Telos REX FAQs
T-REX is finally here! Learn everything you need to know to start renting out your resources.
What is Telos?
Telos is a third-generation blockchain that runs smart contracts at very high speeds (2 blocks per second) with high capacity. Telos charges no transaction fees. Telos is based on the EOSIO software and features advanced voting for dapps, decentralized storage, and a scarce resource model.
What is TLOS?
TLOS is the system coin for the Telos blockchain and is used to reserve network resources like CPU, NET, and bandwidth. It is also used as a currency. Because TLOS was never sold in an ICO or tokensale, but was instead launched grassroots like bitcoin, many consider it to be on better regulatory footing than cryptocurrencies that ran an ICO.
Is this related to Teloscoin (TELOS)?
Unfortunately, some coins and tokens have similar names. There is a cryptocurrency project called Transcendence that later adopted the name “Teloscoin” with the symbol TELOS. This coin is not related to Telos in any way. The symbol for Telos tokens is TLOS.
What is staking?
Instead of gas fees, Telos users stake TLOS tokens to reserve network resources (CPU time and NET bandwidth). Staking does not consume these resources, but locks them to prevent spending until they are unstaked again. After unstaking, TLOS become liquid and spendable again after 3 days. Staking tokens also makes them eligible to vote for Telos block producers and unlocks other governance functions.
What is REX?
REX stands for Resource Exchange. Many people who stake their TLOS tokens do not fully use the resources that they have reserved. Other people may need network resources but not be able to buy the full amount of TLOS they would need to get them. When TLOS holders stake their tokens into REX, their resources go into a pool that other users can rent from. This lets people rent the equivalent of many TLOS worth of resources for very few TLOS each week. The TLOS tokens spent to rent resources through REX go into the payment pool and are shared as staking rewards by everyone staking their TLOS at that time.
How much reward can I get staking Telos REX?
Telos has significant REX staking rewards. They should be equivalent to around a 30% annual rate through the first several months of the Telos REX program. As more users stake their TLOS for REX, this yield rate will be reduced but still remain much higher than any other EOSIO chain’s REX rewards.
Can I still vote when I am staking my TLOS to REX?
Yes, tokens staked to REX can still be voted for block producer selection and other Telos governance functions. In fact, in order to qualify for REX staking, an account must vote for at least 21 block producers, you can also proxy your votes to a Telos voting proxy service.
Is REX inflation?
Telos REX is not inflation. In fact, for the next few years, Telos will be a 0% inflation blockchain. Currently, Telos is the only such EOSIO-based public blockchain.
Where do these tokens come from?
When Telos was launched, it distributed TLOS tokens for free to EOS genesis token holders. A number of tokens were also reserved for people who had been holding their EOS tokens on exchanges at the time of the EOS genesis snapshot. However, very few exchanges claimed the tokens reserved for them. Now that over half a year has passed, Telos tokenholders have voted to use these unused tokens to build and promote the blockchain in a number of ways, including paying significant staking rewards as a way to bring more users to Telos.
REX staking rewards are also paid from the fees that the network receives from RAM sales and special account name auctions, but these are a much smaller amount.
Why not just burn the extra tokens?
Telos already has a very low token supply. There are about 351 million TLOS in existence compared to over 1.1 billion EOS and more for other EOSIO-based tokens. Burning 139 million tokens would drastically change the economics of Telos. Additionally, REX incentivizes participation in Telos through voting and staking, which is one of the aims of this program.
Is it hard to stake for REX rewards?
It’s very easy to stake for REX. The function is built into most Telos wallets and block explorers and doesn’t require constant re-staking or other onerous or time-consuming actions. You can leave tokens staked for as long as you choose and continue earning rewards on them.
Is there any risk to REX staking?
EOSIO founder Dan Larimer affirms that there is no risk of token or value loss associated with staking tokens to REX. EOSIO tokens can never lose value in REX staking. This is particularly true on Telos where an additional 1 million TLOS per month will be dedicated to REX rewards.
Do I need to run a node to stake?
You don’t have to run a node to stake TLOS to REX. Many proof of stake (POS) coins require this, but Telos is a delegated proof of stake (DPOS) blockchain where constant staking by a node isn’t needed to secure the network.
Do I need to keep my wallet open all the time?
You only need to open your Telos wallet when you want to access your TLOS tokens to stake, unstake, vote, transfer them, or to use a Telos dapp or smart contract. Telos REX staking occurs in the background and requires no additional steps.
Can I send my TLOS that were already staked for resources to REX or must I wait until they’re liquid again?
Generally, TLOS tokens must be liquid (not staked for resources) in order to be used. However, any TLOS tokens, liquid or staked, can be staked to REX immediately without needing to unstake them first.
Can I sell or transfer my TLOS while they are staked for REX?
Tokens that are staked for resources or REX cannot be sold, transferred, or used for any other purpose until they are liquid again. Unstaking from REX takes four days for the TLOS to become liquid again. At that point you can use them any way you choose.
Is TLOS a “shitcoin”?
Some cryptocurrencies with high staking rewards derive them from inflation and add no real utility beyond the high staking rewards. This greatly undermines the value of any rewards.
Telos will have zero inflation for the next few years and more importantly, it is a leading blockchain in terms of transaction speed and network capacity. In fact, Telos holds the second highest record for the most transactions performed in 24 hours by any blockchain measured on Blocktivity.info. Moreover, Telos has many features at the leading edge of blockchain development including the most advanced Dapp governance toolkit in blockchain and decentralized file storage controlled by the blockchain. Telos brings real utility and innovation to the blockchain world.
What is Telos good for beyond REX staking?
Several dapps are deployed, or in the process of launching on the Telos blockchain. There are also enterprise computing and IoT device integration uses for Telos due to its high speed and capacity and fee-less transactions. Telos is one of the most advanced smart contract platforms in blockchain and more users are coming to it daily. Telos is also reaching into many parts of the world — particularly developing nations — in order to improve the financial tools available to people there.
What exchanges support Telos (TLOS)?
Telos trades on the Newdex, Chainrift, DEXEOS, CoinTiger, ABCC, and Akdex exchanges. More exchanges are scheduled to add TLOS trading pairs soon, including P2PB2B within weeks. A full list of Telos exchanges can be found at the Telos website: https://telosfoundation.io
What wallets can I use for Telos and REX staking?
Telos can be used from almost any wallet that supports EOS and other EOSIO-based blockchains. This includes Scatter, Lynx, Sqrl, CoolX, Kibisis, Awake, Math and other desktop and mobile wallets. Nearly all of these wallets support REX staking for Telos. For a full list of Telos wallets with safe download links, visit the Telos website: https://telosfoundation.io
HAPPY STAKING EVERYONE!
