- Telos launches T-Bonds, a tool for unlocking liquidity
- T-Bonds are a combination of DeFi and NFT
- New projects can sell tokens in the form of T-Bonds
- T-Bonds cannot be unlocked unless met by certain conditions
The popular blockchain platform Telos released a press release on December 30, 2020, announcing the launch of T-Bond NFTs. The T-Bonds are ‘a new fusion of DeFi and NFTs’. New projects can use this tool to unlock liquidity.
T-Bonds will allow users to lock their tokens into transferable Non-Fungible Tokens (NFTs). These T-Bonds will remain as such until met by a certain condition. T-Bonds act like existing Treasury bonds (T-Bills). Meaning, owners can choose to trade or sell them on different markets.
Telos saw the need for T-Bonds as a solution to a rising problem in the cryptocurrency ecosystem. Douglas Horn, Chief Architect of the Telos blockchain said “T-Bond NFTs offer a new and powerful option for any project seeking funding based on future technical achievement”.
New projects sell tokens at reduced prices in their initial stages to achieve a milestone. But when these tokens become available on the exchange, buyers tend to sell their early tokens. They profit at the expense of hurting the goal of the original sale.
To combat this, Telos created T-Bond NFTs — a chance for new projects to sell locked tokens. Tokens that remain unlocked until it reaches its maturity condition.
Maturity conditions can be set as a specific date. Moreover, it can also be based on achieving a milestone — like the launch of a phase, testnet, or mainnet.
If a T-Bond holder suddenly needs access to liquidity, they can choose to sell their T-Bond to the highest bidder. Once a T-Bond becomes mature, its current owner can unlock its liquidity.
