TEP-4: Timeleap Network (Subnets)

This TEP was authored by Pouya Eghbali <pouya@timeleap.swiss> on 2025-02-24.
✍️
Draft
This TEP is still in draft and has not been accepted yet.

Abstract

Timeleap is a federated network where each node serves a distinct role—a fundamental aspect of its technical design. TEP-4 proposes extending this federation model beyond infrastructure to cover governance, management, and consensus of the system.

Rather than relying on a global consensus, we aim to introduce subnetworks (subnets), each operating independently while remaining interconnected through a federated governance protocol. This governance framework will unify all subnets under the TLP/KNS token.

Motivation

Timeleap is a distributed network designed specifically for distributed computation. Timeleap is designed to be fast; to make distributed computation feasible, it must be able to process a large number of transactions per second. Adding a global consensus model while keeping the network scalable is a challenge for the following reasons:

  • Scalability : A robust global consensus adds delays to the processing of transactions. While a few milliseconds of delay won't matter for most networks, it can be a significant bottleneck for distributed computation. This delay becomes more pronounced as the network grows.
  • Double Spending or Double Processing : A loose, asynchronous consensus model can lead to double spending or double processing of transactions. While the trade-off is acceptable for the primary use case of Timeleap, this solution leads to inefficiencies as with this model transactions can be processed before making sure a user has enough funds to cover them.

The challenges mentioned above occur when using an internal, global consensus model. To overcome them, we propose a subnet model where consensus is externalized and can be customized to the specific needs of each subnet. This approach not only resolves these issues but also brings the following benefits:

  • Customization : Each subnet can have its own consensus model, governance, and management. This allows for a more flexible and scalable network. Furthermore, the governance token, gas-fee model, and other factors can be customized to meet the specific needs of each subnet.
  • Scalability : By externalizing consensus, we can scale the network horizontally by adding more subnets. This approach allows for a more efficient network that can process a large number of transactions per second.
  • Data Privacy & Security : Subnets can be used to isolate data and computation, providing a more secure and private environment for users while still being interconnected with other subnets.
  • Laws & Regulations : Subnets allow compliance with local laws and regulations, which is essential for a global network like Timeleap, where legal requirements vary by region. In areas or use cases where these regulations are not a concern, public networks can be utilized to offer a more open and transparent environment.
  • Alliance : Smaller cloud providers, data centers, and other organizations can create their own subnets and join the Timeleap Network. This allows them to benefit from the network's security, scalability, and other features while maintaining their own governance and management. Offering a unified network with a federated governance model allows for collaboration between different organizations, creating a robust and decentralized network that can compete with bigger, centralized cloud providers.
  • Flexibility : Subnets can be created and removed at any time. This allows for a more dynamic network where subnets can be added or removed based on demand. This also allows for a more competitive environment where subnets can compete with each other to offer the best services to users.
  • No Lock-Ins : If a users isn't satisfied with a subnet, they can easily switch to another subnet without losing their data or having to go through a complex migration process. Users can also use multiple subnets at the same time to take advantage of different features offered by each subnet. Furthermore, users can opt to run their own subnet if they prefer to have full control over their data and computation, while still being interconnected with other subnets.

Specification

There Timeleap Network (Subnets) is a network of interconnected subnets, each operating independently with its own governance, management, and consensus model. Subnets are interconnected through a federated governance protocol that unifies all subnets under the TLP/KNS token. The following components are required to implement the Timeleap Network (Subnets):

Network Fees (Gas)

With subnets, each subnet directly receives its own gas fee for processing transactions. Subnets are responsible themselves for setting the gas fee and distributing rewards to their validators. The Timeleap Network license requires that all subnets use the TLP/KNS token as the gas fee.

Exceptions can be made under the BUSL license to allow subnets to use their own token, or non-crypto currencies as gas fees. In such cases, a portion of the gas fee must be converted to TLP/KNS and distributed to Timeleap to support the development of the network. The details of this conversion and distribution are out of the scope of this TEP and will be covered in a separate document.

Governance

All subnets are required to stake TLP/KNS tokens to participate in the Timeleap Network. The amount of TLP/KNS required to stake will be covered in a separate document. Staking should be done through a Timeleap certified smart contract that keeps track of each subnet. Slashing mechanism will be present on the governance contract to penalize subnets that misbehave.

Consensus is optimistic in this case. Subnets are responsible for their own internal consensus model. However, the externalized optimistic governance model specified in this document applies to all subnets, except those except by a custom BUSL license , for example, private networks where a different licensing model is used.

Users can vote against subnets that misbehave, and the governance contract will slash the subnet's stake if the vote passes. Each negative vote affects the reputation of the subnetwork. Network reputation is gained based on tokens staked, and the time the subnet has been active.

A vote against a subnetwork passes on either of the following conditions:

  • 51% of the total staked TLP/KNS votes in favor of slashing the subnet stake. In this casethe subnet is partially slashed and their reputation is reduced. ,
  • The reputation of the subnet drops below a certain threshold. In which casethe subnet is fully slashed and removed from the network. ,
  • The user provides undeniable proof of misbehavior. In this casethe subnet is partially slashed and their reputation is reduced. ,

Subnetwork Discovery

Subnets can be discovered through the Timeleap Subnet Discovery Network (TSDN). TSDN is a decentralized network that keeps track of all subnets and their metadata. TSDN itself is a Timeleap Subnet. Subnets can announce themselves to TSDN and provide metadata such as the subnet's name, description, functionality, etc... using a TEP-3 broadcast message.

A searchable directory of subnets will be available on the Timeleap website. Subnets can be discovered by searching for keywords, categories, or by browsing the directory. The directory will also show the reputation of each subnet based on the number of tokens staked and the time the subnet has been active.

Rationale

The Timeleap Network is designed to support distributed computation at scale. However, achieving scalability while maintaining a global consensus introduces significant challenges. A tightly coupled global consensus mechanism increases network latency, making high-throughput transaction processing inefficient. Subnetworks (subnets) address this issue by externalizing consensus, allowing each subnet to operate independently while remaining interconnected through a federated governance protocol.

By adopting this model, Timeleap enables a more flexible and scalable architecture. Each subnet can define its own consensus mechanism, governance structure, and fee model while adhering to the broader network principles enforced through TLP/KNS staking. This approach ensures that computation remains efficient without compromising security or decentralization.

Subnets also offer additional benefits, including regulatory flexibility, improved data privacy, and a more competitive environment where subnets can differentiate based on performance, cost, or feature set. Furthermore, by enabling independent subnet creation, Timeleap promotes a decentralized ecosystem where smaller cloud providers, data centers, and organizations can join the network while maintaining control over their infrastructure.

Backwards Compatibility

This TEP is backwards compatible with the existing Timeleap Network as it only affects how the network is managed and governed. All existing features and functionalities of the Timeleap Network will remain the same.

Reference Implementation

N/A

References

N/A

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