First Sales of T-Bond NFTs

25th January 2021 at 17 UTC

2021/01/25 17:00:00

Telos is preparing to sell the first ever tranche of T-Bond NFTs, which lock up fungible tokens in a Marble-standard NFT until their maturity date, but can be traded on secondary NFT markets until that date. The first tokens to be locked into T-Bond NFTs will be Telos system tokens, TLOS from the ‘tlosrecovery’ account, as part of the Telos Uniswap Liquidity Implementation Plan, which will add new DEX and CEX markets to TLOS trading and expand liquidity across the system to finally unlock real TLOS price discovery. Other projects are already lining up to use the T-Bond NFT system for their own needs.

How T-Bond NFTs Work

Investors can buy T-Bond NFTs from the initial sale page on Telos.net using pBTC wrapped-BTC tokens from pTokens. These can most easily and inexpensively be acquired directly from pTokens , but are also available from TSwaps.com, or exchanges such as Alcor.exchange.

The T-Bond NFTs will be made available on the primary sale website using the AreaX NFT Marketplace. Once purchased, the T-Bond NFTs may be listed for secondary sales on the AreaX NFT market, which takes a 0.4% market fee. T-Bond NFTs may be traded any number of times.

Each T-Bond NFT has a face value, which is the number of tokens that will be unlocked on maturity, and a maturity time, which is a date and time after which the tokens in the T-Bond can become liquid. The NFT also has a sale price. The difference between the sale price and the face value is the discount and the discount, measured against the maturity or holding period calculates the yield. When re-selling T-Bond NFTs, the owner sets the price—and therefore the discount and yield—or they could be sold at auction. After claiming the liquid tokens following the holding period, the NFT artwork will remain in the owner’s account as a digital collectible.

T-Bond NFT Advantages

T-Bond NFTs offer some clear new benefits to the community:

● Projects can raise liquid funds for tokens without increasing the number of tokens immediately available for sale—providing time for technical or economic improvements enabled by the fundraising to take effect before new liquid tokens hit the market.

● The NFTs seem unlikely to be deemed securities because all future tokens are transferred along with the NFT, but in a time-locked form, meaning no third-party is required for the owner to receive full use of their tokens and there is no third-party or default risk.

● Long-term investors can buy tokens at a discount, yet still have the ability to sell if their priorities change.

● Traders can use T-Bond NFTs to hedge or speculate on future yield rates for any T-Bond NFTs for tokens that contain a staking reward, similar to the active trading markets for US Treasury Bonds profiting on changes in interest rates.

The TLOS T-Bond NFT Sale

T-Bond NFTs offer some clear new benefits to the community:

The first sale of TLOS T-Bond NFTs will begin 25th January at 17 UTC at AreaX with the goal of funding the TULIP plan to massively expand TLOS liquidity and unlock real price discovery for the first time. This also provides an opportunity for Telos early community members to buy TLOS at discounts below what they will later sell for on the Ethereum ERC-20 TLOS token presale (per the TULIP plan).

TLOS T-Bonds will be sold in the following face values and holding periods:

Face Values

1,000 TLOS
5,000 TLOS
10,000 TLOS
50,000 TLOS
100,000 TLOS

Holding Periods

3 months (4.4% discount)
6 months (8.9% discount)
12 months (16.0% discount)
24 months (32.0% discount)

The Price Grid

Holding Period	3 months	6 months	12 months	24 months
Discount to Face Value	4.4%	8.9%	16.0%	32.0%

Face Value (TLOS)	Purchase Prices (TLOS)
1,000	956	911	840	680
5,000	4,780	4,555	4,200	3,400
10,000	9,560	9,110	8,400	6,800
50,000	47,800	45,550	42,000	34,000
100,000	95,600	91,100	84,000	68,000