Telos R, first of all, is confusingly named. It will not replace our current TELOS but is another coin that in its use case has only very little to do with the original Telos and hence won’t really affect the old TELOS in a negative way.

While Total amount of TELOS R will be a fixed amount, the total amount of Telos R is not yet set, but it will depend upon amount of TELOS used to swap for it.

The thing is that the current plan is that when the prelaunch, or whatever we should call it in this case, starts, then it will be possible to switch TELOS coins to TELOS R coins with 1:1 ratio.

What is interesting in this is that these TELOS coins swapped to TELOS R coins will go out of circulation. Meaning that the TELOS coins left on people’s wallets will basically be more valuable as there are fewer TELOS coins in the market left.

After these three months is over these two coins will separate their paths, and after that you can buy TELOS R coins against TELOS coins through exchanges, just like you would buy any other coins in exchanges, meaning that instead of a fixed price the market sets the value, and in addition, these TELOS coins won’t go out of circulation anymore like the TELOS coins that will be used to buy TELOS R in the first three months will do.

WHAT IS THE USE OF TELOS R?

TELOS R will be DynaNETs reward token for peers, but to understand what that means, I am now going to explain the DynaNET as much as I have understood about it so far, for partially I haven’t quite figured out its usage possibilities.

DynaNET will be a DEX system consisting of 21 Trusted nodes, and unlimited amount of Peers.

These trusted nodes mean they are master nodes, but instead of giving a chance for anyone to put up one, there will only be 21 of these in total, and the ones allowed to run them will be handpicked.

The idea with this is that instead of ending up to Telos version 1 situation where we had over 10 000 Master Nodes, and most of them sucked and therefore the whole network was stuck, by giving a chance to only 21 Master Nodes to be run will give incentive for those running them be folks who actually know what they are doing and who are also willing to put money into running their master nodes properly since rewards will be pretty good for them as instead of over 10 000 master nodes sharing the pot, there will only be 21 master nodes sharing the pot.

And this all should result in a good and nicely working network which should require only very little maintenance from Pascal’s side.

The purpose of these Master Nodes is to be running something called VMS which Pascal prefers to call Bubbles for each supported chain (This could be BTC, ETH, TELOS, PIVX, etc.), and the catch for someone wanting to run one of these is that it provides DEX API for its owners, making it possible for them to build their own DEX platform or APP powered by DEX (I admit, I am not sure what exactly that means), and, I guess most important of all, master node owner will receive 1/21 of all fees from transactions, withdrawals from DEX, and trading.

THAT WAS MASTER NODES, BUT WHAT ABOUT THOSE PEERS?

Now notice how I said that TELOS R is a reward token for PEERS. This means (If I understood right) that those running Master Nodes are not getting them.

What PEER means, is Transcendence Dashboard.

Yes, all the people who are running their Transcendence Dashboards, meaning they keep it open and running (and synced I suppose), will get some TELOS R rewards thanks to keeping their Dashboard open and having copies of blockchains in their computers.

These rewards are 1/10th of all the rewards for these 21 master nodes. So these Master nodes are actually not getting 1/21th of all rewards in practice, since they need to pay out 1/10th of them to PEERS.

The interesting part in this payment to PEERs is that these master nodes will pay them with TELOS R. That if you are running your Transcendence Dashboard, you will be receiving TELOS R coins as a reward.

What makes this interesting is that since Master Nodes themselves are not getting TELOS R coins, this means they have to buy them from the market first.

And that means that as long as people keep trading in DEX, there will constantly be an automatic buyer for TELOS R coins making TELOS R have a constant buy force.

This then means that if no one is willing to sell their TELOS R coins for cheap, then that automatic buyer is forced to buy them for an expensive price.

If no one is willing to sell their TELOS R coins for less than a million a piece, then this automatic master node buyer will buy that TELOS R for that price, since it has to get that, for example, 0.005 pieces of a coin to be able to pay it to PEERS (Dashboard users).

And this is what makes TELOS R very interesting. As long as the DEX works out, TELOS Rs value can then be solely decided by sellers as long as sellers don’t start competing against each other.

For normally if you set the price too high, buyers are not interested and refuse to buy, but in this case master nodes automatic buyer is forced to use a certain amount of money to buy TELOS R, regardless of what the price is. Making TELOS R the ultimate Hodler coin.

Because TELOS Rs use case is limited to just this, it will naturally not affect TELOS much in a negative sense. It will not compete against TELOS coin, and for example, if you wish to gain better payment levels in Bitdorado Coin & Grow pools, you still need to use TELOS coins to achieve that since TELOS R will be useless for that purpose.

Now we just wait until Pascal announces that TELOS coins can be swapped against TELOS R coins. until that, better scrape those remaining Telos coins on sale in exchanges.

edit 7th of Aug 2021:

The plan about the Swap ratio has changed. The current plan is that the Swap ratio will be 2 Million Telos : 1 Telos R