Telcoin Platform

Telcoin Platform

TAN: Interactions between Subsystems

Nested at the highest layer of the Platform as a user access-way, TAN depends on the subsidiary layers to create and operate their services. TAN routes trades through and depends on TELx for exchange and Telcoin Network for transfer, programmability, security, data storage and record-keeping functionality, driving volume and fees through the subsidiary levels that results in positive feedback loops at scale.

Summary

Nested at the highest layer of the Platform as a user-access and self-custody system, TAN depends on the subsidiary layers, TELx and Telcoin Network, for exchange and transfer, programmability, security, data storage and record-keeping respectively.

Adoption by users on TAN drives volume through the products generated by the subsidiary levels, increasing fee revenue to miners that may result in a positive feed-back loop between TAN volume and TELx, Telcoin Network production, participation and decentralization.

Impacts on TELx and Telcoin Network from Interactions on TAN

Variable, DefinitionDescription
TAN → TELx

What impacts do interactions on TAN have on TELx?		TAN -> TELx
• Volume: TAN mobile applications route user trades through TELx markets, paying fees each time they transact with a TELx liquidity pool. Liquidity miners earn fees on each trade. Increased exchange volume on TAN drives increased fees and yield for liquidity miners on TELx.

• Positive feedback loop: Increased yield drives increased liquidity, resulting in a positive relationship between application layer usage and TELx liquidity.
TAN → Telcoin Network

What impacts do interactions on TAN have on Telcoin Network?		TAN -> Telcoin Network
• Volume: Telcoin mobile applications are nested on Telcoin Network and route user transfers through the Telcoin Network blockchain. Users pay fees to access blocks, validators earn fees each time they secure a block, and a percentage of fees are burned and regenerated to the TEL Treasury.

• Positive feedback loop: Increased fee revenue from consumption at the application layer drives increased participation from miners at the lower levels and sustainability of TEL issuance in the TEL Treasury through Telcoin Network burn and regeneration.

Impacts on TAN from Interactions on TELx, Telcoin Network

Variable, DefinitionDescription
TELx → TAN

What impacts do interactions on TELx have on TAN?		TELx -> TAN
• Exchange: Application layer miners and users depend on TELx to produce a liquid, diverse network of markets to facilitate exchange demand.

• Positive feedback loop: Increased liquidity across diverse markets over time increases the total order size available at efficient prices for users, driving increased usage at the application layer of the platform, which in turn drives fee revenue for liquidity miners.
Telcoin Network → TAN

What impacts do interactions on Telcoin Network have on TAN?		Telcoin Network -> TAN
TAN is nested within the EVM and depends on Telcoin Network for:

• Security: Telcoin Network serves as an execution, settlement, and data availability layer for the whole platform. The decentralization and security of all layers, which depend on the blockchain to process transfers and secure the ledger, is a function of the decentralization and security of Telcoin network.

• Programmability: The ethereum virtual machine is nested on the network, enabling developers to create any number of programmable, automated digital goods and services and offer them to consumers.

• Sustained Yield: As the TEL Treasury regenerates based on Telcoin Network blockspace demand, all miners depend on Telcoin Network blockspace availability, production and demand in order to sustain issuance over time.