What is Telos? Telos is an alternative DPOS blockchain network based on the same EOSIO code that the EOS blockchain runs on. It could go live as early as October 17th when the next go/no go vote by the Telos BPs happens. The Telos team have been closely involved throughout the EOS mainnet launch process as voting and contribution members of the EOS Mainnet Launch Group (EMLG). With this hindsight, the team has identified what they call key problems with the way EOS has turned out so far and they are attempting to address these ‘key problems’ with a new blockchain ‘forked’ from the EOSio software. The Telos blockchain will work very similar to EOS with a focus on decentralization. They aim to make Telos ‘a sustainably decentralized EOSIO network’. I will discuss here some of the features of Telos. Here’s my previous article on how to create a Telos account: https://trybe.one/how-to-create-a-telos-account-before-launch/.
First, let us address these ‘key problems’ the Telos team has identified and is aiming to curtail. Everything is in their Whitepaper but I will touch on a little of it here. They list the solutions to the key problems in this way:
1. Economic decentralization – No whale addresses
2. Equitable pay structure for block producers and standbys
3. DApp developer-friendly with proprietary DApps and lower cost deployment
4. Additional token holder protection and pre-activation resolution of stolen tokens.
1. Economic decentralization in EOS is a problem for those of us that believe in decentralization. EOSio developer Block.one holds 10% of the EOS out there, which, conveniently, is the max any one account can hold according to the EOS Constitution. 90% of EOS tokens are controlled by just 1.6% of addresses. Although some of these account may be centralized exchanges holding EOS for their users, we must not just accept that is the case and certainly some of these accounts are not exchanges. Telos aims to alleviate this phenomenon by removing the extreme economic power of a small number of “whales” by capping the value of every address in the genesis snapshot at 40,000 Telos (TLOS) tokens. There is a proposal to the initial Constitution that may change this initial airdrop down to 20,000 TLOS per account, which would drive down the initial whale power even more. In addition, the Telos Foundation will never vote its tokens. There is no assurance from the developers of EOS, Block.One, that that will be the case for EOS.
2. Equitable pay structure for block producers and standbys. All BPs will be paid the same amount and all standbys will be paid 50% the BP rate.
3. DApp developer-friendly with proprietary DApps and lower cost deployment. Telos DApp developers may designate original code portions of their DApps to be proprietary or open source. (All Eos DApps must be open source which will limit participation by many potential developers.) To encourage developers and avoid price swings, the Telos network will launch with 4GB of RAM. While this sounds low, it will be more than enough to support any real DApps or airdrops on the system. The low number serves as an incentive not to speculate on Telos RAM because new RAM can be released, reducing elevated values of existing speculation. To maximize network utility and keep the Telos network a cost-effective place to deploy DApps, Telos will implement the following tactics meant to discourage rampant speculation:
• Limit initial RAM allocation
• Tie RAM increases to network utilization
• Encourage Telos Foundation to help stabilize price swings
4. Additional token holder protection and pre-activation resolution of stolen tokens. The Telos genesis token ownership caps all genesis accounts at 40,000 TLOS tokens. Telos Foundationowned addresses cannot vote. As a result, Telos token ownership is one of the most proportionate of any cryptocurrency network. Telos members have a much more equal say in the governance of the network than Eos members. Each EOS token represents 1/1,000,000,000 of the total value of the Eos network. Because Telos has fewer tokens, each TLOS token represents approximately 1/330,000,000* of the value of the Telos network. That is more than 3X the network ownership percentage for the same number of tokens. Eos inflation is set at 5% per year. Telos will aim for inflation of 2.5% per year. TLOS token inflation will be as much as 50% lower than that of EOS. The Telos Foundation and ABPs will provide a smart contract to allow any EOS holders who had tokens stolen to prove their ownership prior to Telos mainnet launch. This will return the tokens to their rightful owners and prevent additional members from unwittingly purchasing tokens that may later be frozen due to theft.
Telos does not aim to replace or compete with EOS.io because the better EOS does, the better Telos does. They aim to be a sister chain and just want to work alongside EOS and offer a more modern and decentralized version. It is possible that DApps that run on EOS can also run on Telos, so it is not out of the question that Telos will be competing with EOS for DApp market share. To me, Telos will be a sister chain that will compliment the EOS ecosystem. You decide and CRYPT ON!!
Donny Letson, Shadowcrypt