$TLOS, the native currency of the Telos Network, plays a pivotal role in various aspects of the ecosystem. Its significance spans network governance, gas fees, resource allocation, staking, and participation in on-chain decision-making.
- Governance: $TLOS is the primary token for network governance. It empowers token holders to influence decisions and vote on critical network upgrades, making it a key instrument for community involvement.
- Gas Fees (for Telos EVM): $TLOS is the fuel that powers the Telos Network. To interact with smart contracts, send tokens, and execute transactions, users need to hold $TLOS tokens in their wallets. This ensures that the network remains secure and that participants have a stake in its operations.
- Resource Allocation (for Telos Zero): On Telos Zero, $TLOS is used to buy network resources so that users may transact, compute, and store data on the Telos chain. To learn more please see here
- Staking: By staking $TLOS, you can earn returns that are automatically compounded every 30 minutes. The rewards come from a community reserve and are distributed to those who stake their $TLOS.
Fair Distribution at Launch
In 2018, when the $TLOS token was introduced, the network's genesis snapshot was taken from the EOS network. At that time, accounts were limited to a maximum distribution of 40,000 $TLOS tokens per wallet. This strategic decision aimed to prevent the centralization of ownership among 'whale investors' and ensure a more equitable distribution of the token. This also means that there are no heavily vested VCs or team funds whose tokens will unlock at specific intervals. Further, only ~5.2% of the total token supply was provided to the ~150 contributors who helped build and launch the network. This wide token distribution ensures that the Telos blockchain stays a conflict-free community-led effort. More information about the fair distribution model can be found in the original Telos Whitepaper. The current top $TLOS token holders can be found on Telos Tracker.