TON Coin (The Open Network) is a Layer 1 blockchain platform that focuses on security, safety, and scalability, capable of handling millions of transactions per second.
Established in late 2017 to early 2018, TON was developed by the Durov brothers, who are also the founders of Telegram Messenger Inc. The platform was designed with the mission of attracting millions of new users.
Initially, Telegram planned to launch the sale of TON network tokens (then called Telegram Open Network) through an ICO in 2018. However, this event was banned by the United States Securities and Exchange Commission (SEC) in March 2020 due to violations of securities regulations in the United States.
In May 2020, Pavel Durov announced that Telegram had officially abandoned the project and outlined refund options for investors. The TON Coin project was handed over to two developers, Anatoliy Makosov and EmelyanenkoK, who later developed it into The TON Foundation, making TON a decentralized community.
Besides The TON Foundation, the project also includes The TON Society, a community for developers focused on research and product innovation. This community serves as a platform for collaboration and development within the TON ecosystem, encouraging the creation of new applications and improvements to the network.
Table of Contents
What are the Highlights of TON Coin ?
The Open Network (TON) is the core of its ecosystem, and it features several notable aspects:
- TON uses a Proof of Stake (PoS) consensus mechanism along with the Byzantine Fault Tolerance (BFT) consensus algorithm.
- TON has also developed its own Virtual Machine, known as TVM or TON VM.
- Currently, the TON blockchain has processed over 89 million transactions and supports 1.4 million wallets, which represents a 238% growth within six months, and it has 293 validators.
TON also considers itself a more optimal blockchain in terms of scalability and transaction processing compared to two major blockchains, Ethereum and Solana.
Products of The Open Network
TON Payments
TON Payments is a payment system based on the TON blockchain, where transactions are conducted off-chain, allowing for fast and low-cost payments.
TON Proxy
TON Proxy allows users to access the TON blockchain using decentralized VPNs, helping to avoid censorship when using DApps.
TON DNS
Similar to the Ethereum Name Service, TON DNS is a domain name service that makes cryptocurrency wallets, smart contracts, and websites more user-friendly. This platform provides users with concise identifiers instead of using the complex character strings of wallet or smart contract addresses.
TON Storage
TON Storage is a decentralized storage project launched by TON in early 2023. It aims to allow users to exchange files of any size, which are backed up and encrypted without the need for centralized servers.
TON Wallet
TON Wallet is the official wallet of the TON ecosystem, enabling users to store TON coins and tokens compliant with the TON721 standard, and it supports connections to DApps within the TON ecosystem. TON Wallet is currently available on various operating systems including Android, iOS, Windows, and macOS.
Basic Information About the TON Token
Allocation of TON Tokens
Initially, the project did not allocate TON tokens at a fixed rate. Instead, it allocated 98.55% of the total TON token supply through mining activities using the Proof of Work (PoW) consensus mechanism. During this stage, approximately 200,000 TON tokens were mined daily. After 2 years, the project transitioned to allocating tokens through the Proof of Stake (PoS) consensus mechanism.
What is the TON Token Used For?
TON is the native token of The Open Network and is used in the following cases:
- Transaction fees and network fees within The Open Network.
- Token holders can participate in project governance.
- Used for paying service fees within the TON ecosystem, such as TON Services, TON Storage, TON DNS, TON Proxy, etc.
- Rewards for validators.
Where Can Investors Trade TON Tokens?
Currently, investors can trade TON tokens on:
CEX Exchanges: Bybit, MEXC, OKX, Bitget,…
DEX Exchanges: Uniswap, PancakeSwap, Biswap, DeDust,…
Investors can store TON tokens in which wallet?
Investors can store TON tokens in wallets such as Metamask, Trust Wallet, etc., as it adheres to the ERC-20 and BEP-20 standards. Additionally, investors can also store TON tokens in wallets within The Open Network ecosystem, such as TON Wallet, Tonkeeper, Tonhub, depending on their usage preferences.
For convenience in trading, investors can also store TON tokens in wallets provided by exchanges that list this token.
Some notable highlights of the TON blockchain include
Similar to most blockchains today, the TON blockchain utilizes the Proof of Stake consensus mechanism. As of now, the network has 293 validators spanning across 28 countries, with over $435 million worth of TON tokens staked.
Despite being capable of achieving processing speeds of over 100,000 transactions per second in testing, TON currently handles around 2-3 million transactions per day, with approximately 15-30 transactions processed per second.
One notable aspect of the TON blockchain is its deep collaboration with Telegram. TON was selected as the payment network within Telegram, with the Ton wallet integrated as a convenient Telegram Bot for users.
Telegram Bots are small applications running within Telegram, which can be embedded into Telegram chats or channels to perform specific functions (such as token price alerts, wallet activity notifications, etc.). Currently, there are over 10 million Telegram Bots developed and operating freely for both users and developers.
Similar to Google Play or the App Store, Telegram has a tApps Center, serving as a store where users can install apps and Telegram Bots.
The Ton blockchain provides developers with tools to facilitate the creation of applications that run directly on Telegram, making development more accessible. Additionally, Ton continuously runs grant programs to support projects interested in developing on Ton. Projects developed on the Ton blockchain are also given priority for advertising through Telegram Ads.
With these efforts, the Ton blockchain aims to attract 30% of Telegram users to utilize Ton services within 3 to 5 years.
The Ton Blockchain Ecosystem
Dapp
The emphasis on attracting developers has led to the emergence of numerous new projects within the Telegram ecosystem. The initial branches of projects include:
- Staking
- DEX/NFT marketplace
- Wallet
- Launchpad
- Game
- Explorer tools
While there are many new projects emerging, the Ton blockchain still lacks many project teams compared to other ecosystems. For example, in the DeFi sector, the Ton ecosystem still lacks lending or aggregator projects,…
The total value of assets locked on TON has increased in recent months but is still relatively small at $80 million.
AMM
The current trading volume on Ton is quite stable relative to the locked asset value. With the emergence of many projects with tokens, AMMs will benefit as tools for asset circulation within the ecosystem. However, there is a significant disparity between TVL and the diluted market capitalization of AMMs on the Ton blockchain at present.
With projects still in the development stage and the overall market meme wave, most of the tokens receiving the initial inflow of funds on the TON blockchain are meme coins.
- Could you please review the article on how to buy
meme coins on the TONnetwork
With the increasing liquidity within the ecosystem and the relatively small market capitalization, meme coins are likely to remain the center of attention until the TON network launches more high-quality token projects. However, users need to be particularly mindful of the nature of meme coins. Creating tokens is currently very easy, and most meme coins will likely become worthless over time.
Liquid Staking
Staking TON on various liquid staking protocols is also relatively developed. The current yield ranges from 4-5% APY, and leading liquid staking protocols have not yet issued tokens. Some projects are even running point programs to incentivize users to stake TON.
Currently, users can not only hold LST but also swap LST tokens back to $TON and deposit them into other liquid staking protocols to increase their chances of receiving airdrops. However, it’s essential to be aware of associated risks such as rug pulls, hacks, etc.
Launchpad
The majority of tokens on the TON blockchain are currently launched directly by creating liquidity pools on AMMs. Leading launchpad projects like Tonstarter only engage in partnerships with projects and organize tasks such as liking, following, and trying out products to earn points. Subsequently, tokens are distributed based on the proportion of points earned by users.
However, with an increasing number of projects emerging, it’s entirely possible that launchpad projects will issue tokens and conduct more IDOs (Initial DEX Offerings) on the Ton blockchain.
NFT
NFTs on the Ton blockchain are gradually developing. Initially, leading collections focused on services like Telegram usernames, domains, or imitations of famous collections from other ecosystems like Ton Rock, Ton Punks. Now, top collections in terms of transaction volume are beginning to establish their own identity. There is a possibility of trend-setting NFT collections launching on Ton if the ecosystem continues to attract community interest and liquidity.
Telegram apps & bot
The unique advantage of the Ton blockchain compared to other ecosystems is its integration with Telegram apps and bots. Users can directly use dApps within the Telegram app without having to log in through an external browser. With the massive existing user base, this presents a significant potential customer pool for Ton.
It’s evident that the top apps on the Ton blockchain currently all have Telegram app versions. Ton itself and projects on Ton have been organizing many programs to encourage users to use the Telegram app to receive daily rewards. The Telegram wallet also helps manage users’ seed phrases, allowing users to simply learn how to transfer $TON into their wallets to use services on the Ton blockchain.
There are now emerging apps that only have versions on the Telegram app and not on other browsers, especially gaming projects. Although the quality of these games may not be very high, they are quite suitable for social media-style games as we often see on Facebook. Combined with the ability to earn money, games on Telegram are attracting many users to participate daily.
Official website of TON
Currently, the official website of TON is TON.ORG. The spoof website is TONCHAIN.NET.
Perspective and Projection
Ton blockchain stands out among the myriad of chains in the market today. Its advantage lies in its user base and unique integration with the Telegram app, which positions Ton blockchain for strong growth potential.
With its current pace of development, we will see the missing pieces in the Ton ecosystem gradually fill in. Most meme coins will be replaced by tokens from projects with quality products within the ecosystem.
The strong community nature of PFP NFTs aligns well with social networks like Telegram. One or more PFP collections with strong communities and high values will likely emerge.
The most prominent projects are likely to be those with both browser and Telegram App versions, or perhaps exclusively on the Telegram App. Projects aiming to stand out on the Ton Blockchain should leverage the advantages of Ton Blockchain.
Summary
The Ton blockchain is currently in an accelerating phase with many programs attracting developers and users to the ecosystem. With a vast potential customer base coming from Telegram, Ton blockchain has many growth opportunities if it can further optimize the user experience alongside product development within the ecosystem.
