOS staking is.)
The Telos Amend proposal required to allow sTLOS staking and share a portion of the REX staking rewards to go to sTLOS staking has already been passed via the ‘reward.stlos’ Telos Amend ballot. A second ballot called ‘equalstaking’ would, if passed, equalize the original 60:40 split between REX and sTLOS staking, respectively, to 50:50. It is currently being voted by the community and passing.
The Telos active block producers were empowered to manage the parameters of REX staking as they believed it is in the community's best interest. Though no specific vote is required to enact this, If the TEDP3 voters vote to adopt and implement this amendment proposal, then the proposers intend to ask the Telos active block producers to change the REX staking 3-day initial lock-up period into a 10-day unlocking period in order to properly align the value of the reward with a lock-up period that reflects the benefits of staking. Both staking pools will then require an identical period of ten days from when the owner triggers unstaking until the REX or sTLOS tokens become spendable. During the 10-day unstaking period, the locked tokens will not receive rewards. These changes better lock tokens into staking pools, meaning owners are less likely to remove them in periods of market volatility. As an additional benefit, adopting this form of unstaking allows us to remove the REX Savings feature, which is meant to add security to accounts by adding a 4-day unstaking period, but generally confuses users more than it helps. With a 10-day lock-up period, REX Savings will become unnecessary.
Incentivize Greater Liquidity
Our critical need for greater liquidity will not be solved without providing a clear incentive to make providing liquidity part of the most profitable way to hold TLOS tokens. The staking rewards paid to REX and sTLOS staking only create incentives for single-asset staking, but to increase TVL we will need to get users to also stake in two-coin liquidity pools to extend this liquidity into functional swap pools.
The Telos Fuel Incentive Fund will both directly add liquidity and incentivize added liquidity from users by providing bonuses to exchanges, dapps and AMMs that encourage and achieve increased staking within their protocols. These incentives can be shared with their users to extend the incentives directly to them. The projects that better demonstrate the capability to increase TVL within their programs will receive the larger distributions from the Fuel Incentive Fund. To enable this, the TEDP3 will create a dedicated source of monthly funds for incentives totalling 1.7 million TLOS — the same amount currently distributed through REX staking–and transfer the balance of funds (roughly 3,839,200 TLOS) from the over-funded Economic Development Fund account (‘econdevfunds’) to the Telos Fuel Incentive Fund account. Of this amount, 150,000 TLOS per month will be allocated to operations to ensure sufficient resources to administer the grants. This program will continue for at least 14 months, distributing liquidity incentive funds of at least 30 million TLOS.
Provide Grants
Grants for dapps, exchanges and tools deploying on Telos will allow us to better support and attract the dapps and infrastructure tools we need to address the noted challenges. Today’s crypto landscape is full of monied platforms giving away large grants to attract tools and dapps to deploy in their platform. In a crypto winter, many struggling developers tap this as a primary funding source to keep their projects alive. Telos will need to grow significantly before we can directly play this game, yet grants are still very beneficial to sparking our growth.
Telos extends the value of our Telos Ignite Grants cash grants by pairing them with technical assistance from the TCD’s Developer Onboarding Engineer(s), which makes the smaller grants we’ve been able to offer more attractive to developers looking to deploy real projects and less attractive to developers just cycling from chain to chain living off grant money. While we have maximized the effectiveness of our grant funds, there’s no denying that we would be able to do even more with more funds. To enable this, the TEDP3 will create a dedicated source of monthly funds for grants totaling 500,000 TLOS per month. This ongoing funding, combined with previously earmarked or deployed funds, will bring available funds to nearly 20 million TLOS.
Increase Development Funding
The Telos Core Developers (TCD) have grown and professionalized significantly since the previous TEDP (called the TULIP plan), and now consists of over 20 full-time employees and contractors working in roles including developers, program and project managers, documentation writers, onboarding engineers, user support and more. However, additional funding will help significantly to increase the development needed to greatly ease and improve user experience, maximize and prove network speed and capacity, and add required services. It also puts Telos EVM in a commanding lead among all EVMs and other technical mandates. Therefore, the TEDP3 will increase TCD funding by one-third from 300,000 TLOS per month to 400,000.
To offset this increase in development funding, the ongoing payment to the Economic Development Fund, controlled by a multi-sig vote of the active block producers, will be eliminated, and the funds held in that account will be reallocated to provide greater liquidity. The account (‘econdevfunds’) was first created by the original TEDP to provide a source of rapidly available funding for things like exchange listings, emergency liquidity, or other purposes at the discretion of the Telos block producers. The fund previously received 150,000 TLOS per month but has almost never been used. These funds will work harder for Telos as increased liquidity.
Clarifying Tokenomics Parameters
Small differences in the Telos tokenomics specs may provide outsized improvements in how investors perceive TLOS. For example, the current total supply of TLOS tokens is 355,208,370.6674. Human beings have a psychological preference for round numbers called whole number bias. For example, part of the attraction of Bitcoin is that there will only ever be 21 million BTC. Though it would have very little impact on the actual tokenomics of Telos, reducing the total supply to even 355,000,000.0000 tokens by burning 208,370.6674 TLOS from the ‘tlosrecovery’ account would appeal to this psychological bias among people as well as make TLOS a slightly deflationary currency.
Another property of Telos tokenomics that confuses investors is the “maximum token supply,” which is the maximum number of tokens that the chain can ever create. When the Telos mainnet was launched, this number was set to the same number that EOS used, 10 billion tokens, which was ten times the EOS token supply at launch. There was no intent ever to reach that number of tokens which, due to the lower token supply of TLOS versus EOS, is approximately thirty times the current TLOS supply. Today, this unnecessarily high number remains and can scare off some investors familiar with blockchains that may rapidly inflate their maximum supply and dilute user value. Altering this number from 10 billion to 1 billion will demonstrate to these investors our determination to remain fiscally sound while leaving some room for limited inflation if ever required.
Economic Impact
The overall intended economic impact of the TEDP3 is to unlock value currently locked up in unproductive areas of the Telos economy and put it to work as liquidity, incentives, grants and development funds to unleash rapid economic growth and attract greater participation from the broader crypto economy.
Telos Reserves
Funding for all of these initiatives comes from two accounts: the Exchange Reserve Fund and the Telos Recovery Fund. The Exchange Reserve Fund (‘exrsrv.tf’) was created in the Telos genesis block as a reserve for exchanges to recover airdrop funds for investors whose EOS genesis funds were held on exchanges at the time the genesis snapshot took place. Few exchanges or investment funds took advantage of this, and the first TEDP converted these to use in running the chain without creating inflation. The Exchange Reserve Fund holds approximately 24 million TLOS.
The Telos Genesis Account Recovery Fund (‘tlosrecovery’) was created by the first TEDP when Telos genesis accounts that had not performed even a single action in the first year since the Telos mainnet launch had their airdropped tokens and RAM reclaimed. It currently holds about 51.4 million TLOS. These funds total over 75.4 million TLOS.
The TEDP3 proposes to increase spending to address our challenges and growth impediments head-on. Funding for the Telos Foundation, staking rewards, block producer pay and Telos Works would all remain as they are today. The Economic Development fund would cease receiving new funds. The Telos Core Developers would receive an additional 100,000 TLOS per month, and the Telos Ignite Grants and Telos Fuel Incentive Funds would be created with disbursements of 500,000 TLOS and 1.7 million TLOS per month, respectively. This represents an overall increase in monthly distributions by 57% to 5.875 million TLOS per month. The block producers will also be directed to transfer 1 million TLOS from Telos Works Fund and approximately 3.84 million TLOS to the Telos Fuel Liquidity Incentives Fund to pre-fund two months worth of immediate operations.
Increasing funding in this manner will naturally cause the reserves to be extinguished earlier than the current situation. However, the expectation built into this economic plan is that increased spending to break through the roadblocks to TLOS price growth will reduce these disbursements as the TLOS price increases relative to USD. Additionally, increasing the use of the Telos EVM and other services can increase the micro-fees the network earns and replenish the reserves.
Proposed Amendments to TBNOA
Clause 49 — Telos Economic Development
Proposed Text
New text is indicated in bold text. Text for removal indicated in italics text.
49. Telos Economic Development
Any funds in the Exchange Token Reserve Fund account (named “exrsrv.tf”) that have not been claimed by exchanges by block 30,000,000 are subject to use for purposes of the economic development of Telos, at the discretion of 2/3+1 of the Block Producers, provided that the total amount of funds disbursed does not exceed 5,260,000 TLOS per month through block 98,000,000. Funds disbursed for economic development of Telos will be revised in four phases following block 98,000,000 as follows: for blocks 98,000,001 through block 113,000,000 (phase 1, approximately 87 days) the total amount of funds disbursed may not exceed 4,925,000 TLOS per month; for blocks 113,000,001 through block 128,000,000 (phase 2, approximately 87 days) the total amount of funds disbursed may not exceed 4,162,500 TLOS per month; from block 128,000,001 (phase 3) the total amount of funds disbursed may not exceed 4,100,000 TLOS per month; from block 270,000,001 (phase 4) the total amount of funds disbursed may not exceed 5,875,000 TLOS per month. While funds are used for such economic development purposes, no new TLOS tokens will be created as inflation for Block Producer pay or Worker Proposal Fund savings. Such funds may be distributed as follows: up to 1,000,000 TLOS per month through block 98,000,000, 400,000 TLOS per month for phase 1, 350,000 TLOS per month for phases 2 and 3, 35,000 TLOS per month for phase 4 to the Telos Worker Proposal Fund account named “eosio.saving”; up to 1,000,000 TLOS per month through block 113,000,000, 850,000 TLOS per month for phase 2 and 700,000 TLOS per month for phase 3 and 4, to the Telos Foundation account named “tf”; up to 500,000 TLOS per month through block 113,000,000, 250,000 TLOS per month for phase 2, 150,000 TLOS per month for phase 3, zero TLOS per month for phase 4 to the Economic Development Fund account named “econdevfunds” such funds to be disbursed for the further economic development of Telos as voted by 2/3+1 of the Block Producers; up to 1,750,000 TLOS per month through block 98,000,000, 1,575,000 TLOS per month for phase 1; 1,012,500 TLOS per month for phase 2; 900,000 TLOS per month for phase 3, 840,000 TLOS per month for phase 4, to the Block Producer pay fund account named “eosio.bpay”; and up to 1,000,000 TLOS through block 98,000,000, 1,350,000 TLOS per month for phase 1, 1,500,000 TLOS per month for phase 2; 1,700,000 TLOS per month for phase 3 and 4, to the Resource Exchange fund account named “eosio.rex” to provide an additional incentive to Members staking resources to that fund; up to 100,000 TLOS per month starting at block 98,000,001 through block 113,000,000 for phase 1, 200,000 TLOS per month for phase 2, 300,000 TLOS per month for phase 3, 400,000 TLOS per month for phase 4, to the Core Developer Fund account named “treasury.tcd” such funds to be disbursed for Telos Core feature development as voted by 2/3+1 of the Active BPs Block Producers; up to 500,000 TLOS per month for phase 4, to the Telos Ignite Grant Fund account named “<account.name>” to provide grants to attract new projects to deploy on Telos and support projects already deployed; up to 1,700,000 TLOS per month in phase 4, to the Telos Fuel Incentive Fund account named <account.name>” to provide incentives to Telos exchanges and DeFi protocols to increase liquidity staking on Telos. Such disbursement of any of these permitted funds may occur directly from the Exchange Token Reserve Fund or through intermediary accounts expressly designed for the purpose of programmatically disbursing such funds. Exchanges which held EOS tokens for their customers as of the EOS genesis snapshot time may continue to claim tokens from the Exchange Token Reserve Fund subject to the approval of a 2/3+1 vote of the Block Producers.
Current Text for Reference
49. Telos Economic Development
Any funds in the Exchange Token Reserve Fund account (named “exrsrv.tf”) that have not been claimed by exchanges by block 30,000,000 are subject to use for purposes of the economic development of Telos, at the discretion of 2/3+1 of the Block Producers, provided that the total amount of funds disbursed does not exceed 5,260,000 TLOS per month through block 98,000,000. Funds disbursed for economic development of Telos will be reduced in three phases following block 98,000,000 as follows: for blocks 98,000,001 through block 113,000,000 (phase 1, approximately 87 days) the total amount of funds disbursed may not exceed 4,925,000 TLOS per month; for blocks 113,000,001 through block 128,000,000 (phase 2, approximately 87 days) the total amount of funds disbursed may not exceed 4,162,500 TLOS per month; from block 128,000,001 (phase 3) the total amount of funds disbursed may not exceed 4,100,000 TLOS per month. While funds are used for such economic development purposes, no new TLOS tokens will be created as inflation for Block Producer pay or Worker Proposal Fund savings. Such funds may be distributed as follows: up to 1,000,000 TLOS per month through block 98,000,000, 400,000 TLOS per month for phase 1, 350,000 TLOS per month for phases 2 and 3, to the Telos Worker Proposal Fund account named “eosio.saving”; up to 1,000,000 TLOS per month through block 113,000,000, 850,000 TLOS per month for phase 2 and 700,000 TLOS per month for phase 3, to the Telos Foundation account named “tf”; up to 500,000 TLOS per month through block 113,000,000, 250,000 TLOS per month for phase 2, 150,000 TLOS per month for phase 3, to the Economic Development Fund account named “econdevfunds” such funds to be disbursed for the further economic development of Telos as voted by 2/3+1 of the Block Producers; up to 1,750,000 TLOS per month through block 98,000,000, 1,575,000 TLOS per month for phase 1; 1,012,500 TLOS per month for phase 2; 900,000 TLOS per month for phase 3 to the Block Producer pay fund account named “eosio.bpay”; and up to 1,000,000 TLOS through block 98,000,000, 1,350,000 TLOS per month for phase 1, 1,500,000 TLOS per month for phase 2; 1,700,000 TLOS per month for phase 3, to the Resource Exchange fund account named “eosio.rex” to provide an additional incentive to Members staking resources to that fund; up to 100,000 TLOS per month starting at block 98,000,001 through block 113,000,000 for phase 1, 200,000 TLOS per month for phase 2, 300,000 TLOS per month for phase 3, to the Core Developer Fund account named “treasury.tcd” such funds to be disbursed for Telos Core feature development as voted by 2/3+1 of the Active BPs. Such disbursement of any of these permitted funds may occur directly from the Exchange Token Reserve Fund or through intermediary accounts expressly designed for the purpose of programmatically disbursing such funds. Exchanges which held EOS tokens for their customers as of the EOS genesis snapshot time may continue to claim tokens from the Exchange Token Reserve Fund subject to the approval of a 2/3+1 vote of the Block Producers.
About Telos
The Telos EVM is the most powerful and scalable Ethereum Smart Contract platform built to power Web 3.0. Telos features a robust, third-generation, ESG-compliant evolutionary blockchain governance system, including smart contracts, advanced voting features, and flexible and user-friendly fee models. In addition, Telos supports the blockchain ecosystem by serving as an incubator and accelerator for decentralized applications through development grants. Come build with us.
