TELxIP: Creation of a TELx Council Operational Wallet

TELxIP: Creation of a TELx Council Operational Wallet

Abstract

As of today, the TELx Council has come up with several ideas to enhance the TELx ecosystem.

These ideas include, for example:

• Expand TEL token availability to other EVM chains
• Make telx.network a one-stop shop for the participants by centralizing all the actions needed for providing liquidity (swapping for a second asset, providing liquidity and staking the LPTokens)
• Display analytics of the different TELx liquidity pools so users can knowingly decide in which pool to invest. All of these examples are expected to rise users’ interest and increase the overall TELx liquidity, making TEL swaps more profitable for DeFi participants, including users of the Telcoin App.

These propositions, whether related to User Interface or Smart Contract implementation, require hours of work external to the TELx Council and as a result have costs associated.

The TELx Council has been granted 200M TEL for Year 2 of operations, and this amount is for the moment solely distributed as incentives for the 6 liquidity pools constituant of the TELx ecosystem.

As per TGIP1, as known as the “Telcoin Association Constitution”, duties of the TELx council go beyond distributing incentives:

“The TELx Council is required to:

*(1) provision (plan, finance) and coordinate implementation of improvements to the TELx system

(2) regulate the flow of TEL issuance throughout TELx to be harvested by liquidity miners

(3) introduce, alter, and enforce TELx operational rules including harvesting, information and communication, maintenance and construction

(4) inform Miners of the activities and outcomes related to TELx.”*

The present TELxIP aims to reallocate some of the funds used as incentives to a TELx Treasury wallet, so that the TELx Council can implement improvements to the TELx ecosystem without having to ask the Treasury Council for an extension of funds.

Specification

This proposal, if accepted, will set aside, starting from Year 3, 10% of the yearly TELx allocation to fund a TELx Council Operational Wallet.

This allocation will be used transparently to fund the implementation of future TELxIPs, after an extensive breakdown of the costs associated with each required task.

By the end of each year, remaining funds will be assessed and the TELx council will decide if they should be reallocated to the TELx incentives for next year.

Implementation

Upon approval of this proposal, the TELx Council will ask the TAO to setup a 3 out of 6 multisig wallet labelled “TELx Council Operational Wallet”

It will immediately be credited by the 10M TEL mentioned in the TELIP: Year 2 TEL allocation Proposal, which will be used by the TELx Council to fund whatever work is needed to implement the different TELxIP proposals.

The different TELxIP proposals shall, with the help of the TAO, assess the budget needed for their implementation.

Said budget would be validated by the TELx Council upon their approval.

Starting from Year 3, 10% of the TELx Council allocation shall be directed to the TELx Council Operational Wallet for future funding.

At the end of each year, the TELx Council shall :

Decide if remaining funds (if any) should be kept for near future implementations or redirected to TELx Liquidity Providers as incentives. Adjust the following year’s allocation relatively to TEL’s price fluctuations and overall need of development funds. Conclusion

Without a specific wallet dedicated to covering the cost of TELxIP proposals, the TELx Council will be limited to choosing the distribution of TELx incentives for Liquidity Providing, which is only a fraction of its prerogatives, or ask the Treasury Council for an extra allotment of funds.

Creating a specific wallet would speed up the implementation process and give the TELx Council full authority on what should be implemented for the TELx ecosystem.