The Telos Blockchain Network's eight-month-old development fund has already distributed the equivalent of more than $400,000 USD through its perpetual funding mechanism.
LONDON, Sept. 23, 2019 /PRNewswire/ -- Telos, a high speed, high capacity, blockchain network, has deposited over 4.8 million TLOS, its core system token, to its network development fund. To date, the fund has sponsored over 20 projects, with over 35 individuals earning TLOS.
The system is unique in the space. Among the few networks with built-in funding mechanisms, the Telos fund is the only one controlled by smart contract that gives every TLOS holder transparent, on-chain voting rights.
Telos core developer and infrastructure partner, Douglas Horn, says, "Telos has the only development fund that is distributed by stakeholder voting on submitted proposals. It is entirely smart contract-controlled. Telos leverages the power of its unique voting system, Trail, to keep all functions on the chain, transparent, and immutable."
Stakeholders wanting to add value to the network can submit a proposal to the system using a Telos wallet that supports voting, such as Sqrl wallet. Submitted proposals are stored on the network's decentralized storage platform and accessible to Telos voters anywhere in the world. Stakeholders can scrutinize details, discuss proposals, and ultimately vote using the advanced blockchain voting tools Telos provides at the platform level. If a proposal passes, payment is executed automatically by smart contract.
"We want to build the network and we want to build it quickly," says core developer Marlon Williams, creator of Sqrl wallet. "We believe that developers will make Telos successful, and that they should be paid for their efforts. I am confident that this experiment will add value to the network. Imagine this secure funding power being exercised by businesses, non-profits, and developing nations."
The program was established at launch in December 2018 and was to be funded by inflation at the rate of 1.5%. In July 2019, token holders approved a landmark governance referendum changing the funding mechanism and pausing inflation on the network. Voters elected to re-purpose tokens created at launch and reserved for exchanges, which remained unclaimed by exchanges unwilling to meet the stringent requirements established to discourage collusion and network manipulation. This referendum also significantly increased the funds available for distribution through the network development fund. While the change is temporary, it is expected to last up to several years. Current supply of TLOS is 355,208,371 where it has remained since inflation ended.
"After we listed on a few exchanges, the community decided the rest of the funds would be put to better use funding network development. The founders and early adopters are serious about making Telos a network with longevity and deep roots," says Williams, "and one of the ways we are doing that is by building in a free market mechanism that will continue to fund development in perpetuity, while also powering the economy of the future."
A developer works at his desk.
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