What Is Tellor? How the Permissionless Oracle Network Works and How It Compares to Chainlink

“Tellor is a decentralized oracle protocol that incentivizes an open, permissionless network of data reporting and data validation, ensuring that data can be provided by anyone and checked by everyone.” – Tellor.io 

We live in a multichain world and every year, more and more blockchains are added to the growing list. These blockchains will need oracles in order to communicate with each other, and their smart contracts will need data provided to them.

Tellor has evolved significantly since its early days as an Ethereum-native price oracle. Today, Tellor operates a standalone Layer 1 blockchain called Tellor Layer, which is designed to reach consensus on arbitrary, subjective data — not just price feeds. Data is then relayed from Tellor Layer to destination chains including Ethereum and SagaEVM.

If we are to uphold the ‘True DeFi’ ethos, then we need to clearly define what decentralized blockchain oracles are in theory and practice.

What is Tellor Layer?

In Q3 2025, Tellor launched Tellor Layer — a standalone Layer 1 blockchain purpose-built to reach consensus on subjective, arbitrary data. This is a major architectural shift from the earlier model where Tellor reporters submitted data directly to Ethereum smart contracts.

With Tellor Layer, the oracle network operates its own chain, and data is then relayed to destination ecosystems (like Ethereum or SagaEVM) via a Relayer system. This design allows Tellor to serve multiple chains simultaneously without being constrained by any single blockchain’s throughput or gas costs.

Key milestones in the Tellor Layer rollout:

• Early 2025: Chickamauga Testnet launched for initial reporter and validator testing
• Q2 2025: Palmito Testnet deployed for broader stress-testing; Relayer frontend launched
• Q3 2025: Tellor Layer mainnet goes live
• 2025: SagaEVM integration announced, with Tellor positioned as the primary oracle for Saga ecosystems
• 2026: Tellor rewards fully transition to Tellor Layer; governance proposals refine minimum tip amounts and voting periods

For developers looking to integrate Tellor Layer data, the official Layer documentation is the current starting point.

Which Blockchains Does Tellor Support?

With Tellor Layer acting as the central consensus layer, Tellor can now relay verified data to multiple destination chains via its Relayer system. Confirmed and announced integrations include:

• Ethereum — Tellor’s original home; Ethereum-based smart contracts can still read Tellor data via the relay
• SagaEVM — Announced in 2025, Tellor is positioned as the primary oracle for Saga and SagaEVM ecosystems

The Relayer frontend, launched in Q2 2025, allows anyone to monitor active data relays from Tellor Layer to destination chains in real time.

This multi-chain architecture is what separates Tellor Layer from its earlier Ethereum-native design. Instead of deploying separate oracle contracts on each chain, Tellor Layer produces a single source of truth that is then broadcast to wherever it is needed.

How Does Tellor Achieve Decentralization?

The Tellor Oracle service achieves decentralization by making sure that anybody can participate (permissionless) and that anybody can check the validity of the data provided. Tellor assumes that the only way to get people to act in an economically rational way is if:

• You pay them to write oracle data
• You make them stake Tellor which can be lost if they submit inaccurate information.

In practice, this looks like:

1. When Tellor token is staked, the staker becomes a data provider
2. Data providers race to input data for certain questions in return for a reward from those who need the data (i.e. What is the price of PLS at 12:00 UTC Monday)
3. Any staker can dispute the accuracy of a data point, which opens a community vote among all stakers to determine validity. On Tellor Layer, governance proposals in 2025 adjusted the non-expedited voting period to give the community more deliberation time. The exact vote duration is subject to on-chain governance and may differ from the earlier 2-day window.
4. If the data point is determined to be erroneous, the provider gets “slashed” aka loses a portion of their staked Tellor
5. If the data point is determined to be correct, the provider receives no penalty.

The Tellor Protocol Stack

The Tellor protocol is built from several interconnected components. With the launch of Tellor Layer, the architecture has expanded. The core components are:

1. Autopay. The system that incentivizes reporters to submit specific data by allowing protocols to place tips for particular query IDs.
2. Telliot. The open-source reporting software that anyone can run to become a data provider. Telliot handles data sourcing, formatting, and submission.
3. Tellor Layer. The standalone L1 blockchain that serves as the consensus layer for all Tellor data. Reporters submit data to Tellor Layer, which then relays it to destination chains.
4. The Relayer. Launched in Q2 2025, the Relayer and its frontend dashboard allow anyone to monitor how data flows from Tellor Layer to integrated ecosystems like Ethereum and SagaEVM.
5. The Data Feed and Disputable Values Monitor. Tools for viewing on-chain data submissions and flagging potentially inaccurate values for dispute.

Tellor vs Chainlink

Tellor vs Chainlink: Which Oracle Is Right for Your Project?

The core philosophical difference between Tellor and Chainlink comes down to one question: who controls the reporters?

👉 Quick takeaway: Tellor’s permissionless reporter model offers stronger censorship resistance but narrower data coverage. Chainlink’s permissioned node set offers broader coverage and established integrations but gives the Chainlink team control over which reporters participate.

How to choose: If your protocol requires that no single entity can block your data feed — for example, a DeFi protocol that needs a truly trustless price oracle — Tellor is the stronger choice. If you need the widest possible selection of pre-built price feeds with minimal setup, Chainlink’s existing infrastructure may be more practical.

How does the Tellor Token (TRB) work?

The Tellor Token (TRB) is the native utility token of the Tellor protocol. While TRB originated as an ERC-20 token on Ethereum, its primary role has shifted with the launch of Tellor Layer. TRB now powers staking, governance, and reporter incentives on the Tellor Layer L1, with rewards fully transitioned to the Layer as of 2026.

TRB has several core functions:

1. Staking TRB. When enough TRB is staked on Tellor Layer, it enables a user to become a reporter or validator. This stake can be partially slashed if a reporter submits inaccurate data.
2. Tipping. TRB can be put up as a tip by external protocols to incentivize reporters to provide specific data. Governance proposals in 2025 introduced a minimum tip amount to improve economic sustainability.
3. Disputing. Any staker can dispute a reported data point. If the dispute is successful, a portion of TRB is taken from the incorrect reporter and awarded to the disputer.
4. Governance. TRB holders participate in on-chain governance votes on Tellor Layer, including proposals on voting periods, tip minimums, and protocol upgrades.

Note: The previously cited figure of ‘roughly 2.4 million TRB in circulation’ has not been verified against current supply data. For the most current TRB supply metrics, check a live on-chain explorer.

How to Read Tellor Data in a Smart Contract

For developers building on chains that Tellor supports, reading oracle data from Tellor is a straightforward process. The general pattern for reading a Tellor data feed in Solidity is:

1. Import the Tellor interface. Add the UsingTellor interface to your smart contract. This gives your contract access to the getDataBefore() function.
2. Specify your query ID. Each data type on Tellor has a unique queryId (e.g., the ETH/USD spot price has a specific queryId). You can find the full list in the Tellor documentation.
3. Call getDataBefore(). This function returns the most recent value for your queryId that was submitted before a given timestamp, along with the timestamp of that submission.
4. Check the timestamp. Always verify that the returned timestamp is recent enough for your use case. Stale data can create liquidation risks in lending protocols.
5. Decode the value. Tellor data is returned as bytes; decode it to the appropriate type (e.g., uint256 for prices).

For the complete code example and queryId registry, see the Tellor integration documentation.

How To Become a Tellor Reporter on Tellor Layer

One of Tellor’s defining features is that anyone can become a data reporter — no special hardware or permission from a central team required. With the launch of Tellor Layer in 2025, the process has been updated. Here is the current pathway:

Step 1: Acquire TRB. Purchase enough TRB tokens to meet the staking requirement for your target chain. Requirements vary by network.

Step 2: Stake TRB on Tellor Layer. Stake your TRB within the Tellor Layer staking contract. This stake is at risk if you submit inaccurate data and a dispute is upheld against you.

Step 3: Set up your reporting software. Run Telliot (the open-source reporting client) or build your own compatible software. Telliot handles data sourcing, formatting, and submission to Tellor Layer.

Step 4: Monitor your submissions. Use the Relayer frontend (launched Q2 2025) and the Disputable Values Monitor to track your reported data and watch for disputes.

Step 5: Earn rewards. Reporters earn TRB rewards from tips placed by protocols that need data, plus base Layer rewards. As of 2026, all rewards are distributed via Tellor Layer.

For the full technical setup guide, see the Tellor Layer documentation.

How Much Can Tellor Reporters Earn?

Reporter earnings on Tellor depend on several variables:

• The TRB token price at the time of reward distribution
• The number of active reporters competing for tips on your target chain
• The tip amounts placed by protocols that need data (governance proposals in 2025 introduced a minimum tip amount)
• Your reporting software’s uptime and accuracy rate (failed or disputed submissions reduce net earnings)
• Base Layer rewards distributed to reporters on Tellor Layer

The previously cited figure of approximately $50,000 per month in total tips has not been verified against current on-chain data and may reflect an earlier period. For current tip pool estimates, check the Tellor Data Feed dashboard or Tellor Layer block explorer directly.

What is clear: reporters who run reliable software, maintain high uptime, and avoid disputed submissions will capture a disproportionate share of available tips. The permissionless nature of Tellor means you are competing on execution quality, not on whether you have been approved by a central team.

Tellor Governance: How the Protocol Evolves

Tellor is governed by TRB holders who vote on proposals that shape the protocol’s rules and economics. With the launch of Tellor Layer, governance has moved on-chain, making it more transparent and participatory.

Notable governance activity in 2025-2026 includes:

• Minimum tip amount proposal: A governance vote established a floor for tip amounts to ensure reporters are economically incentivized to maintain uptime
• Non-expedited voting period adjustment: The standard voting period was adjusted to give the community more time to review proposals before they pass
• Audit activity: Multiple audits of Tellor Layer contracts were conducted and reviewed through the governance process

Any TRB holder can submit a governance proposal on Tellor Layer. Proposals that reach quorum and pass are automatically enforced by the protocol — no central team approval required. This on-chain governance model is a key part of what makes Tellor’s decentralization claim credible.