TON Introduction
The Open Network (TON) is a decentralised and open internet platform that includes various components such as the TON Blockchain, TON DNS, TON Storage and TON Sites. TON is dedicated to achieving extensive cross-chain interoperability within a highly scalable and secure framework. It is engineered to handle millions of transactions per second (TPS) and aims to serve hundreds of millions of users in the future. At its core, the TON Blockchain acts as the foundational protocol, integrating TON's infrastructure and forming the broader TON Ecosystem.
Originally developed by the Telegram team, TON is a layer-1 PoS blockchain that has been transitioned to the open-source community. It addresses critical issues like speed, cost and scalability found in platforms like Ethereum, through advanced dynamic and infinite sharding techniques. TON's objective is to transform the existing internet by integrating multiple blockchain-based components, including DNS, decentralised storage and websites.
TON seems to hold a distinct advantage over other networks due to its association with the secure messaging application Telegram, the original developer. Leveraging Telegram's massive existing user base of over 930 million monthly active users provides TON with a significant head start in adoption. Unlike many blockchain projects that seek to build a community from scratch, TON inherits a vast and growing network of users already familiar with the Telegram platform. This established user base not only could accelerate TON's adoption but also fosters a community deeply integrated with the platform's ethos. Telegram's seamless integration of TON into its messaging ecosystem may further strengthen their position, offering users a familiar interface to access blockchain-based services effortlessly. This symbiotic relationship between Telegram and TON makes this project a particularly interesting one to watch.
The TON Blockchain is designed as a distributed supercomputer, or "superserver," and offers a wide range of products and services intended to support the evolution of a decentralised internet. This comprehensive approach positions TON as a pivotal player in the development of a new decentralised vision for the internet.
TON also serves as a hub for learning and documentation, with the TON Society publishing blog posts by key community developers on fundamental topics. The platform hosts official online hackathons known as Smart Challenges for developers with some TON knowledge and supports local Hack-a-TONx events to engage developer communities worldwide.
For developers, TON offers a detailed guide to the TON Blockchain, an educational course designed to teach developers how to create smart contracts and decentralised applications on the TON Blockchain. This course includes nine modules covering the basics of the TON Blockchain, the FunC programming language and the TON Virtual Machine (TVM).
History of Mining:
Toncoin was allocated through PoW Givers, smart contracts that were each assigned a specific amount of Toncoin.
The Era of Toncoin Mining Concluded:
In June 2020, nearly all Toncoin tokens (98.55% of the total supply) were released for mining through Giver smart contracts, enabling public participation until 28 June 2022. Around 200,000 TON were mined daily. After two years, the mining of the last Toncoin marked the end of TON’s initial distribution phase.
A Revolutionary Blockchain Consensus:
Mining on the TON Blockchain, which employed a proof-of-stake consensus, diverged from traditional systems like Bitcoin that use proof-of-work. This older method is crucial for sustaining the network, creating blocks and distributing coins. In contrast, TON relies on an alternative mechanism to maintain functionality and distribute new coins. Mining remains the sole method for acquiring new coins, promoting equitable distribution among network participants.
The Advent of Proof-of-Stake:
Next-generation blockchains utilise a proof-of-stake system, eliminating the need for mining. This evolution enhances transaction speed and reduces costs. However, in PoS systems, developers initially issue tokens and control their sale and distribution, a method that contrasts with the decentralised ethos of blockchain technology. TON Blockchain was the first to combine these consensus methods, operating on a proof-of-stake basis to ensure efficiency and reduced costs. Initially, however, tokens were distributed through mining, offering a decentralised and equitable approach. This model, known as initial proof-of-work, presents clear advantages and is likely to influence future digital asset projects.
An Unplanned Start:
Mining on TON began unexpectedly. In 2020, following a legal settlement with the U.S. Securities and Exchange Commission, the Telegram team was compelled to discontinue their work on The Open Network. Opting to withdraw from the project while allowing enthusiasts to explore the technology, they released all network coins into smart contracts for public mining. Mining commenced on 6 July 2020, coinciding with the release of mining guidelines and miner code. Initially, the blockchain was a testnet with tokens intended solely for testing purposes. Remarkably, within a year, a vibrant Toncoin mining sector had emerged.
Distribution of Tokens:
Ultimately, all tokens were distributed to thousands of miners without an ICO, IEO, or any token sale, mirroring Bitcoin's organic growth. The earliest miners faced minimal competition. Their contributions helped establish the TON Foundation and the TON Reserve, both vital to the network's development. With the depletion of the PoW Giver smart contracts, traditional TON mining ended. However, the TonWhales team introduced the Infinity TON Mining Pool, a novel solution for those wishing to continue mining Toncoin.
Future Prospects:
Following its initial coin distribution, TON transitioned to a new phase by adding more validators and increasing the coins used for validation, thereby enhancing network stability and security. As a proof-of-stake blockchain, TON depends on validators operating special nodes to maintain the network. Validators engage in network operations and earn new Toncoin as a reward, with about 0.6% of the total supply generated annually. Anyone with a powerful server and adequate Toncoin for staking can become a validator. The TON Ecosystem includes nominators, who lend their Toncoin to validators for staking and share in the rewards.
Overview of TON’s Decentralisation
From its beginning, modifications or updates to the network necessitate the consent of 66% of the validators.
Any individual who has sufficient Toncoin to stake and the necessary hardware can become a validator. There is no central control or master key — all authority is held by the community.
Becoming a Validator on TON
TON operates on a Proof of Stake consensus model, ensuring network security and stability through a group of validators. Anyone can become a validator, contributing to network security and earning Toncoin rewards in the process.
Roles of Validators
Validators are responsible for verifying all user transactions. If consensus is reached among them that a transaction is valid, it gets included in the blockchain; invalid transactions are rejected.
Rewards for Validators
Validators earn rewards in two ways as detailed by the table below:As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
Requirements to Earn Rewards
To qualify for rewards, a validator must:
- Win Validator election to validation cycle:
- Successfully submit an election — you need a minimum stake of 300k TON.
- Win the election with at least 400k TON and not be excluded because the maximum validator quantity for the election is reached.
- Successfully validate blocks throughout the entire Validation Cycle.
Penalties
Validators face penalties for two types of misconduct: idle and malicious behaviour, both of which are strictly prohibited and may lead to fines.
How to Become a Validator
To become a validator, individuals need access to high-performance hardware and a reliable network, with at least 300,000 TON as a stake. Validators commit their Toncoin for a specified term, which is refunded with interest after the validation round is complete.
Validators can manage their nodes using MyTonCtrl, a user-friendly open-source tool available both as a Command-Line Interface and a Web User Interface.
Toncoin: Overview of the Cryptocurrency's Function and Market Position
Toncoin is the native cryptocurrency of the TON network, utilised for a variety of network operations including transactions and the facilitation of activities on games or collectibles built on the platform. It serves multiple functions within the TON ecosystem and is involved in different facets of decentralised finance and blockchain activities.
Market Data
Toncoin can be purchased on cryptocurrency exchanges or directly within digital wallets, allowing users to choose the most convenient option. The latest data indicates that Toncoin is priced at $5.80, with a minor decrease of 0.63% in the last 24 hours. It is ranked ninth in global cryptocurrency standings with a market capitalization of $20.13 billion and a trading volume of $156.51 million.
Decentralised Finance and Usage
Toncoin is used for enhancing network security through contributions to nominator pools. It facilitates currency exchanges on decentralised platforms and enables cross-chain transfers from networks like Ethereum to TON. Toncoin also allows for the acceptance of global payments with low transaction fees and supports the creation of new cryptocurrencies through token minting.
Practical Applications and Future Outlook
In terms of practical applications, Toncoin handles transaction processing fees for smart contracts and powers payment services on applications running on the TON platform. It supports network security through staking and is used in cross-chain transaction fees. Toncoin also plays a role in TON's on-chain governance and is utilised for payments in blockchain-based domain name services. Looking ahead, Toncoin is expected to be used for payments related to TON Proxy and decentralised data storage, highlighting its utility in supporting and maintaining blockchain infrastructure.
Ton Roadmaps:
Ton Key Metrics Overview:
The TON blockchain has demonstrated significant expansion and activity across several domains, as evidenced by recent data. The total supply of TON tokens has continued to grow steadily, reaching over 5.1 billion. Concurrently, the daily fees collected on the network have shown fluctuations, with recent data recording around 11,211 TON.
Although daily trading volumes have seen some volatility, they remain substantial. The total TON coins locked in liquid staking protocols have reached nearly 50 million, suggesting a strong commitment from network participants to secure and stabilise the blockchain.
Activity in the TON network's wallet ecosystem is robust, with over 3.6 million on-chain activated wallets and a dramatic increase in daily wallet activations, which recently peaked at 23,832. The number of active wallets continues to surge, highlighting a growing user base engaged in daily transactions, which recently surpassed 4 million on some days.
Over 3.4 million NFTs have been minted. Furthermore, the platform’s Jetton wallets, which facilitate token transfers and transactions, have grown to over 2.7 million. Additionally, the volume of TON DNS trading, representing decentralised domain name operations, has reached significant volumes, emphasising the blockchain's utility beyond simple asset transfers.
Ton Memelandia Overview
Another interesting development pertains to Memelandia. Ton Memelandia is an innovative initiative by the TON Foundation, designed as a cultural hub specifically for meme coins and community tokens. This platform aims to elevate the profile and utility of meme coins, which are often sidelined in mainstream cryptocurrency markets.
Key Features of Ton Memelandia:
Ranked TOL (Ton Online Leaderboard): The platform includes a real-time leaderboard that evaluates and ranks meme coin and community token projects. This ranking is based on a variety of metrics such as transaction volume, user engagement, total value locked, number of holders and distribution of airdrops. The leaderboard is designed to promote competition and innovation among participants.
Marketing and Community Support: Memelandia offers extensive marketing support, utilising TON's resources for targeted campaigns and strategic partnerships to enhance the visibility and credibility of the tokens. This support extends to integration with Telegram, providing projects with direct access to its vast user base, which facilitates engagement and potential support.
Incentives and Rewards: The initiative is part of The Open League, a long-term incentive program that provides financial rewards to encourage growth and engagement within the meme coin communities. This includes financial incentives and rewards for projects that show significant growth and engagement.
Simplified Token Creation and Promotion: The platform enables users to easily create their meme coins using no-code solutions and open-source templates provided by TON. It supports projects throughout their lifecycle, from fair launches and presales to airdrops, helping to build community and promote wider adoption.
Overall, Memelandia represents a strategic effort by the TON Foundation to embrace and promote the distinctive culture of meme coins within the cryptocurrency landscape, aiming to provide these projects with the necessary tools and visibility needed to succeed in a competitive market.
For a fully comprehensive overview of the projects, take a look at the chart below. Chosen groups vie for accolades in The Open League's Memecoin and Community Token contest. It is worth noting, this roster does not constitute financial guidance or an endorsement;
Conclusion
Engineered for cross-chain interoperability and high scalability, TON is capable of supporting a large volume of transactions per second, catering to a potentially extensive user base in the future.
The TON Blockchain, the central component of this platform, integrates various elements of TON’s infrastructure, enhancing the overall ecosystem. Initially developed by the Telegram team, TON has transitioned to the open-source community and operates on a Proof of Stake basis. This structure addresses issues such as speed, cost and scalability that are prevalent in other platforms like Ethereum, by utilising advanced sharding techniques.
Educational outreach and community engagement are also significant aspects of TON. The platform serves as a hub for learning, with the TON Society publishing content from developers and hosting events such as Smart Challenges and Hack-a-TONx to promote development within the network. For developers, TON provides detailed guides and educational courses for creating smart contracts and decentralised applications.
TON's governance model requires a consensus of 66% of validators for network updates, ensuring that any changes have widespread support within the community. This democratic model allows anyone with adequate resources and Toncoin to participate as a validator, contributing to a decentralised governance structure.
As TON develops further, it emphasises reinforcing its network and infrastructure to better support decentralised technologies. With a commitment to strengthening platform capabilities and fostering a community-driven development approach, TON is strategically enhancing its system to support the needs of a decentralised internet. This focus includes increasing the reliability and efficiency of the network, ensuring it can adequately serve a growing number of users while maintaining transparency and decentralisation in its governance processes.
Valour, a leading digital asset ETP issuer, recently announced the launch of a TON ETP tracking the price of Toncoin and thereby providing investors access to this project through their traditional stock trading accounts. The Valour Toncoin ETP is available for trading on Nordic Growth Market, Nordnet, and Avanza.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
TON Introduction
The Open Network (TON) is a decentralised and open internet platform that includes various components such as the TON Blockchain, TON DNS, TON Storage and TON Sites. TON is dedicated to achieving extensive cross-chain interoperability within a highly scalable and secure framework. It is engineered to handle millions of transactions per second (TPS) and aims to serve hundreds of millions of users in the future. At its core, the TON Blockchain acts as the foundational protocol, integrating TON's infrastructure and forming the broader TON Ecosystem.
Originally developed by the Telegram team, TON is a layer-1 PoS blockchain that has been transitioned to the open-source community. It addresses critical issues like speed, cost and scalability found in platforms like Ethereum, through advanced dynamic and infinite sharding techniques. TON's objective is to transform the existing internet by integrating multiple blockchain-based components, including DNS, decentralised storage and websites.
TON seems to hold a distinct advantage over other networks due to its association with the secure messaging application Telegram, the original developer. Leveraging Telegram's massive existing user base of over 930 million monthly active users provides TON with a significant head start in adoption. Unlike many blockchain projects that seek to build a community from scratch, TON inherits a vast and growing network of users already familiar with the Telegram platform. This established user base not only could accelerate TON's adoption but also fosters a community deeply integrated with the platform's ethos. Telegram's seamless integration of TON into its messaging ecosystem may further strengthen their position, offering users a familiar interface to access blockchain-based services effortlessly. This symbiotic relationship between Telegram and TON makes this project a particularly interesting one to watch.
The TON Blockchain is designed as a distributed supercomputer, or "superserver," and offers a wide range of products and services intended to support the evolution of a decentralised internet. This comprehensive approach positions TON as a pivotal player in the development of a new decentralised vision for the internet.
TON also serves as a hub for learning and documentation, with the TON Society publishing blog posts by key community developers on fundamental topics. The platform hosts official online hackathons known as Smart Challenges for developers with some TON knowledge and supports local Hack-a-TONx events to engage developer communities worldwide.
For developers, TON offers a detailed guide to the TON Blockchain, an educational course designed to teach developers how to create smart contracts and decentralised applications on the TON Blockchain. This course includes nine modules covering the basics of the TON Blockchain, the FunC programming language and the TON Virtual Machine (TVM).
History of Mining:
Toncoin was allocated through PoW Givers, smart contracts that were each assigned a specific amount of Toncoin.
The Era of Toncoin Mining Concluded:
In June 2020, nearly all Toncoin tokens (98.55% of the total supply) were released for mining through Giver smart contracts, enabling public participation until 28 June 2022. Around 200,000 TON were mined daily. After two years, the mining of the last Toncoin marked the end of TON’s initial distribution phase.
A Revolutionary Blockchain Consensus:
Mining on the TON Blockchain, which employed a proof-of-stake consensus, diverged from traditional systems like Bitcoin that use proof-of-work. This older method is crucial for sustaining the network, creating blocks and distributing coins. In contrast, TON relies on an alternative mechanism to maintain functionality and distribute new coins. Mining remains the sole method for acquiring new coins, promoting equitable distribution among network participants.
The Advent of Proof-of-Stake:
Next-generation blockchains utilise a proof-of-stake system, eliminating the need for mining. This evolution enhances transaction speed and reduces costs. However, in PoS systems, developers initially issue tokens and control their sale and distribution, a method that contrasts with the decentralised ethos of blockchain technology. TON Blockchain was the first to combine these consensus methods, operating on a proof-of-stake basis to ensure efficiency and reduced costs. Initially, however, tokens were distributed through mining, offering a decentralised and equitable approach. This model, known as initial proof-of-work, presents clear advantages and is likely to influence future digital asset projects.
An Unplanned Start:
Mining on TON began unexpectedly. In 2020, following a legal settlement with the U.S. Securities and Exchange Commission, the Telegram team was compelled to discontinue their work on The Open Network. Opting to withdraw from the project while allowing enthusiasts to explore the technology, they released all network coins into smart contracts for public mining. Mining commenced on 6 July 2020, coinciding with the release of mining guidelines and miner code. Initially, the blockchain was a testnet with tokens intended solely for testing purposes. Remarkably, within a year, a vibrant Toncoin mining sector had emerged.
Distribution of Tokens:
Ultimately, all tokens were distributed to thousands of miners without an ICO, IEO, or any token sale, mirroring Bitcoin's organic growth. The earliest miners faced minimal competition. Their contributions helped establish the TON Foundation and the TON Reserve, both vital to the network's development. With the depletion of the PoW Giver smart contracts, traditional TON mining ended. However, the TonWhales team introduced the Infinity TON Mining Pool, a novel solution for those wishing to continue mining Toncoin.
Future Prospects:
Following its initial coin distribution, TON transitioned to a new phase by adding more validators and increasing the coins used for validation, thereby enhancing network stability and security. As a proof-of-stake blockchain, TON depends on validators operating special nodes to maintain the network. Validators engage in network operations and earn new Toncoin as a reward, with about 0.6% of the total supply generated annually. Anyone with a powerful server and adequate Toncoin for staking can become a validator. The TON Ecosystem includes nominators, who lend their Toncoin to validators for staking and share in the rewards.
Overview of TON’s Decentralisation
From its beginning, modifications or updates to the network necessitate the consent of 66% of the validators.
Any individual who has sufficient Toncoin to stake and the necessary hardware can become a validator. There is no central control or master key — all authority is held by the community.
Becoming a Validator on TON
TON operates on a Proof of Stake consensus model, ensuring network security and stability through a group of validators. Anyone can become a validator, contributing to network security and earning Toncoin rewards in the process.
Roles of Validators
Validators are responsible for verifying all user transactions. If consensus is reached among them that a transaction is valid, it gets included in the blockchain; invalid transactions are rejected.
Rewards for Validators
Validators earn rewards in two ways as detailed by the table below:As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
Requirements to Earn Rewards
To qualify for rewards, a validator must:
- Win Validator election to validation cycle:
- Successfully submit an election — you need a minimum stake of 300k TON.
- Win the election with at least 400k TON and not be excluded because the maximum validator quantity for the election is reached.
- Successfully validate blocks throughout the entire Validation Cycle.
Penalties
Validators face penalties for two types of misconduct: idle and malicious behaviour, both of which are strictly prohibited and may lead to fines.
How to Become a Validator
To become a validator, individuals need access to high-performance hardware and a reliable network, with at least 300,000 TON as a stake. Validators commit their Toncoin for a specified term, which is refunded with interest after the validation round is complete.
Validators can manage their nodes using MyTonCtrl, a user-friendly open-source tool available both as a Command-Line Interface and a Web User Interface.
Toncoin: Overview of the Cryptocurrency's Function and Market Position
Toncoin is the native cryptocurrency of the TON network, utilised for a variety of network operations including transactions and the facilitation of activities on games or collectibles built on the platform. It serves multiple functions within the TON ecosystem and is involved in different facets of decentralised finance and blockchain activities.
Market Data
Toncoin can be purchased on cryptocurrency exchanges or directly within digital wallets, allowing users to choose the most convenient option. The latest data indicates that Toncoin is priced at $5.80, with a minor decrease of 0.63% in the last 24 hours. It is ranked ninth in global cryptocurrency standings with a market capitalization of $20.13 billion and a trading volume of $156.51 million.
Decentralised Finance and Usage
Toncoin is used for enhancing network security through contributions to nominator pools. It facilitates currency exchanges on decentralised platforms and enables cross-chain transfers from networks like Ethereum to TON. Toncoin also allows for the acceptance of global payments with low transaction fees and supports the creation of new cryptocurrencies through token minting.
Practical Applications and Future Outlook
In terms of practical applications, Toncoin handles transaction processing fees for smart contracts and powers payment services on applications running on the TON platform. It supports network security through staking and is used in cross-chain transaction fees. Toncoin also plays a role in TON's on-chain governance and is utilised for payments in blockchain-based domain name services. Looking ahead, Toncoin is expected to be used for payments related to TON Proxy and decentralised data storage, highlighting its utility in supporting and maintaining blockchain infrastructure.
Ton Roadmaps:
Ton Key Metrics Overview:
The TON blockchain has demonstrated significant expansion and activity across several domains, as evidenced by recent data. The total supply of TON tokens has continued to grow steadily, reaching over 5.1 billion. Concurrently, the daily fees collected on the network have shown fluctuations, with recent data recording around 11,211 TON.
Although daily trading volumes have seen some volatility, they remain substantial. The total TON coins locked in liquid staking protocols have reached nearly 50 million, suggesting a strong commitment from network participants to secure and stabilise the blockchain.
Activity in the TON network's wallet ecosystem is robust, with over 3.6 million on-chain activated wallets and a dramatic increase in daily wallet activations, which recently peaked at 23,832. The number of active wallets continues to surge, highlighting a growing user base engaged in daily transactions, which recently surpassed 4 million on some days.
Over 3.4 million NFTs have been minted. Furthermore, the platform’s Jetton wallets, which facilitate token transfers and transactions, have grown to over 2.7 million. Additionally, the volume of TON DNS trading, representing decentralised domain name operations, has reached significant volumes, emphasising the blockchain's utility beyond simple asset transfers.
Ton Memelandia Overview
Another interesting development pertains to Memelandia. Ton Memelandia is an innovative initiative by the TON Foundation, designed as a cultural hub specifically for meme coins and community tokens. This platform aims to elevate the profile and utility of meme coins, which are often sidelined in mainstream cryptocurrency markets.
Key Features of Ton Memelandia:
Ranked TOL (Ton Online Leaderboard): The platform includes a real-time leaderboard that evaluates and ranks meme coin and community token projects. This ranking is based on a variety of metrics such as transaction volume, user engagement, total value locked, number of holders and distribution of airdrops. The leaderboard is designed to promote competition and innovation among participants.
Marketing and Community Support: Memelandia offers extensive marketing support, utilising TON's resources for targeted campaigns and strategic partnerships to enhance the visibility and credibility of the tokens. This support extends to integration with Telegram, providing projects with direct access to its vast user base, which facilitates engagement and potential support.
Incentives and Rewards: The initiative is part of The Open League, a long-term incentive program that provides financial rewards to encourage growth and engagement within the meme coin communities. This includes financial incentives and rewards for projects that show significant growth and engagement.
Simplified Token Creation and Promotion: The platform enables users to easily create their meme coins using no-code solutions and open-source templates provided by TON. It supports projects throughout their lifecycle, from fair launches and presales to airdrops, helping to build community and promote wider adoption.
Overall, Memelandia represents a strategic effort by the TON Foundation to embrace and promote the distinctive culture of meme coins within the cryptocurrency landscape, aiming to provide these projects with the necessary tools and visibility needed to succeed in a competitive market.
For a fully comprehensive overview of the projects, take a look at the chart below. Chosen groups vie for accolades in The Open League's Memecoin and Community Token contest. It is worth noting, this roster does not constitute financial guidance or an endorsement;
Conclusion
Engineered for cross-chain interoperability and high scalability, TON is capable of supporting a large volume of transactions per second, catering to a potentially extensive user base in the future.
The TON Blockchain, the central component of this platform, integrates various elements of TON’s infrastructure, enhancing the overall ecosystem. Initially developed by the Telegram team, TON has transitioned to the open-source community and operates on a Proof of Stake basis. This structure addresses issues such as speed, cost and scalability that are prevalent in other platforms like Ethereum, by utilising advanced sharding techniques.
Educational outreach and community engagement are also significant aspects of TON. The platform serves as a hub for learning, with the TON Society publishing content from developers and hosting events such as Smart Challenges and Hack-a-TONx to promote development within the network. For developers, TON provides detailed guides and educational courses for creating smart contracts and decentralised applications.
TON's governance model requires a consensus of 66% of validators for network updates, ensuring that any changes have widespread support within the community. This democratic model allows anyone with adequate resources and Toncoin to participate as a validator, contributing to a decentralised governance structure.
As TON develops further, it emphasises reinforcing its network and infrastructure to better support decentralised technologies. With a commitment to strengthening platform capabilities and fostering a community-driven development approach, TON is strategically enhancing its system to support the needs of a decentralised internet. This focus includes increasing the reliability and efficiency of the network, ensuring it can adequately serve a growing number of users while maintaining transparency and decentralisation in its governance processes.
Valour, a leading digital asset ETP issuer, recently announced the launch of a TON ETP tracking the price of Toncoin and thereby providing investors access to this project through their traditional stock trading accounts. The Valour Toncoin ETP is available for trading on Nordic Growth Market, Nordnet, and Avanza.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
TON Introduction
The Open Network (TON) is a decentralised and open internet platform that includes various components such as the TON Blockchain, TON DNS, TON Storage and TON Sites. TON is dedicated to achieving extensive cross-chain interoperability within a highly scalable and secure framework. It is engineered to handle millions of transactions per second (TPS) and aims to serve hundreds of millions of users in the future. At its core, the TON Blockchain acts as the foundational protocol, integrating TON's infrastructure and forming the broader TON Ecosystem.
Originally developed by the Telegram team, TON is a layer-1 PoS blockchain that has been transitioned to the open-source community. It addresses critical issues like speed, cost and scalability found in platforms like Ethereum, through advanced dynamic and infinite sharding techniques. TON's objective is to transform the existing internet by integrating multiple blockchain-based components, including DNS, decentralised storage and websites.
TON seems to hold a distinct advantage over other networks due to its association with the secure messaging application Telegram, the original developer. Leveraging Telegram's massive existing user base of over 930 million monthly active users provides TON with a significant head start in adoption. Unlike many blockchain projects that seek to build a community from scratch, TON inherits a vast and growing network of users already familiar with the Telegram platform. This established user base not only could accelerate TON's adoption but also fosters a community deeply integrated with the platform's ethos. Telegram's seamless integration of TON into its messaging ecosystem may further strengthen their position, offering users a familiar interface to access blockchain-based services effortlessly. This symbiotic relationship between Telegram and TON makes this project a particularly interesting one to watch.
The TON Blockchain is designed as a distributed supercomputer, or "superserver," and offers a wide range of products and services intended to support the evolution of a decentralised internet. This comprehensive approach positions TON as a pivotal player in the development of a new decentralised vision for the internet.
TON also serves as a hub for learning and documentation, with the TON Society publishing blog posts by key community developers on fundamental topics. The platform hosts official online hackathons known as Smart Challenges for developers with some TON knowledge and supports local Hack-a-TONx events to engage developer communities worldwide.
For developers, TON offers a detailed guide to the TON Blockchain, an educational course designed to teach developers how to create smart contracts and decentralised applications on the TON Blockchain. This course includes nine modules covering the basics of the TON Blockchain, the FunC programming language and the TON Virtual Machine (TVM).
History of Mining:
Toncoin was allocated through PoW Givers, smart contracts that were each assigned a specific amount of Toncoin.
The Era of Toncoin Mining Concluded:
In June 2020, nearly all Toncoin tokens (98.55% of the total supply) were released for mining through Giver smart contracts, enabling public participation until 28 June 2022. Around 200,000 TON were mined daily. After two years, the mining of the last Toncoin marked the end of TON’s initial distribution phase.
A Revolutionary Blockchain Consensus:
Mining on the TON Blockchain, which employed a proof-of-stake consensus, diverged from traditional systems like Bitcoin that use proof-of-work. This older method is crucial for sustaining the network, creating blocks and distributing coins. In contrast, TON relies on an alternative mechanism to maintain functionality and distribute new coins. Mining remains the sole method for acquiring new coins, promoting equitable distribution among network participants.
The Advent of Proof-of-Stake:
Next-generation blockchains utilise a proof-of-stake system, eliminating the need for mining. This evolution enhances transaction speed and reduces costs. However, in PoS systems, developers initially issue tokens and control their sale and distribution, a method that contrasts with the decentralised ethos of blockchain technology. TON Blockchain was the first to combine these consensus methods, operating on a proof-of-stake basis to ensure efficiency and reduced costs. Initially, however, tokens were distributed through mining, offering a decentralised and equitable approach. This model, known as initial proof-of-work, presents clear advantages and is likely to influence future digital asset projects.
An Unplanned Start:
Mining on TON began unexpectedly. In 2020, following a legal settlement with the U.S. Securities and Exchange Commission, the Telegram team was compelled to discontinue their work on The Open Network. Opting to withdraw from the project while allowing enthusiasts to explore the technology, they released all network coins into smart contracts for public mining. Mining commenced on 6 July 2020, coinciding with the release of mining guidelines and miner code. Initially, the blockchain was a testnet with tokens intended solely for testing purposes. Remarkably, within a year, a vibrant Toncoin mining sector had emerged.
Distribution of Tokens:
Ultimately, all tokens were distributed to thousands of miners without an ICO, IEO, or any token sale, mirroring Bitcoin's organic growth. The earliest miners faced minimal competition. Their contributions helped establish the TON Foundation and the TON Reserve, both vital to the network's development. With the depletion of the PoW Giver smart contracts, traditional TON mining ended. However, the TonWhales team introduced the Infinity TON Mining Pool, a novel solution for those wishing to continue mining Toncoin.
Future Prospects:
Following its initial coin distribution, TON transitioned to a new phase by adding more validators and increasing the coins used for validation, thereby enhancing network stability and security. As a proof-of-stake blockchain, TON depends on validators operating special nodes to maintain the network. Validators engage in network operations and earn new Toncoin as a reward, with about 0.6% of the total supply generated annually. Anyone with a powerful server and adequate Toncoin for staking can become a validator. The TON Ecosystem includes nominators, who lend their Toncoin to validators for staking and share in the rewards.
Overview of TON’s Decentralisation
From its beginning, modifications or updates to the network necessitate the consent of 66% of the validators.
Any individual who has sufficient Toncoin to stake and the necessary hardware can become a validator. There is no central control or master key — all authority is held by the community.
Becoming a Validator on TON
TON operates on a Proof of Stake consensus model, ensuring network security and stability through a group of validators. Anyone can become a validator, contributing to network security and earning Toncoin rewards in the process.
Roles of Validators
Validators are responsible for verifying all user transactions. If consensus is reached among them that a transaction is valid, it gets included in the blockchain; invalid transactions are rejected.
Rewards for Validators
Validators earn rewards in two ways as detailed by the table below:As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
As of April 2023, a validator node with an average stake generates roughly 120 Toncoin per day.
Requirements to Earn Rewards
To qualify for rewards, a validator must:
- Win Validator election to validation cycle:
- Successfully submit an election — you need a minimum stake of 300k TON.
- Win the election with at least 400k TON and not be excluded because the maximum validator quantity for the election is reached.
- Successfully validate blocks throughout the entire Validation Cycle.
Penalties
Validators face penalties for two types of misconduct: idle and malicious behaviour, both of which are strictly prohibited and may lead to fines.
How to Become a Validator
To become a validator, individuals need access to high-performance hardware and a reliable network, with at least 300,000 TON as a stake. Validators commit their Toncoin for a specified term, which is refunded with interest after the validation round is complete.
Validators can manage their nodes using MyTonCtrl, a user-friendly open-source tool available both as a Command-Line Interface and a Web User Interface.
Toncoin: Overview of the Cryptocurrency's Function and Market Position
Toncoin is the native cryptocurrency of the TON network, utilised for a variety of network operations including transactions and the facilitation of activities on games or collectibles built on the platform. It serves multiple functions within the TON ecosystem and is involved in different facets of decentralised finance and blockchain activities.
Market Data
Toncoin can be purchased on cryptocurrency exchanges or directly within digital wallets, allowing users to choose the most convenient option. The latest data indicates that Toncoin is priced at $5.80, with a minor decrease of 0.63% in the last 24 hours. It is ranked ninth in global cryptocurrency standings with a market capitalization of $20.13 billion and a trading volume of $156.51 million.
Decentralised Finance and Usage
Toncoin is used for enhancing network security through contributions to nominator pools. It facilitates currency exchanges on decentralised platforms and enables cross-chain transfers from networks like Ethereum to TON. Toncoin also allows for the acceptance of global payments with low transaction fees and supports the creation of new cryptocurrencies through token minting.
Practical Applications and Future Outlook
In terms of practical applications, Toncoin handles transaction processing fees for smart contracts and powers payment services on applications running on the TON platform. It supports network security through staking and is used in cross-chain transaction fees. Toncoin also plays a role in TON's on-chain governance and is utilised for payments in blockchain-based domain name services. Looking ahead, Toncoin is expected to be used for payments related to TON Proxy and decentralised data storage, highlighting its utility in supporting and maintaining blockchain infrastructure.
Ton Roadmaps:
Ton Key Metrics Overview:
The TON blockchain has demonstrated significant expansion and activity across several domains, as evidenced by recent data. The total supply of TON tokens has continued to grow steadily, reaching over 5.1 billion. Concurrently, the daily fees collected on the network have shown fluctuations, with recent data recording around 11,211 TON.
Although daily trading volumes have seen some volatility, they remain substantial. The total TON coins locked in liquid staking protocols have reached nearly 50 million, suggesting a strong commitment from network participants to secure and stabilise the blockchain.
Activity in the TON network's wallet ecosystem is robust, with over 3.6 million on-chain activated wallets and a dramatic increase in daily wallet activations, which recently peaked at 23,832. The number of active wallets continues to surge, highlighting a growing user base engaged in daily transactions, which recently surpassed 4 million on some days.
Over 3.4 million NFTs have been minted. Furthermore, the platform’s Jetton wallets, which facilitate token transfers and transactions, have grown to over 2.7 million. Additionally, the volume of TON DNS trading, representing decentralised domain name operations, has reached significant volumes, emphasising the blockchain's utility beyond simple asset transfers.
Ton Memelandia Overview
Another interesting development pertains to Memelandia. Ton Memelandia is an innovative initiative by the TON Foundation, designed as a cultural hub specifically for meme coins and community tokens. This platform aims to elevate the profile and utility of meme coins, which are often sidelined in mainstream cryptocurrency markets.
Key Features of Ton Memelandia:
Ranked TOL (Ton Online Leaderboard): The platform includes a real-time leaderboard that evaluates and ranks meme coin and community token projects. This ranking is based on a variety of metrics such as transaction volume, user engagement, total value locked, number of holders and distribution of airdrops. The leaderboard is designed to promote competition and innovation among participants.
Marketing and Community Support: Memelandia offers extensive marketing support, utilising TON's resources for targeted campaigns and strategic partnerships to enhance the visibility and credibility of the tokens. This support extends to integration with Telegram, providing projects with direct access to its vast user base, which facilitates engagement and potential support.
Incentives and Rewards: The initiative is part of The Open League, a long-term incentive program that provides financial rewards to encourage growth and engagement within the meme coin communities. This includes financial incentives and rewards for projects that show significant growth and engagement.
Simplified Token Creation and Promotion: The platform enables users to easily create their meme coins using no-code solutions and open-source templates provided by TON. It supports projects throughout their lifecycle, from fair launches and presales to airdrops, helping to build community and promote wider adoption.
Overall, Memelandia represents a strategic effort by the TON Foundation to embrace and promote the distinctive culture of meme coins within the cryptocurrency landscape, aiming to provide these projects with the necessary tools and visibility needed to succeed in a competitive market.
For a fully comprehensive overview of the projects, take a look at the chart below. Chosen groups vie for accolades in The Open League's Memecoin and Community Token contest. It is worth noting, this roster does not constitute financial guidance or an endorsement;
Conclusion
Engineered for cross-chain interoperability and high scalability, TON is capable of supporting a large volume of transactions per second, catering to a potentially extensive user base in the future.
The TON Blockchain, the central component of this platform, integrates various elements of TON’s infrastructure, enhancing the overall ecosystem. Initially developed by the Telegram team, TON has transitioned to the open-source community and operates on a Proof of Stake basis. This structure addresses issues such as speed, cost and scalability that are prevalent in other platforms like Ethereum, by utilising advanced sharding techniques.
Educational outreach and community engagement are also significant aspects of TON. The platform serves as a hub for learning, with the TON Society publishing content from developers and hosting events such as Smart Challenges and Hack-a-TONx to promote development within the network. For developers, TON provides detailed guides and educational courses for creating smart contracts and decentralised applications.
TON's governance model requires a consensus of 66% of validators for network updates, ensuring that any changes have widespread support within the community. This democratic model allows anyone with adequate resources and Toncoin to participate as a validator, contributing to a decentralised governance structure.
As TON develops further, it emphasises reinforcing its network and infrastructure to better support decentralised technologies. With a commitment to strengthening platform capabilities and fostering a community-driven development approach, TON is strategically enhancing its system to support the needs of a decentralised internet. This focus includes increasing the reliability and efficiency of the network, ensuring it can adequately serve a growing number of users while maintaining transparency and decentralisation in its governance processes.
Valour, a leading digital asset ETP issuer, recently announced the launch of a TON ETP tracking the price of Toncoin and thereby providing investors access to this project through their traditional stock trading accounts. The Valour Toncoin ETP is available for trading on Nordic Growth Market, Nordnet, and Avanza.
Disclaimer: This research report is exactly that — a research report. It is not intended to serve as financial advice, nor should you blindly assume that any of the information is accurate without confirming through your own research. Bitcoin, cryptocurrencies, and other digital assets are incredibly risky and nothing in this report should be considered an endorsement to buy or sell any asset. Never invest more than you are willing to lose and understand the risk that you are taking. Do your own research. All information in this report is for educational purposes only and should not be the basis for any investment decisions that you make.
