TIP: 0016
Title: Fund a “give away” contest of 10 million TLOS
Authors: Amplified Telos (Ian Panchèvre / [email protected])
Status: Declined
Type: Protocol
Created: 2018–10–08
TIP 16 proposes the creation of a “giveaway” contest of 10 million TLOS, which will be randomly distributed to contest participants for free.
Telos should use its capital to introduce itself to the broader blockchain/cryptocurrency ecosystem, show off its technology to a large audience, and attract new community members.
Although Telos will NOT sell tokens prior to network launch (i.e., ICO), Telos can give away tokens for free. If properly structured, a “giveaway” contest could attract hundreds of thousands of new community members. Moreover, the giveaway rewards could be relatively egalitarian, such that the contest avoids the creation of many losers and prevents the formation of small whales among the winners.
To provide further detail:
Upon network activation, 10 million TLOS will be initialized in a “giveaway jackpot” smart contract. The giveaway jackpot contract will serve as a reserve that holds the 10 million tokens indefinitely. Once the active Telos block producers are satisfied with all web infrastructure necessary to administer a successful decentralized contest, they will vote to move the funds from the jackpot contract to the contest contract, thereby launching the contest.
5 million TLOS will be given immediately to individuals when they register for the contest (see schedule below). Accordingly, the giveaway will reward people for registering quickly.
5 million TLOS will be given randomly, in various increments, to the contest winners at the conclusion of the contest (see schedule below). Accordingly, the giveaway will promise big payouts for select winners, resembling a lottery of sorts.
The giveaway is NOT an ICO nor a lottery. Participants won’t be asked to send any form of payment (cryptocurrency or otherwise) in order to participate.
The giveaway is NOT an airdrop. Participants don’t need to already own cryptocurrency in a registered address in order to participate. Any person may participate in the giveaway by visiting a website and registering before a clearly marked deadline. The registration process will involve submitting basic information (full name and email), verifying one’s identity (through a third-party digital identity provider, such as Civic), and provisioning/linking a Telos wallet.
Identities will be independently verified to ensure that each person participates once. We want to prevent people from entering the contest multiple times for themselves. Additionally, by collecting emails from registered users, the Telos Foundation will be able to send marketing and informational activity to all participants (so long as they don’t opt-out of receiving these emails).
Community members may submit worker proposals for building an informational website, a giveaway contest contract, and a web application for user interaction (e.g., an informative landing page, the onchain contract to administer the contest, a portal for registering for the contest, a notification system for winners, integration with a TLOS wallet, etc.).
Once contest infrastructure is complete, block producers will review and debug the submitted work product. The block producers will note their satisfaction with the submitted items when at least 2/3s + 1 of the active BPs vote in favor of releasing the funds from the “giveaway jackpot” contract to the “giveaway contest” contract that will then execute the contest.
Once the 77,000th person registers for the giveaway, the contest contract will begin a 1-week countdown. During this 1-week window, new participants may register (although they will not earn TLOS tokens upon registration). The contest will stop accepting further participants the moment the countdown expires. Concurrently, the contest contract will administer onchain computations and allocate TLOS to the addresses of all the contest winners. The giveaway web application will also notify participants of their outcome.
OR (replacing the previous paragraph): The contest will cap the number of registered participants to 100,000. Once the 100,000th participant registers, the contest will stop accepting further participants and will set a countdown for one hour. Once the one hour elapses, the contest contract will administer onchain computations and allocate TLOS to the addresses of all the contest winners. The giveaway web application will also notify participants of their outcome.
If a team never submits acceptable contest infrastructure, then the funds in the giveaway jackpot will remain locked. Block producers could vote at any time to burn the tokens, thereby removing them from circulation and terminating the contest before it begins.
If the funds are somehow “hacked” out of the jackpot or the contest contracts, block producers can immediately move to freeze and return the funds, thereby censoring the thieves.
To incentivize participants to quickly register, the giveaway contest will distribute 5 million TLOS tokens to the first 77,000 registered participants according to the following schedule:
| Order of Registered Participants | Total Participants | TLOS Reward | Total |
|---|---|---|---|
| 1 - 2,000 | 2,000 | 500 | 1,000,000 |
| 2,001 - 7,000 | 5,000 | 200 | 1,000,000 |
| 7,001 - 17,000 | 10,000 | 100 | 1,000,000 |
| 17,001 - 37,000 | 20,000 | 50 | 1,000,000 |
| 37,001 - 77,000 | 40,000 | 25 | 1,000,000 |
| TOTAL | 77,000 | - | 5,000,000 |
When the giveaway contest contract pays out 5 million tokens to random winners, it may do so according to this schedule:
| Number of Winners | Reward | Total |
|---|---|---|
| 20,000 | 50 | 1,000,000 |
| 10,000 | 100 | 1,000,000 |
| 1,000 | 1,000 | 1,000,000 |
| 100 | 10,000 | 1,000,000 |
| 40 | 25,000 | 1,000,000 |
| 31,140 | - | 77,000 |
Note that the vast majority of all participants will likely earn TLOS during registration. Nearly 1/3 of all participants will earn additional tokens during the lottery.
TIP 16 requests that new language be added to paragraph 22 of the Telos Blockchain Network Operating Agreement (TBNOA):
“Additionally, 10,000,000 million TLOS will fund a ‘giveaway jackpot’ for a contest to be administered at a later date as determined by the active block producers.”
(Discussion period is closed.) Voted by Telos Contributors Group 2018-10-23. Voting: Yes - 0, No - 30, Abstain - 0
This document is in the public domain.