Platform
Telcoin Network: Interactions Between Subsystems
As the base-layer blockchain system providing goods and securing property rights for users, Telcoin Network provides the higher sub-systems with mission critical infrastructure and general-purpose functionality for creating applications. TAN and TELx depend on Telcoin Network for execution, settlement, programmability, data storage, and sustained yield of TEL. Increased volume at the higher levels drives yield for Validators, incentivizing participation, which enhances network security through decentralization.
Adoption on TAN and TELx increases both the aggregate supply and demand of goods and services available for consumption on Telcoin Network. Increased demand for blockspace drives growth in gas fees, incentivizing network decentralization and sustaining yield for the whole platform through TEL destruction and regeneration.
Interactions on Telcoin Network: Impacts on TAN and TELx
| Variable, Definition | Description |
|---|---|
| Telcoin Network → TAN, TELx What impacts do interactions on Telcoin Network have on TAN, TELx? | Telcoin Network → TAN, TELx • Security: Telcoin Network serves as an execution, settlement, and data availability layer for the whole platform. The decentralization and security of all layers is a function of the decentralization and security of Telcoin network. • Programmability: The Ethereum Virtual Machine (EVM) is nested on the network, enabling the creation of programmable, automated digital goods and services (e.g. DeFi liquidity pools on TELx, staking contracts) • Sustained Yield: As the TEL Treasury regenerates based on Telcoin Network blockspace demand, all miners depend on Telcoin Network blockspace availability, production and demand in order to sustain issuance over time. |
Interactions on TAN, TELx: Impacts on TELx
| Variable, Definition | Description |
|---|---|
| TAN → Telcoin Network What impacts do interactions on TAN have on Telcoin Network? | TAN → Telcoin Network • Volume: Telcoin mobile applications are nested on Telcoin Network and route user transfers through the Telcoin Network blockchain. Users pay fees to access blocks, validators earn fees each time they secure a block, and a percentage of fees are burned and regenerated to the TEL Treasury. • Positive feedback loop: Increased fee revenue from consumption at the application layer drives increased participation from miners at the lower levels and sustainability of TEL issuance in the TEL Treasury through Telcoin Network burn and regeneration. |
| TELx → Telcoin Network | TELx → Telcoin Network • Volume and Aggregate Supply: TELx liquidity increases the aggregate supply of goods and services available to be consumed using Telcoin Network blockspace, driving demand for Telcoin Network blockspace and gas fees. • Positive feedback loop: Increased liquidity drives increased demand for blockspace. Increased demand for exchange drives increased fees from blockspace consumption to Validators. Increased fees on Telcoin network incentivizes participation from new Validators, increasing decentralization, and as a percentage of gas fees are sent to the burn contract, sustainability of TEL issuance in the TEL Treasury through Telcoin Network destruction and regeneration. |