What is Telos (TLOS)?

By CMC AI
25 September 2025 03:34AM (UTC+0)

TLDR

Telos (TLOS) is a high-performance blockchain combining Ethereum compatibility with a deflationary token model, designed for scalable dApps and "ultra sound money."

  1. EVM Layer 1 – Runs Ethereum dApps at 15,000+ TPS with sub-second transactions

  2. Deflationary Design – Burns TLOS on every transaction to reduce supply

  3. MEV Protection – Built-in safeguards prevent front-running and value extraction

Deep Dive

1. Purpose & Value Proposition

Telos targets blockchain’s scalability trilemma by offering Ethereum Virtual Machine (EVM) compatibility with radically higher throughput (15,000+ transactions/second) and near-instant finality. It positions itself as "ultra sound money" through its deflationary token mechanics – every transaction burns TLOS, contrasting inflationary chains.

The chain emphasizes censorship resistance (100% uptime since 2018 launch) and fairness via MEV (Miner Extractable Value) protection, addressing vulnerabilities common in Ethereum-based systems (Telos Foundation).

2. Technology & Architecture

Built on EOSIO software with a delegated proof-of-stake (DPoS) consensus, Telos uses 21 elected block producers for energy efficiency. Its dual-layer architecture combines:
- EVM Layer: Full Ethereum compatibility
- Native Layer: Custom WASM-based smart contracts

Recent upgrades like SNARKtor (zero-knowledge proofs) enhance privacy and scalability, while Hyperlane integration enables cross-chain interoperability.

3. Tokenomics & Governance

TLOS serves as:
- Gas Currency: Fees fund network security and TLOS burns
- Governance: Holders vote on protocol upgrades via decentralized autonomous organization (DAO)

The supply cap is 466.6M TLOS, with 442.3M circulating as of September 2025. July 2025 saw 35,000+ TLOS burned, accelerating deflation (Telos Team Update).

Conclusion

Telos fundamentally reimagines blockchain infrastructure – merging Ethereum's developer ecosystem with enterprise-grade speed, deflationary economics, and MEV-resistant design. As adoption grows through partnerships like Aerodrome and OpenOcean, will its "ultra sound money" thesis attract sustainable dApp development?

CMC AI can make mistakes. Not financial advice.