Telos’ ‘T-Bond’ NFTs aim to breathe liquidity life into projects young and old


On Wednesday the Telos blockchain announced the launch of a new tool designed to help low-liquidity projects fundraise: a NFT product known as a “T-Bond.” 

In an interview with Cointelegraph, Douglas Horn — the author of the Telos whitepaper and the CEO of GoodBlock, a development company who assists with Telos core development — said that token-based fundraising is a tricky problem for both established and new projects.

“Many crypto projects face challenges similar to our own. Telos never raised any money in a token sale, but many that have done ICOs see their finances running low before their projects are market ready,” he said. “These projects find themselves with token reserves they can’t sell without immediately tanking their prices as liquid tokens go on the market.”

One possible solution is Telos’ new product: the T-Bond. T-Bonds are bundles of fungible tokens that have been locked into non-fungible tokens (NFTs) until a certain condition is met — for instance, the passage of a certain amount of time or the launch of a mainnet.

As a result of selling T-Bonds, projects can hypothetically raise funds without tanking their token prices. Additionally, with the advent of yield-bearing tokens, T-Bonds have the potential to become a tool for investors to hedge yield as well: