Telos Blockchain launches TBond Non fungible tokens

Telos, blockchain platforms has launched launch of T-Bond NFTs, a new fusion of DeFi and NFTs as a tool for unlocking liquidity. T-Bonds are an innovation in DeFi that allow tokens to be locked into transferable Non-Fungible Tokens (NFTs) that are then unlocked when the maturity date or other maturity conditions are met. These T-Bond NFTs can be sold or traded on secondary markets for investment or as a yield hedge for tokens offering staking rewards, much like U.S. Treasury Bonds or “T-Bills.”  

Today, projects face significant challenges when fundraising in the cryptocurrency ecosystem. A common scenario is when a project sells tokens at a discounted rate to support a technical milestone, such as a mainnet launch. As the company then makes tokens available through exchanges, buyers immediately capitalize on any early discount they received by selling their tokens. This undermines the goal of the original token sale, which is to sustainably support the project’s long-term growth.  

T-Bond NFTs solve this by allowing cryptocurrency projects to sell tokens that are locked in an NFT until the T-Bond’s maturity conditions are met. While the most common maturity condition may be a specific date, it can also be based on milestones such as the release of a project’s testnet, mainnet or other technical feature or even a specific token price. If a buyer needs access to liquidity before the maturity condition is met, they can simply sell their NFT on any supported secondary market. A T-Bond NFT can change hands as often as needed until its lifespan is reached, at which time the current owner can unlock its liquidity.  

"T-Bond NFTs offer a new and powerful option for any project seeking funding based on future technical achievement,” said Douglas Horn, Chief Architect of the Telos blockchain. “Back in the ICO boom and continuing still, far too many projects have raised funds only to see their token plummet in value and community support dwindle. T-Bond NFTs create an ecosystem where projects can raise funds through investors, who in turn have the freedom to sell their NFTs on the secondary market without impacting the token price. This facilitates a vastly more sustainable model by harnessing the new synergy between DeFi and NFTs.”