TPL is a self-regulatory system that allows projects to control the ways in which their native digital assets are transferred on an ongoing basis.
By implementing TPL, projects can guarantee compliance with any requirement they set for their tokens in every single exchange between participants.
Current blockchain-based protocols lack an effective governance mechanism that ensures token transfers comply with requirements set by the project that issued the token.
Projects need to set requirements for a variety of reasons. For instance, remaining compliant with securities laws, limiting transfer to beta testers, or limiting transfer to a particular geo-spatial location. Whatever your reason, if a requirement can be verified by a third-party, TPL will be able to help.
TPL is an opt-in regulatory system that is governed by the network and enforced on-chain, allowing parties that trust each other to transact securely. It is inspired by SSL (Secure Sockets Layer), a protocol created by Netscape in 1994 and adopted by major web browsers to identify secure connections to a server via the Internet.
TPL allows for the creation of digital “jurisdictions” with requirements that are administered and regulated on-chain by one or more projects. Within these jurisdictions, third-party organizations operate as “validators” which identify whether a proposed token transfer is compliant with the requirements of the jurisdiction. Projects can tailor the TPL to limit transfers of their tokens on an ongoing basis, using any criteria that can be recorded in a registry by a validator.
TPL is an open protocol in which any individual or organization can fulfill any role in the ecosystem. We firmly believe that an open - rather than a closed - system will maximize innovation going forward.
Entrepreneurial validators and projects can be compensated for the innovations they introduce to TPL by collecting fees for validations or establishing jurisdictions that become industry standards for particular types of token transfer.