Telos is taking decisive steps towards creating a sustainable economic model that distinguishes itself from other inflationary networks in the market. This article discusses the current realities of cryptocurrency and Telos's plans for achieving zero inflation.
The State of Crypto Today
The crypto industry is facing several negative trends.
✅ Real organic demand for crypto transactions remains modest—less than 1% of the world's population is involved in this sector.
✅ Most network activity is bot-driven, paid for by inflation, and ultimately pointless.
✅ Staking rewards and incentives consume a significant share of inflation, leading to circular and unsustainable processes.
Why This Matters
High inflation in networks creates perverse incentives to generate fake demand. Inflated ecosystems cannot build lasting demand. This leads to endless self-defeating cycles. Moreover, VC-backed chains have more resources, making it hard to compete with them.
Telos struggles in the DeFi space due to a volatile inflationary token. A sustainable TLOS will create a stronger foundation for growth.
Future Steps for Telos
Telos is focusing its efforts on:
✅ Exploring the implementation of a hard cap on TLOS supply. ✅ Identifying ways to grow authentic network activity and attract new users. ✅ Designing mechanisms to fund and secure the network without inflation. ✅ Enhancing utility to drive adoption and meaningful use cases.
Telos is on a path towards a sustainable and trustworthy future, eliminating inflationary mechanisms and creating real demand for its services. The significant changes made thus far highlight the network's commitment to becoming a model for the crypto industry.
