Updates to The Telos Economic Development Plan

After engaging in a healthy discussion with the Telos community regarding the Telos Economic Development Plan, the proposal has since been revised to reflect the input and address the concerns of the Telos community. What follows is a breakdown of the proposed revisions:

The primary variance from the original proposal is a reduction in the total maximum monthly amount of funds drawn from the Exchange Token Reserve Fund (ETRF) from 7.1 million to 5.26 million TLOS. This is accomplished by reducing the maximum amount of TLOS paid to block producers to the equivalent of 6% annual inflation.

These changes are accomplished through the addition of one new clause and amendments to four existing clauses. What follows is a summary of each clause, and the text of the revised clause itself.

Clause 10: “Block Producer Pay” (summary):
- revises the operation of block producer pay for as long as funds exist in the ETRF. Sets the BP pay rate to the equivalent of 6% annual inflation.

10: Block Producer Pay (text):
Block Producer and Standby Block Producers shall be paid each day from a daily fund consisting of the daily share of 1% annual inflation (the “BP Inflation Rate”) of the entire value of the Telos blockchain as measured in TLOS tokens. Every day, this total amount shall be allocated such that each Block Producer receives the same pay for the time spent as a Block Producer as every other Block Producer and each Standby receives pay that is half of the rate of each Block Producer for its time spent as a Standby, with the provision that Block Producers and Standby Block Producers may have their daily pay allotment deducted in proportion with the percentage of blocks they were expected to produce in their most recent production period of 180,000 blocks (approximately 24 hours) or fewer, but failed to produce. Loss of pay from failing to regularly execute the “claimrewards” action, shall be borne by the Block Producer or Standby Block Producer, not the network. For as long as funds exist in the Exchange Token Reserve Fund account named “exrsrv.tf”, the aggregate amount of pay for all Block Producers and Standby Block Producers shall be drawn from that fund preferentially to creating new TLOS tokens to pay into the Block Producer pay account named “eosio.bpay” at a rate equivalent to 6% annual inflation. This rate may be adjusted by a 2/3+1 vote of the Block Producers provided it does not exceed the limits set in Clause 49 “Telos Economic Development”.


Clause 23: “Requirement to Opt-in as a Member” (summary):
- adds nullification of unclaimed accounts as an option and specifies that all tokens associated with any deleted or nullified accounts will be added to the ETRF.

23: Requirement to Opt-in as a Member (text):
The Telos Initial Distribution will include all accounts from the EOS Snapshot. However, it is unknown which EOS Snapshot account owners may wish to opt in and become Members of the Telos network. Because all token holders must agree to become Members by accepting the mutual representations of this Agreement, accounts that have no transactions 63,000,000 blocks (approximately 365 days) after the activation of the Telos network are subject to deletion or nullification by the Block Producers at that time or in the future, provided no transactions have yet been made. Tokens in any deleted or nullified accounts will be removed from those accounts and deposited in the Exchange Token Reserve Fund account named “exrsrv.tf”.


Clause 24: “Worker Proposal Fund” (summary):
- specifies that as long as funds exist in the ETRF, that the Worker Proposal Funds will receive its funding from this account instead of inflation at the rate the BPs determine up to the initial amount of 1 million TLOS per month.

24: Worker Proposal Fund (text):
A value equal to the daily share of 1.5% annual inflation of the entire value of the Telos blockchain as measured in TLOS tokens shall be deposited to an account on the Telos Network with the account name of “eosio.saving” (the “Worker Proposal Fund”) each day. For as long as funds exist in the Exchange Token Reserve Fund (exrsrv.tf), funds for the Worker Proposal Fund shall be drawn from the Exchange Token Reserve Fund preferentially to creating new TLOS tokens at a rate of 1,000,000 TLOS per month. This rate may be adjusted by a 2/3+1 vote of the Block Producers provided it does not exceed the limits set in Clause 49 “Telos Economic Development”.


Clause 44: “Resource Exchange” (summary):
- specifies that as long as funds exist in the ETRF, that REX rewards will receive funding from this account at the rate the BPs determine up to the initial amount of 1 million TLOS per month.

44: Resource Exchange (text):
Upon a 2/3+1 majority vote by the then current Block Producers to do so, computer code and/or contracts enabling a “Resource Exchange” for staking an account’s system resources to a common exchange which leases or rents out said resources to others for a fee (even a zero value fee) and disburses said fees to all resource-staking Members in return for an equal percentage of network income from RAM transaction fees, name bidding fees, or any other fee for commonly owned or managed Telos resources shall be implemented in the Telos Blockchain Network computer code and/or contracts. The form of this Resource Exchange may be modified or removed in the future upon a 2/3+1 majority vote by the then current Block Producers. For as long as funds exist in the Exchange Token Reserve Fund named “exrsrv.tf”, funds from that account may be deposited into the Resource Exchange account named “eosio.rex” for disbursement at a rate of 1,000,000 TLOS per month. This rate may be adjusted by a 2/3+1 vote of the Block Producers provided it does not exceed the limits set in Clause 49 “Telos Economic Development”.


Clause 49: “Telos Economic Development” (summary):
-
establishes changes to the use of the Exchange Token Reserve Fund (ETRF) for use in the TEDP, enumerates where funds are to be disbursed, sets limits on each disbursement and allows the block producers to determine any adjustments, provided they do not exceed those limits.

49: Telos Economic Development (text):
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. 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 to the Telos Worker Proposal Fund account named “eosio.saving”; up to 1,000,000 TLOS per month to the Telos Foundation account named “tf; up to 500,000 TLOS per month 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 1,760,000 TLOS per month to the Block Producer pay fund account named “eosio.bpay”; and up to 1,000,000 TLOS to the Resource Exchange fund account named “eosio.rex” to provide an additional incentive to Members staking resources to that fund. 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.

These proposed revisions will be submitted to the community to be voted on once an updated version of Sqrl (the official Telos wallet) with ratify/amend functionality is released. The ballot period will be 29 days.