Telos stakeholders approve Telos Economic Development Plan 2.0, supporting core developers and the network’s increased adoption
Telos (www.telos.net), one of the most active blockchain platforms in the world according to Blocktivity and CryptoDiffer, today announced it has increased its staking rewards and funding for development. Stakeholders voted to approve these measures as part of the Telos Economic Development Plan 2.0, supporting core developers and the network’s increased adoption.
Telos has added more than 100,000 new accounts in the past month alone, as new decentralized applications (DApps) adopt the Telos blockchain for its high capacity, advanced technical features, and next-generation governance. Projects including COVID-19 testing app Epios, hackathon platform TAIKAI, social good startup All_EBT, creative platform Newlife, and interoperability platform Transledger have all integrated the Telos blockchain in recent months.
Following the Telos Economic Development Plan’s approval, staking rewards increased from 13 percent to 19 percent APR. The newly established fund supports breakthrough features including Telos Decide and Telos EVM, a 300x faster way to create and deploy Ethereum-compatible smart contracts with zero transaction fees. Telos supports 10,000 transactions per second (TPS), compared to Ethereum’s 14 TPS. For non-core developers, Telos will create feature bounties that allow others to tap into this funding.
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All Telos community members were able to vote on the new plan using Telos’ on-chain, smart contract-based governance engine, Telos Decide. Voting was conducted on several interfaces over a 29-day voting period, and Telos Economic Development Plan 2.0 was passed on July 8, 2020. The approved changes were then coded, tested, and enacted by Telos block producers on July 11, 2020.
“Telos stakeholders voted on this measure to provide ongoing funding to grow the chain and promote open-source and blockchain-based projects globally,” said Douglas Horn, Chief Architect of the Telos Blockchain. “We expect increased staking rewards to draw more interest to Telos, which is already an industry leader in technical specifications and feature development.”
Telos Economic Development Plan 2.0 sets a schedule of three phases triggered by block height and TLOS price to reduce the amount of TLOS tokens removed from the Telos Exchange Reserve for staking rewards, block producer pay, proposals, and foundation operating funds. These will be reduced at each three-month milestone, except for staking rewards, which will increase. As a result, those staking TLOS to the Resource Exchange will receive a greater reward while other forms of increased circulation are lowered.
The first Telos Economic Development Plan was enacted in 2019, and intended to have periodic adjustments. It served to boost development on the Telos network, helping to bring 100+ projects to the ecosystem and giving Telos one of the fastest-growing user bases in the blockchain industry. This along with market conditions led to downward pressure on the price of TLOS, which the latest Economic Development Plan resolves while supporting continued growth.
The Telos system token supply (TLOS) has had no inflation since the Telos Economic Development Plan was enacted. Funding is drawn from an exchange reserve created at the launch of the Telos mainnet, which brings new TLOS into circulation. The TLOS supply is expected to remain fixed for several years until the reserve is exhausted. By reducing the amount drawn from the reserve, the latest Economic Development Plan further extends the time before TLOS returns to 2 percent annual inflation.
