An Introduction to TELx Generalized Incentives

Background

Summary

Motivation

  • New assets in the Telcoin App: As we continue to rapidly scale the number of tradable assets on the Telcoin Application, we should also work to scale the TELx marketplace: empowering miners to benefit from Telcoin Application user volume while satisfying user demand for trading liquidity across a wide variety of new assets.
  • Limited quantity of incentives: While there are a potentially unlimited number of assets and markets that applications, users, and liquidity miners would like to use, there is a fixed, limited quantity of TEL incentives that can be harvested by liquidity providers. Therefore, when the full quantity of allocated issuance is flowing to TELx, the addition of each new incentivized market takes away from the flow of issuance that can be harvested by liquidity providers on the existing set of markets.
  • Allocation based on key design objectives of TELx: (1) liquidity across a (2) diverse network of markets sustained over (3) time.
  • Leveling the playing field: Whereas the existing arrangement is efficient to deploy and works well overall as a mechanism for incentivizing liquidity, the total quantity of TEL that can be harvested is based exclusively on an LP’s pro-rata share of total liquidity over time on an individual market, across all markets. Introducing new multipliers levels the playing field to some extent, requiring more effort and a wider variety of risks to be taken.
  • Compliant additions to TELx: By leveraging Telcoin’s compliance regime to determine new assets, we can compliantly regulate the addition of new assets to TELx in the interim while the Platform continues to decentralize toward full self-governance.

Goals and Non-Goals

Goals

Non-Goals

Overview

Issuance Allocation Formula

Summary

  • Issuance Quantity: 60M TEL
  • Issuance per Period: 20M TEL/month
  • Duration: 90 days
  • Time Slots: 3 30 day periods
  • Period 1: May 9th to June 8th, 2022
  • Period 2: June 8th to July 8th, 2022
  • Period 3: July 8th to August 7th, 2022
  • Calculation: Every 30 days
  • Calculation Mechanism: Off-chain script
  • Distribution: 30–45 days after the beginning of each period
  • Distribution Mechanism: Airdrop

Basis for Issuance Allocation: Multipliers

Summary

Overview

Example

Multipliers

The Diversity Multiplier

The Time Multiplier

Eligible Assets & Markets

Eligible Assets

Eligible Markets

Initial Markets

Mathematical Formula

Open-Source Code

Useful Links

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