On Wednesday the Telos blockchain introduced the launch of a brand new device designed to assist low-liquidity tasks fundraise: a NFT product referred to as a “T-Bond.”
In an interview with Cointelegraph, Douglas Horn — the creator of the Telos whitepaper and the CEO of GoodBlock, a improvement firm who assists with Telos core improvement — mentioned that token-based fundraising is a difficult drawback for each established and new tasks.
“Many crypto tasks face challenges just like our personal. Telos by no means raised any cash in a token sale, however many who have completed ICOs see their funds working low earlier than their tasks are market prepared,” he mentioned. “These tasks discover themselves with token reserves they cannot promote with out instantly tanking their costs as liquid tokens go available on the market.”
One potential resolution is Telos’ new product: the T-Bond. T-Bonds are bundles of fungible tokens which were locked into non-fungible tokens (NFTs) till a sure situation is met — as an illustration, the passage of a sure period of time or the launch of a mainnet.
Because of promoting T-Bonds, tasks can hypothetically raise funds with out tanking their token costs. Moreover, with the arrival of yield-bearing tokens, T-Bonds have the potential to develop into a device for buyers to hedge yield as properly:
“For tokens which have staking rewards, T-Bond NFTs may act equally to a T-Invoice as a hedge in opposition to altering charges,” mentioned Horn. “In order that creates an thrilling derivative-like DeFi primitive.”
Unsurprisingly, one of many first purposes of T-Bonds shall be serving to Telos construct liquidity for its personal TLOS token. TLOS has had a brutal yr whereas a lot of the remainder of the blockchain ecosystem flourished, dropping from $.05 per token to $.02.
Horn, nevertheless, says an absence of liquidity, not adoption, is the first barrier to cost appreciation.
“Buyers consistently come to us asking concerning the undertaking […] however they haven’t made the massive investments they want as a result of there’s not a lot liquidity, which means that their very own investments — even average investments within the tens of hundreds of {dollars} — would create a 5-10X of the market value proper there.”
As an answer, Telos has drawn up a method it calls TULIP (Telos Uniswap Liquidity Implementation Plan): Telos will increase funds by means of a T-Bond sale that can then be used to seed a liquidity pool on Uniswap, a plan that pulls inspiration from the profitable Uniswap launch of Katalyo, a tokenized actual property dApp on Telos.
As a brand new bull market dawns and tasks look to money in, Horn additionally believes T-Bonds would possibly properly assist a variety of different tasks with their funding woes as properly.
“The identical approach that T-Bond NFTs assist Telos degree up by fixing our liquidity and quantity issues we consider we might help others. I believe it may create a very robust marketplace for main sale fundraising adopted by secondary market hedging.”
