This wiki page seems a little clearer, though anything prefaced with "My Understanding" might be a little suspect.

https://github.com/quartzjer/TeleHash/wiki/My-Understanding-...

So my understanding of that is that TeleHash is something of a cross between BitTorrent and Tor. Theoretically it allows for a totally distributed Internet. Though it looks like the implementation is rough, so it's hard to say how well-defined the protocol is.