What is the issuance and circulation of Telos (TLOS) coins?

The initial TLOS token distribution model featured a public sale, strategic private sale, team allocation, and rewards for block validators, ensuring a balanced distribution for ecosystem growth and stability.

Dec 21, 2024 at 01:51 pm

Key Points:

• Understanding Telos (TLOS) and its Cryptocurrency Ecosystem
• Token Issuance and Distribution Model
• Circulation, Supply, and Burning Mechanisms
• Role of TLOS in the Telos Network and Governance

What is Telos (TLOS)?

Telos (TLOS) is a Proof-of-Stake (PoS) blockchain platform tailored for decentralized applications (dApps) and smart contracts. It boasts high performance, scalability, and governance features that cater to the needs of various blockchain projects. The native cryptocurrency of the Telos ecosystem is the Telos coin (TLOS).

Token Issuance and Distribution

• Initial Token Distribution: Upon the launch of the Telos mainnet, 100 billion TLOS coins were minted as the initial token supply.

• Distribution Model: The initial TLOS distribution followed a two-tier model:

  • Public Sale: 30% of the total supply (30 billion TLOS) was allocated for public sale, open to individual participants.
  • Strategic Private Sale: 20% (20 billion TLOS) was sold to strategic investors who supported the project's development and ecosystem growth.
  • Team and Foundation: 30% (30 billion TLOS) was allocated for the Telos team and the Telos Foundation for long-term development, research, and community support.
  • Validator Rewards: 20% (20 billion TLOS) was designated for rewarding block validators and contributing to the network's stability and security.

Circulation, Supply, and Burning

• Circulating Supply: The current circulating supply of TLOS is approximately 43 billion coins, which represents 5.5 billion coins less than the total initial supply. The initial supply was intentionally large to provide for future growth and token allocations.
• Token Burning: Telos employs a proof-of-burn consensus mechanism, where block validators burn a percentage of their rewards in TLOS tokens. This burning mechanism helps reduce the overall supply, increases scarcity, and contributes to the long-term stability of the token's value.

Role in the Telos Network and Governance

• Governance: TLOS holders have governance rights to participate in decision-making processes and propose or vote on changes to the Telos protocol and ecosystem.
• Staking: Staking TLOS tokens allows validators to participate in block production and earn rewards. Validators are responsible for validating transactions, securing the network, and maintaining its integrity.
• Transaction Fees: TLOS is the native currency used for paying transaction fees on the Telos blockchain. These fees are then used as rewards for validators who process and validate the transactions.

FAQs

1. What is the supply cap of TLOS?
Telos has a maximum supply of 150 billion coins. However, the circulating supply is capped at 100 billion coins because of the proof-of-burn mechanism.

2. How does token burning affect TLOS's value?
Token burning reduces the circulating supply, increasing scarcity and the likelihood of price appreciation.

3. Can TLOS be used for more than just staking and governance?
Yes, TLOS can also be used for making transactions on the Telos blockchain. Utility-driven use cases for TLOS include voting, creating dApps, and interacting with various ecosystem services.