Platform
Blocks: Interactions Among Products
Blocks provide the necessary infrastructure for users to securely interact with blockchain-based services on Telcoin Network, including liquidity pools and mobile products. Validators secure blocks to the blockchain and earn TEL rewards. A portion of gas fees are burned each block and regenerated in equal quantity to the TEL Treasury.
The Relationship between Blocks and other resources
The following section identifies relationships between liquidity pools and other products generated by the Telcoin Platform.
- Consumption: Users must have their transactions included in a block and secured to the chain to interact with any number of blockchain based services at the application layer.
- Production, Harvesting: Developers and Stakers rely on 100% network uptime, blockspace, and low fees to produce mobile services and new users, volume respectively in order to earn fees and TEL issuance.
- Consumption: Users pay gas fees in TEL to transfer their assets or to have their transaction included in a block and secured to the blockchain by validators.
- Production, Harvesting: Validators stake TEL in PoS consensus to secure the network, and harvest TEL generated each block and gas fees in TEL from consumers who pay to have their transaction included in a block.
- Regeneration: A portion of gas fees, or the base fee, contained in each block on Telcoin Network are regenerated in equal quantity to the TEL Treasury.
- Description: Liquidity pools are smart contract-based token reserves nested on top of blockchain networks, and each liquidity provision and exchange transaction requires users to consume blockspace and pay gas fees. The Telcoin Network blockchain processes TELx transactions into blocks and the EVM enables the creation of the on-chain programs or “smart contracts” that compose the logic underlying TELx protocols.
- Positive feedback loop: Increased liquidity drives increased exchange volume. Increased exchange volume drives increased gas fees. Increased gas fees incentive new validators to enter the market. New validators means increased decentralization and security.
- Negative feedback loop: As activity increases on Telcoin Network, the network may congest, resulting in inefficiencies in market pricing due to unavailability to transact cost effectively.
- Description: Users pay gas fees to access Telcoin Network blockspace, i.e. to have their transfer included in a block and secured to the immutable ledger by Validators. Additionally, a portion of gas fees each block, the base fee, are destroyed and are regenerated by Telcoin Network in equal quantity to the TEL Treasury.