Understanding the Telcoin Platform
Vol 2(18)
Telcoin recently announced one of its major projects, the Telcoin Association. They referred to this as a “major release” which “sets the stage for community-led governance of Telcoin and comes alongside the launch of the Telcoin Network testnet”. Telcoin Association is a non-profit organization whose mission is to represent the interests of GSMA Mobile Network Operators (MNOs) and other stakeholders in maintaining and developing the Telcoin Platform.
Telcoin Association and the Telcoin Platform will allow every mobile user in the world to reach and directly benefit from Telcoin Services.
But how? How will an ordinary guy like Sam in Kigali, Rwanda benefit from the Telcoin Platform? Or, Haruki in Tokyo, Japan? These are some of the questions that have been asked since the announcement. It looks complicated. It is for this reason that I have written this article, to try and break things down, so that we can understand Telcoin better. But more important, so that we can understand the role we can play to support, and benefit from the services offered by Telcoin. I believe Telcoin will run a series of workshops and AMAs to explain the intricacies of Telcoin Association and the Telcoin Platform to the community. Until then, here’s my understanding of what has been announced.
So let’s start at the beginning.
As you (hopefully) know, Telcoin is a private company that “leverages blockchain technology to provide access to low-cost, high-quality decentralized financial products for every mobile phone user in the world.” The company was founded in 2017 and in 2018 became “the first telecom-focused cryptocurrency, distributed in partnership with GSMA network operators to mobile subscribers globally.”
Cool. We get that part.
Now where does the Telcoin Association come in? (PS: we’ll deal with Telcoin Network in another article).
Again, let’s start at the beginning.
One of the key “pillars” of crypto is decentralisation. This is what Satoshi sought to achieve with Bitcoin. In the spirit of decentralisation therefore, while Telcoin is a private company, they have committed to decentralising the services and their governance. But, unlike other companies, Telcoin’s decentralisation means users, such as Sam and Haruki become “owners” of these services. For example, “the Telcoin App is your mobile access point to the entire suite of user-owned Telcoin products, including a fast and affordable fiat remittance portal and a digital wallet on the Polygon Network.”
What products are they referring to? To answer this question let’s start by navigating the Telcoin Platform.
You may have seen the figure below on the Telcoin Association website. It details a number of features and stakeholders involved in the Telcoin Platform. It looks complicated, doesn’t it 😊. Well let’s break it down.
The diagram depicts the organizational and operational structure of the Telcoin Platform, detailing the interaction between various entities and the platform's functional elements. Let's look at each of the components systematically:
The Main Entities Involved
There are at least 6 entities involved in the Telcoin platform, namely, users, stakers, developers, liquidity miners, validators and governance system. There are instances where one entity can take on multiple roles. For example, a user can be a miner; and validators can be involved in the governance. Now, let’s look at each entity.
Users are the ordinary participants or holders of the TEL token who primarily transact on the network and pay associated fees for such transactions. Basically, users use the platform.
Stakers are individuals or entities that use the Telcoin app to lock in TEL and earn from referred user fees, collect TEL based on platform adoption, and where applicable, participate in governance.
DID YOU KNOW:
Telcoin users can Stake and Earn unto 42% of their referred users’ trading fees. Its simple, download the Telcoin App on your to get started.
Developers are tech-savvy participants (GSMA members) who develop mobile applications for the platform. They stake TEL and, in return, can earn TEL issuance and transaction fees.
Liquidity Miners are individuals or entities who provide liquidity to the network. By doing so, they can earn TEL issuance and fees.
Validators are GSMA Operator member Mobile Network Operators (MNOs) responsible for producing blocks and validating transactions on the Telcoin Network. They stake TEL, earn TEL issuance and gas fees.
Governance System are participants in the Telcoin Platform who have been appointed to the decision-making body of the platform that sets, enforces, and refines the rules for the entire ecosystem.
Not complicated, right? I hope at this point you can see where you fit in. Sam, an ordinary guy in Kigali will probably play a role as a user, staker, liquidity miner and even participate in the governance system. Haruki will probably just be a user, utilising the Telcoin platform to send money to his fiancé in the Philippines. A big mobile network company however, is likely to become a validator in the system. Ultimately, we all have a role to play – because Telcoin is for the people, by the people.
Here is a sweet spot: Telcoin has created an opportunity for MNOs and ordinary crypto enthusiasts like you and me to stake TEL, refer new users and earn fees. Think about that. You have the opportunity to partner with global MNOs in driving global crypto adoption, while earning incentives! Who else would give you that opportunity?
Now, let’s look at the key components of the platform.
The first key component is the Telcoin Application Network (TAN). This is the primary layer where most activities, like staking and transacting, take place. It's where users, stakers, and developers interact. The “TAN is the application layer – a network of mobile applications that are integrated with the Telcoin Platform and enable users to access its services”. Remember we said developers (who are members of the GSMA) develop mobile applications for the platform? Yes. Those mobile applications then form a network that is integrated with the Telcoin Platform, so that Sam and Haruki can access the user-owned services. For example, to send remittances through the Telcoin Platform from the US to Kigali, the user can upload money from the bank account in the US, send it through Telcoin to a mobile application developed by MTN or Airtel in Kigali. What has happened? MTN or Airtel apps are integrated with the Telcoin Platform so that the user can access Telcoin’s affordable (user-owned) remittance services! You see it?
Let me continue.
The second component is the TELx. This is a platform or exchange within the Telcoin ecosystem where various entities can exchange tokens and pay associated fees. It is a “network of liquidity pools on DeFi protocols that enable user-owned (yes, user-owned), automated, self-custodial exchange”. TELx allows the Telcoin Platform to have liquidity. Important to note here is that – this is a network of liquidity pools. Currently it is powered by QuickSwap, Balancer and DFX. This is important because, it highlights decentralization. Unlike centralized systems, the collapse (God forbid) of one of these does not necessarily mean the entire Telcoin Platform will collapse. This is important!
Next is the TEL Treasury which acts as the reserve or storage for TEL tokens. It issues TEL tokens and can regenerate them, presumably to maintain a certain supply or for rewards. “The Treasury distributes issuance at a rate of 10% of the TEL in the Treasury per year, with 1B TEL distributed in year one”. The distribution rules are set by the Platform and Treasury Councils (involved in Governance). (We’ll discuss Governance in detail another time).
We then have the Telcoin Network. Simply put, this is a public blockchain secured by GSMA Operator Mobile Network Operators using Proof of Stake consensus.
Considering all the above, the Telcoin Platform therefore represents the overarching system, emphasizing improvement provision and TEL allocation, ensuring the growth and sustainability of the platform. in summary, the Telcoin Platform has three parts: the Telcoin Network (blockchain foundation), TELx (DeFi exchange system), and the Telcoin Application Network (mobile app interface). Together, they offer a comprehensive blockchain service experience. I hope you get it now.
Now let’s look at the operational flow.
Operational Flow
There are several ways through which all entities interact within the Telcoin Platform. For example:
Staking and Rewards: Stakers and developers stake TEL and, in return, get issuance rewards and referral fees. Validators stake TEL to produce blocks and also receive issuance and gas fees.
Transaction Flow: Users transact and pay fees, some of which might go to stakers who referred the users to the Platform. The TELx platform facilitates exchanges and collects exchange fees.
Liquidity: Liquidity miners provide necessary liquidity for the TELx exchange operations, earning rewards in return.
Governance: this is a mechanism to ensure the platform runs transparently, and democratically, allowing for rule-setting, enforcement, and refinement.
Implications
There are several implications of the Telcoin Platform. Firstly, it has Decentralized nature where multiple entities interact with various components, suggesting a decentralized ecosystem where no single entity has complete control.
The utility token, TEL, has multiple uses - as a medium of exchange, a staking tool, and as a governance token. Its value is driven by a number of factors, including volume, demand and supply. NB: Given the magnitude of the Telcoin platform, TEL has quite a low supply. But this is for another day.
The TEL Treasury's ability to regenerate TEL, as well as provision for liquidity provision and staking suggests that mechanisms are in place to ensure the platform's sustainability.
In essence, the Telcoin Platform is a comprehensive ecosystem that integrates various entities, from ordinary users to developers, ensuring smooth operation and providing multiple avenues for participation and potential rewards.
I hope I’ve helped you better understand Telcoin Platform and Telcoin Association. I’ll certainly do another summary on another aspect of the Platform. If you’d like to read more about Telcoin, please visit the relevant sites below
Telcoin Association: www.telcoin.org
Telcoin homepage: https://www.telco.in
Telcoin on Twitter/X: https://twitter.com/telcoin
Telcoin on LinkedIn: https://www.linkedin.com/company/telcoin
Telcoin’s Facebook page: https://www.facebook.com/telcoin
Telcoin’s Instagram: https://www.instagram.com/telco.in/
Telcoin’s TikTok: https://www.tiktok.com/@telcoin
Telcoin’s Discord server: https://discord.gg/qzMUw57UJa
Disclaimer
The information and content (collectively 'information') provided herein are general information. The authors do not guarantee the suitability or potential value of any information or particular investment source. Any information herein is not intended, nor does it constitute financial, tax, legal, investment, or other advice. The authors have no affiliation with Telcoin or other persons or companies referred to in this article. The information in this article is based on the sources used. Some of the images used were sourced from the internet; relevant links are provided.