Telos Token Distribution — Use of the EOS Genesis Snapshot & Why

The Telos network will launch and disperse tokens based on the same snapshot used by the EOS Mainnet, the Genesis Snapshot. Telos will match this distribution with a 1:1 ratio up to a maximum of 40,000 tokens issued per account. (see more on this cap here: http://bit.ly/WhyTokenCap)

By selecting the EOS Genesis Snapshot as a basis for initial token distribution, Telos:

· Produces a stronger and more decentralized EOSiO platform launch.

· Uses an already existing, proven, verified and fully tested snapshot that is publicly transparent and available.

· Creates stronger owner equity in the Telos ecosystem via a limited total token supply.

· An increased likelihood and ease for exchanges to list and incorporate Telos tokens (TLOS) into their environment and distribute them to their customers who held EOS at the time of snapshot.

Telos: a better decentralized EOSiO Network

One of the cornerstone purposes of Telos is to bring stronger decentralization into the EOSiO Blockchain ecosystem. Telos accomplishes this by limiting or giving a “haircut” to the larger token holding accounts in the Genesis Snapshot.

The EOS Mainnet has received some criticism for being too centralized as a Blockchain. The basis for this argument is that 21 independent block producers does not offer enough decentralization. In reality this viewpoint is misguided as EOS has proven this method of distributed production of the blocks is actually more decentralized than both Ethereum and Bitcoin as most of the mining on these networks is heavily centralized by a handful of large mining pools.

However, because control over those producers in the EOS environment lies in the hands of the token holders by way of their vote, EOS has a large risk of centralized control because at EOS launch, 90% of tokens are held by just 1.6% of token holders. This same highly centralized voting pool will control the selection of EOS worker proposals, which account for a very significant 4% annual inflation (currently worth around $320 million per year). Telos, by capping these accounts to a maximum of 40,000 tokens at network launch, changes the landscape and distribution of token ownership dramatically bringing a better balance to the voting pool from the onset of the network (see whitepaper page, 15 & 16 at www.telosfoundation.io).

Genesis Snapshot: Valid, Verified, Secure, and Free from Manipulation

The Genesis Snapshot (of all EOS ERC20 Ethereum tokens prior to the launch of EOS Mainnet) was taken on June 1st, 2018. This snapshot is publicly available and has been rigorously tested, reviewed, and validated by multiple sources. This snapshot is considered the de-fact standard.

Because Telos limits accounts at the time of launch to having no more than 40,000 tokens, using the Genesis Snapshot avoids the ability for any individual or organization to “game” the system by setting up multiple unique wallets within the EOS network with 40k tokens or less each, thus securing more tokens (and voting power) for themselves. Therefore, the Genesis Snapshot is the only snapshot available that prevents manipulation from taking place ahead of the Telos launch.

Stronger Token Holder Owner Equity

By capping token distribution to a maximum of 40,000 per account, TLOS token supply will be dramatically reduced compared to EOS. Depending upon exchange participation, it is estimated that token supply will be approximately 1/3rd that of the EOS Mainnet or roughly 330 million tokens.

Increased likelihood and ease of integration for exchanges to list and offer TLOS tokens

The date of the EOS Genesis Snapshot was well publicized and it is very reasonable to assume that all exchanges that listed EOS at the time will maintain records of EOS holdings as of the snapshot to be able to distribute future airdrops to their customers. Using the official EOS Genesis Snapshot, therefore, increases the likelihood of fair distribution of TLOS tokens to EOS holders and of exchanges listing TLOS — two important priorities for the success of the Telos network.

In Summary, the Telos network launch has chosen the Genesis Snapshot so as to give Telos token holders better voting representation in the network while ensuring that the distribution is fair and void of any market manipulation, adding stronger equity to the individual token in the Telos ecosystem and maximizing the likelihood that exchanges will distribute TLOS tokens to their customers who historically held EOS tokens.

Author:

Jon McGuffin — Discover Telos

Contributing authors:

Mark Cohen — EOS Vancouver

CJ Anders — Telos

Douglas Horn — GoodBlock.io

Marlon Williams — EOS Miami

Ava Masucci — GoodBlock.io