Toncoin is the cryptocurrency at the heart of the Telegram Open Network (TON), a project initially started by the messaging platform Telegram in 2018. This digital currency was designed to facilitate various activities within the TON network.
Key Features of TON and Toncoin:
Proof of Stake and Sharding: TON employs a sharded, proof-of-stake consensus mechanism, enabling parallel transaction processing and faster transaction speeds. This means that multiple transactions can occur simultaneously, making the network efficient.
Initial Hype and ICO: When TON was introduced, it created quite a buzz. In 2018, it conducted an Initial Coin Offering (ICO) and raised an astonishing $1.7 billion. While this was the second-largest ICO in history, it later faced regulatory challenges.
Regulatory Troubles: The United States Securities and Exchange Commission (SEC) intervened in the TON project, considering Telegram’s offering of Gram (the project’s currency) as an unregistered distribution of securities. Despite efforts to contest this ruling, Telegram eventually abandoned the project and began refunding investors.
Community Revival: The TON code was open source and available on GitHub, allowing the community to continue its development. Anatoliy Makosov and Kirill Emelianenko, among others, played crucial roles in reviving and developing the network.
The Open Network: The project was renamed The Open Network, but Toncoin remained as its native cryptocurrency.
How Toncoin Works:
Toncoin serves various purposes within the TON network:
1. Network Operations: Toncoin is used for network-related activities.
2. Transactions: It facilitates peer-to-peer transactions.
3. Games and Collectibles: Toncoin can be used in games and collectible items built on the TON platform.
4. Telegram Mini Apps: Toncoin is integral to Telegram Mini apps, allowing users to enjoy in-app experiences.
Services and Utility:
Toncoin also powers several services on the TON network, including TON Storage, TON Proxy (a decentralized VPN service), and the TON naming system. Additionally, it has its own app store with over 500 deployed apps that utilize Toncoin for transactions.
Toncoin Tokenomics & Governance
The maximum supply of Toncoin is 5 billion, with 3.4 billion currently in circulation. Validators receive Toncoin rewards for maintaining the network. The Foundation has set an annual inflation rate of 0.6% for Toncoin.
The TON network operates as a decentralized autonomous organization (DAO). Users who hold Toncoin can participate in the decision-making process and cast votes on proposed changes to the blockchain and ecosystem.
Development and Roadmap:
As of Q2 2023, the TON network has experienced increased developer activity, with a 102% year-on-year rise in development. The developer count reached 9,134 by the end of June. This growth reflects TON’s strategy of leveraging the Telegram community to attract projects and users.
One example of a project that joined TON is Tap Fantasy, an MMORPG blockchain game. It made the switch to TON from Binance Chain in August 2023 to tap into the network’s integrations with Telegram’s massive user base of 700 million monthly active users.
Toncoin is a vital element of the TON network, offering utility in various network operations and services. Despite initial regulatory hurdles, the community’s resilience and continued development have kept the project alive and thriving. Toncoin’s future looks promising, especially with its active developer community and strategic partnerships.
