Tellor (TRB) is an oracle network that connects smart contracts on Ethereum to external data. This means the Tellor network is used for answering any question of any format on-chain. The network is secure, transparent, and designed for decentralized applications (DApps) based on Ethereum. The network aims to become a reliable and stable off-chain data provider being trustless and decentralized. 

Generally, crypto users have to search through many exchanges to find live market data and relevant information. Further, the smart contracts developed by exchanges don’t have access to trustless off-chain data. To address this, the Tellor network was developed that allows smart contracts to connect with on-chain data. Tellor has created an ecosystem where users can access fact-checked information. In simple terms, the project is made to solve the problems of oracles.

Running on Ethereum, the Tellor network is composed of interconnected “reporters” who work on providing the on-chain data. As per the whitepaper, these reporters are the bonded set of miners that provide answers to questions on-chain for others to use without any cost. Working on the proof-of-work mechanism, the reporters compete to record that data on-chain whenever the data is requested. The reporters, in turn, are incentivized for honest reporting. This is how the network is secured and made trustless and decentralized.

Coming to the token, TRB is the native token of the Tellor network and serves as the platform’s cryptocurrency. According to the website, TRB is an ERC20-based utility token primarily used to incentivize the reporters. The token is rewarded to data reporters to submit timely and accurate data. Moreover, the token is also used as a governance token of the platform. The TRB holders can vote on data disputes, upgrades to the network, monetary policies, mining rewards, etc.  

Controlled and run by the community, the Tellor network has several use cases:

Based in the US, Tellor was cofounded by Brenda Loya, Micheal Zemrose, and Nicholas Fett in 2019. 

Loya, the CEO, was a former economist for the US government. She has vast experience in data science and blockchain.

Zemrose, the CSO, is an expert in developing, executing, and sustaining strategic initiatives.

Fett, the CTO,  is experienced in derivatives and economics. Before Tellor, he founded Daxia, a derivative protocol on Ethereum.

As already discussed, Tellor is a network of reporters that use a proof-of-work mechanism to validate the transaction and secure the network. The reporters are the staked miners. As per the whitepaper, to become a reporter, the user has to stake 100 TRB tokens. These TRB tokens are locked until the reporter requests to withdraw them. 

Once the reporter submits their deposit, they can start competing to answer the questions provided on-chain. These questions can be anything, like ETH/USD, Bitcoin block header information, weather data, etc. After providing answers, the reporters are rewarded TRB tokens. 

So, although the Tellor network is dependent on mining, the process is conducted by miners who have staked their tokens in the system. 

There is no cap on the maximum TRB tokens to be issued. The TRB is deflationary in nature, i.e., the tokens are burned to an unrecoverable wallet and are put out of the total supply. This deflationary nature makes the TRB token increase its value over time. Thus, the total number of TRB tokens in the market is volatile and keeps changing.