introduction
As a project that has performed well in the L1s track, Toncoin has always maintained its position in the top 20 of Crypto by market value. Although Toncoin quickly gained attention by relying on Telegram's applets and mini-games in the early stage, its excellent performance is its core competitiveness. Test data shows that Toncoin's TPS indicator has exceeded Solana, and Toncoin's performance is very outstanding.
In addition, it also has a traffic entrance from the Telegram platform with 900 million users. Coupled with the continuous strengthening of community consensus, Toncoin has broad development prospects in the future, and further development and breakthroughs are worth looking forward to in the future.
Basic information of the project
project team
Pavel Durov: Founder & CEO, also the CEO and founder of Telegram. Prior to Telegram, Pavel founded VK - the most popular social network in Russia and some other countries, with more than 100 million active users.
Inal Kardan: Head of Gaming at TON Foundation. Former co-founder and CTO of Meta0 and co-founder and CTO of Billy App.
Julian Tan: Head of TON’s DeFi ecosystem. Previously worked in business development at Binance, SEI ecosystem development partner, and graduated from the University of Queensland.
Jordan Dunne: Head of Telegram DeFi at TON Wallet. Former technical project manager at Google.
Financing:
Toncoin has raised seven rounds of funding, five of which did not disclose the amount, and two of which disclosed the amount, raising about $16 million.
Seed round: In April 2021, Runa Capital and RTP Global invested in this round with an amount of US$6 million. Runa Capital is a venture capital firm and RTP Global is an early-stage technology company.
Round A: In November 2022, DWF Labs invested US$10 million in this round.
The other five rounds were led by Mask Network, Mexc Ventures, Animoca Brands, Mirana Ventures, and Pantera Capital, respectively, and the investment amounts were not disclosed.
Although Toncoin's financing amount in seven rounds is only 16 million US dollars, as Toncoin is backed by Telegram, one of the world's top social apps, investors from all sides are very optimistic about its development prospects.
Development Strength
Toncoin was established in 2018 by founder Pavel Durov. The development of Toncoin has been very bumpy, and the key events in the development of the project are shown in the table:
time
Key Events
2018
Pavel Durov announces the launch of Toncoin
2018
Toncoin’s white paper released
2019
Toncoin released two testnets and made the relevant codes open source
2020
Telegram announced that it would abandon Toncoin due to SEC reasons, pay $18.5 million in settlement, and return $1.7 billion in investment funds
2020
Toncoin is accepted by the community and continues to develop, and a Foundation is established
2021
TVM and Toncoin 2.0 beta versions are now live
2021
Toncoin's mainnet is launched
2022
TON Foundation takes over Toncoin and receives funding support from DWF Labs
2022
Toncoin switched from the original POW network to the POS network
2022
TON is integrated into the Telegram app, introducing cryptocurrency payments for content creators
2022
Completed major network upgrade to improve security and performance, enabling fast, scalable and secure transaction processing
2023
Completed major network upgrade to improve security and performance
2024
Announced important strategic cooperation and reached cooperation with many well-known companies
Judging from the key events in the development of the Toncoin project, the project did face many obstacles and challenges during its development. However, when faced with difficulties, the Toncoin community was able to spontaneously stand up and continue to promote the construction and development of the project, which fully demonstrated the success of its community building and strong consensus cohesion.
In addition, in important milestone events such as the testnet launch, TVM deployment, and mainnet launch, Toncoin's technical development team was able to complete the established plans on time and with high quality, which reflects the outstanding capabilities and professionalism of its development team.
In summary, the Toncoin project has demonstrated the cohesion of the community and the execution of the technical team in its development process, laying a solid foundation for its continued growth in the future. These advantages have undoubtedly enhanced investors' confidence and expectations in Toncoin.
Operation Mode
As an L1s project, Toncoin adopts a hybrid consensus mechanism of PoS and BFT to protect the security of the chain. At the same time, Toncoin designs the structure of the main chain, working chain and shard chain. It relies on the main chain to achieve synchronization and coordination of the entire network and nodes to ensure the security of the network. Specific interaction matters are left to the working chain and shard chain to execute.
When performing specific tasks, the work chain is responsible for supporting the operation of smart contracts and Dapps, where each work chain has customized transaction types, smart contract functions and address formats. The entire network can have a total of up to 2∧32 work chains. The connection and interaction between each work chain is like each process of Arweave AO. They do not affect each other, but can also operate with each other through a unified message column format to maintain communication and data transmission between various work chains of Toncoin. When actually performing specific tasks, it is executed by the shard chain. The shard chain is a subdivision of the work chain. It is used to process transactions and data of the network. The entire network can have a total of up to 2∧60 shard chains. When the shard chain performs specific tasks, each work chain will process transactions of specific accounts and smart contracts, and can automatically merge or split according to the current load of the network.
The workflow of Toncoin is: to process requests from users or other processes through message passing. When the work chain is linked to a specific task, the specific task instructions will be handed over to the shard chain for processing. After the shard chain calculates the result, it will return the message to the work chain. The work chains can also communicate and transmit data according to the unified interoperability standards. Finally, the calculation results will be uploaded to the main chain for verification. The verified results will be stored on the main network so that when the lower-level work chain and shard chain need to read cross-chain messages, the latest status can be determined.
It is particularly noteworthy that in order to achieve optimal performance, Toncoin also uses three technologies: instant hypercube routing, self-healing vertical blockchain, and asynchronous calling of smart contracts to jointly achieve its excellent scalability.
In summary, Toncoin is an L1s public chain project that uses a hybrid consensus mechanism of PoS and BFT, and uses infinite sharding technology and asynchronous technology to increase the scalability of the chain. Hypercube routing ensures low-latency cross-chain interaction, and self-healing vertical blockchain improves the reliability and consistency of the system. These unique technologies ensure that it can maximize the efficiency of parallel computing when performing computing tasks, giving it better scalability than other public chains, thereby providing solid technical support for its subsequent operation of related mini-program projects.
Introduction to Toncoin's innovative technology
Instant Hypercube Routing
Traditional hypercube routing involves information transfer between three chains: communication between shard chains within the same working chain, shard chain communication between different working chains, and interconnection between the main chain and other working chains. Each chain is connected only to a shard with a hexadecimal number different from its shard identifier, thus forming a hypercube structure. The entire shard chain network constitutes a hypercube network with log16(N) routing lines. When the number of nodes is 4, the network can support millions of shard chains. Toncoin uses two information routing methods, slow routing and fast routing. In fast routing, Merkle proofs can be used directly to relay information without submitting it to the intermediate shard chain, thus avoiding additional delays. However, if the receipt is lost, the validator will not be punished, so these two routing methods will be carried out at the same time.
Toncoin uses a high-dimensional hypercube structure to complete message transmission between different shards in a short time. By building a multi-dimensional topology, the message delivery path is effectively shortened, the delay in cross-shard communication is reduced, and the efficiency of cross-shard information transmission and processing is greatly improved. This technological innovation not only ensures low latency for cross-chain interactions and transactions, but also helps meet applications with high real-time requirements. Toncoin's high-dimensional hypercube structure has significantly improved the performance of the blockchain system, providing strong support for fast and efficient cross-chain information transmission and processing.
Self-Healing Vertical Blockchain
On the Toncoin main chain, each block in the shard chain is actually regarded as a small blockchain, also called a vertical blockchain. If an incorrect block in the shard chain needs to be fixed, a new block will be submitted to the vertical blockchain. This new block can replace the invalid horizontal blockchain block, or describe the difference between the previous version of the block that needs to be changed. When the growth rate of the vertical blockchain exceeds the original blockchain, the original version can be replaced with the new version. This mechanism protects the stability and reliability of the shard chain and contributes to the operation of the entire Toncoin main chain.
Toncoin actually applies self-healing vertical blockchain technology, which can correct invalid blocks without forking to maintain the consistency and stability of the system. When an invalid block is detected, the mechanism can automatically correct it without complicated system rollbacks or forking operations, thereby reducing the complexity of network maintenance. This mechanism not only improves the reliability of the entire network, but also reduces potential security risks and ensures that the system can run continuously and stably. This self-healing ability enables the Toncoin blockchain system to cope with various abnormal situations.
Smart contract calls are asynchronous
In Toncoin, calls between smart contracts are asynchronous. This means that when a smart contract calls a method of another smart contract, it is not executed immediately, but processed on a future block. This design helps improve scalability because all transaction processing does not need to be completed in one block. However, asynchrony also increases the complexity of developing and maintaining applications on the Toncoin chain. Developers need to pay more attention to the order and timing of transaction execution to ensure that calls between smart contracts can be processed correctly.
Advantages compared with projects on the same track
As a high-performance L1s project, Toncoin's main competitors are high-performance public chains such as Ethereum, Solana, and Arweave AO.
Superior on-chain performance: Toncoin has fast block confirmation and transaction speeds, can support a large number of shards, and has higher inter-shard communication speeds than Ethereum. Compared with Ethereum, Toncoin can create a chain for each user wallet, through shard parallel computing and support for fast cross-shard communication, and TVM supports asynchronous computing, providing a theoretical basis for achieving high TPS. These unique features give Toncoin a competitive advantage in the blockchain field, providing users with an efficient, fast and secure transaction and communication environment.
Resource payment: In Toncoin, smart contracts need to pay for their own resource costs, that is, hold a certain number of TON tokens to perform operations such as computing, storage, and network transmission. This design mechanism can avoid users from directly incurring costs, but at the same time requires smart contracts to hold enough TON tokens to pay for execution costs. When the TON token balance of a smart contract is exhausted, the contract will be automatically deleted. This automatic cleanup mechanism helps to avoid data expansion on the blockchain. Therefore, the holder of the smart contract needs to ensure that the contract always has enough tokens to maintain normal operation to avoid the contract being deleted due to insufficient funds. This also prompts the holder of the smart contract to fully consider resource consumption and token management when designing the contract to ensure that the contract can operate stably in the long term.
Asynchronicity: In Toncoin, calls between smart contracts are executed asynchronously. This means that when a smart contract calls a method of another smart contract, it is not executed immediately, but processed on a later future block. Such a design can improve scalability because all transactions do not need to be processed in a single block. However, this also poses a challenge to maintaining transaction consistency and atomicity. For example, suppose contract A calls a method of contract B. This call will not be executed immediately, but on a future block after the transaction of contract A ends. In other words, the call of contract B may have been processed before the transaction of contract A is completed. Asynchronicity constitutes the core design of Toncoin, making it more scalable and flexible, but it also increases the complexity of development and maintenance.
Huge external traffic: Toncoin is a project founded and supported by Telegram. Although Telegram withdrew from the Toncoin project due to interference and obstruction from the SEC during its development, Telegram has been directing traffic to Toncoin. We all know that traffic is the key to success in both Web 2 and Web 3. Even if a project has excellent design, it will fail without traffic import. In Web 2, Telegram has billions of existing users, 900 million daily active users, and 2.5 million users are growing every day. It can be said that Telegram itself is a huge traffic password. Telegram has been continuously directing traffic to Toncoin and deploying various applets on its chain, which gives Toncoin an absolute advantage that other L1s projects do not have.
To sum up, as a project in the L1s track, Toncoin has superior performance, resource payment and asynchronous characteristics, which gives it a basic advantage in the competition with other public chains. At the same time, Toncoin has mastered the huge traffic password of Telegram, which makes Toncoin have an incomparable advantage in customer acquisition compared with other public chains, and Telegram diversion is also Toncoin's most critical core competitiveness.
Project Model
Business Model
The Toncoin economic model consists of three roles: POS miners, application developers, and blockchain application users.
POS miners: After staking TON tokens, Toncoin's verification nodes protect the security of the Toncoin network and store network data by complying with the hybrid consensus mechanism of PoS and BFT. In return for their protection of the network security and storage of network data, Toncoin will give the verification nodes TON tokens as rewards, and now Toncoin's newly added TON tokens are only issued in the form of node staking rewards, with an annualized APY of approximately 4.2%.
Application developers: As an L1s project, one of the keys to the success or failure of Toncoin is the prosperity of its own ecosystem. Therefore, Toncoin attaches great importance to its own ecological construction, providing developers with greater innovation space for the Toncoin ecosystem. At the same time, due to the resource payment characteristics of Toncoin, application developers must hold a certain number of TON tokens for a long time to ensure that their smart contracts will not be deleted because the TON token balance is 0.
Blockchain application users: The Gas fees paid by users on Toncoin are the main source of income for Toncoin.
From the above analysis, we can see that Toncoin’s revenue is:
Gas fees paid by application developers and blockchain application users
Token Model
According to the white paper, the initial total amount of TON is 5 billion. In terms of token distribution, the team initially owns 1.45% of the tokens, and the remaining 98.55% were mined by POW in the early stage. At present, the network consensus has changed from POW to POS. The total amount of TON is inflated at a rate of about 0.6% per year to reward POS miners. The total supply of TON tokens is currently 5,107,844,288.
In February 2023, the TON community passed a TON token economic model optimization proposal, which proposed a temporary freeze for 48 months of inactive mining wallets that have never been activated and have no outgoing transfers in their history. There are currently 312 inactive mining wallets, which hold a total of more than 2,077.53 million TON, accounting for about 41.55% of the total TON supply at the time. The current POS validator stake is 591.7 million TON. The circulating supply is 2,438,615,865 TON, with a circulation rate of 47.74%.
Through TON's token model, we can see that although all TON tokens have been circulated, due to its economic model optimization and token staking, the circulation rate of its tokens is not high, and the number of tokens held by the project party itself is also very low.
Token empowerment:
According to the white paper, the uses of TON in Toncoin are as follows:
Miner rewards: Nodes in the network are also miners. They abide by Toncoin's hybrid consensus mechanism of PoS and BFT to protect the security of the Toncoin network and store data, and they will receive TON tokens as rewards.
Transaction Fees: Users who conduct transactions on a block will have to pay transaction fees in TON tokens.
Staking: To become a validator node, you must stake TON tokens.
Purchase scenario: Through the Telegram wallet, users can use credit cards to directly purchase TON and use it to purchase virtual goods such as anonymous accounts.
TON's value judgment
According to the white paper, in June 2023, the TON community proposed a deflationary destruction mechanism for Toncoin, which will effectively destroy 50% of all transaction fees received by validators, including transaction and storage fees. In addition, Toncoin not only added a staking mechanism for TON tokens, but also in February 2023, the TON community passed a TON token economic model optimization proposal, which proposed to temporarily freeze inactive mining wallets for 48 months. These wallets have never been activated and have no outgoing transfers in their history.
Through these two proposals and the pledge mechanism, the circulation rate of TON tokens has been reduced from 100% to 47.74%, which can be said to be very effective. The current inflation rate in the Toncoin network is 0.6%, which is not very high. However, as Telegram continues to divert traffic to Toncoin, the number of active users on the chain has gradually increased. In addition, the cryptocurrency industry is in a bull market, which is likely to bring very active on-chain behavior in the future. In addition, due to the proposal of its deflationary destruction mechanism, it is likely that TON tokens will experience deflation in the future.
In summary, the TON token has been highly empowered by the Toncoin project and the community, and its value will surely rise in the future as the ecosystem becomes more popular.
Token Price Performance
https://www.coingecko.com/en/coins/toncoin
According to Coingecko statistics, TON's price has risen more than 6 times since May 2023 (the lowest point is $1.21 and the highest point is $8.17). TON's daily trading volume is $346 million, and its circulating market value is about $17.814 billion. Although the turnover rate is only 1.94%, which is relatively low, it is more because the current market environment is relatively sluggish, affected by the instability of the market and the macro factors, causing most users to wait and see.
TVL
https://defillama.com/chain/TON
As can be seen from the figure, Toncoin's TVL has been on an upward trend.
amount of users
https://dune.com/obchakevich/ton-erc20
From the figure, we can see that the number of Toncoin users has maintained a high growth rate.
Number of stakers
https://tonscan.org/stats
As can be seen from the figure, although the total network staking volume of TON has decreased since May, it has slowly recovered in the past month.
Ecological Projects
The TON ecosystem has developed rapidly in a few months. The biggest moat of the Toncoin project is that Telegram has attracted traffic to Toncoin, and Toncoin's mini-programs and mini-game projects have been deployed in Telegram. Toncoin has gained huge traffic through Telegram, which has promoted the rapid development of the TON ecosystem and made it one of the few hot spots in a market that originally did not have many hot spots.
The Toncoin project itself uses the asynchronous calling technology of smart contracts, which is destined to make the development of DeFi in the ecosystem difficult and slow. However, this also confirms from the side that Mass Adoption is the real prospect of Toncoin. At the beginning, TON was described as a decentralized application and service platform similar to WeChat, Google Play or App Store, or even a decentralized alternative to Visa and Mastercard payment processing services. This means that TON is not just a cryptocurrency, but also a powerful ecosystem that can provide users with a variety of services and applications. As more and more people start to use TON and more applications and services migrate to this platform, its potential will be fully released.
Therefore, Toncoin focuses its own ecosystem on plug-in projects similar to WeChat applets, and tries to seize the ecological market and share of meme coins from the Solana ecosystem.
https://ton.app/
Notcoin
Notcoin aims to engage users in a gamified way and will run on Telegram. Users can earn NOT tokens by clicking on the gold coin icon on the screen. This tap-to-earn game mechanism quickly attracted the attention of a large number of users and accumulated a large user base in a short period of time. Notcoin was developed by Open Builders, and the high scalability, security and efficiency of Toncoin provided an ideal platform for Notcoin. In addition, Notcoin introduced users to the Web3 community through its gamified mining mechanism, further promoting the application of blockchain technology. Since its debut in November 2023, Notcoin has gained widespread attention worldwide, attracting more than 35 million players and 6 million daily active users. Its viral spread model not only increases user engagement, but also promotes the popularization and development of the cryptocurrency field. Notcoin's success is attributed to its innovative gamification design. The specific gamification mining mechanism of the Notcoin project is mainly designed through repeated clicks. Users mine by continuously clicking on the screen to obtain token income. The simple and easy-to-understand click-to-earn mechanism has attracted a large number of non-cryptocurrency users to participate, reducing their learning costs for blockchain technology, thereby promoting the expansion and development of the cryptocurrency market. In addition, Notcoin is committed to building an open, fair and transparent gamification platform. The immutability and transparency of blockchain technology ensure the fairness and security of users' earnings in the game, further enhancing users' confidence in the Notcoin project. As an innovative cryptocurrency project, Notcoin has successfully attracted a large number of users' attention and participation through gamification design.
Hamster Kombat
Hamster Kombat is a Telegram-based click game that combines the functions of a crypto trading simulator. In the game, players play the role of the CEO of a cryptocurrency exchange, aiming to develop the exchange to unprecedented heights. Players can obtain virtual coins by continuously clicking on the hamster image. In addition to clicking to obtain virtual coins, the game also incorporates financial education elements, and players can accumulate wealth by clicking and upgrading the hamster team. The game design is simple and attractive, allowing players to quickly get started and immerse themselves in it. There are more than 100 million users worldwide, making it one of the most popular games on the market. Hamster Kombat is not only a casual entertainment game, but also cleverly integrates the concept of investment, providing players with a challenging and adventurous gaming environment. The game provides players with the opportunity to simulate cryptocurrency trading, allowing players to learn financial knowledge and investment skills in a relaxed and enjoyable gaming experience. By clicking and upgrading the hamster team, players can feel the fun and challenges of investment and cultivate their own financial management capabilities. Players can feel the fluctuations and challenges of the financial market in the game, and learn financial knowledge and investment skills in a relaxed and enjoyable gaming atmosphere. By continuously clicking and upgrading the hamster team, players can feel the fun and challenges of investment and cultivate their own financial management capabilities. The game also provides a variety of game content and challenges, allowing players to experience the fun and challenges of investment. Hamster Kombat combines leisure and entertainment, financial education and investment simulation to create a new gaming experience for players. By clicking and upgrading the hamster team, players can learn financial knowledge and investment skills in a relaxed and enjoyable gaming atmosphere, and experience the fun and challenges of investment. It is believed that as the game continues to grow, Hamster Kombat will attract more players to join and become a highly anticipated game product.
Tapswap
Tapswap is a Telegram-based click game, which belongs to the category of Tap to Earn. In the Telegram messaging app, players can get TAPS tokens in the game by clicking on the screen. The game quickly attracted a large number of users' attention and participation after its release on February 15, 2024. The gameplay of Tapswap is very simple. Players only need to click the large button in the center of the screen to get game coins. This direct and simple way of playing has attracted the participation of many players, making Tapswap quickly become a popular cryptocurrency game project. In addition to launching on Telegram, Tapswap also plans to launch on Toncoin to expand its influence. The application of blockchain technology will bring more possibilities to Tapswap and provide it with a wider development space in the field of cryptocurrency. Although it has not yet been listed on mainstream cryptocurrency exchanges, with the success of Notcoin, it can be expected that Tapswap will enter the market in the future. With the continuous development of the cryptocurrency industry, the high-profile game project Tapswap will attract more investors and players. Tapswap has become a highly watched cryptocurrency game project with its simple click mechanism and a wide user base.
Catizen
Catizen is a cat-themed game based on the TON ecosystem, combining the metaverse, GameFi, and AI technologies to provide a highly immersive and interactive experience. The project was developed by Pluto Studio, drawing on the experience of Tap Fantasy, a previously incubated TON ecosystem GameFi project.
The core concept of Catizen is to combine cats in the virtual world with the real world to provide players with a more realistic and rich gaming experience. By utilizing advanced metaverse technology, players can interact with virtual cats in the game and earn money through the GameFi mechanism. In addition, Catizen also uses advanced artificial intelligence technology to give virtual cats vivid and realistic behaviors and personalities, allowing players to establish a closer relationship with virtual cats.
As a game project based on the TON ecosystem, Catizen will make full use of the advantages of blockchain technology to ensure the security and transparency of game assets. Through blockchain technology, players can ensure the authenticity and credibility of their earnings and assets in the game, while also enjoying the efficient and low-cost trading experience brought by blockchain technology. In addition to being a game platform, Catizen is also committed to rescuing stray cats by cooperating with the community and breaking the boundaries between the virtual and real worlds. By cooperating with animal protection organizations, Catizen will carry out a series of activities to rescue stray cats in the real world and encourage players to participate. This combination of the virtual and real worlds can not only bring players a more meaningful and profound gaming experience, but also contribute to social welfare.
Currently, Catizen has entered the second phase of user expansion and is preparing to launch the LaunchPool model, where players can obtain in-game points $wCATI by staking game assets. This initiative aims to encourage players to actively participate in the game and inject new vitality into the development of the game ecosystem. At the same time, Catizen will continue to improve its community governance mechanism, encourage community members to participate in project decision-making, and jointly promote the healthy development of the Catizen ecosystem.
MOMO YOU
The MOMO AI project is an AI-driven gaming social growth platform based on the TON and Solana ecosystems. It aims to use the self-developed AI-agent system to provide users with rich gaming experience and social interaction functions.
MOMO AI players plant virtual trees in the game and manage and upgrade their trees by collecting points called "Kiwi". While planting virtual trees, they will receive a certain amount of game points. As points accumulate, players can upgrade the level of trees, thereby speeding up the output efficiency of Kiwi points. While playing the game, players are allowed to use AI agents to help players interact with the game through natural language, such as setting commands to automatically collect Kiwi points. AI not only responds to players' instructions, but also provides personalized game suggestions and tasks based on players' gaming habits and preferences. The Kiwi points earned by players through game activities can be exchanged for the native token $MTOS of the MOMO AI project, and by recommending new players and sharing game content, players can receive additional Kiwi points and token rewards, which encourages players to spread and promote the game.
Since the launch of MOMO AI, it has attracted 1 million natural users in just two months, with more than 700,000 monthly active users and more than 160,000 daily active users. This rapid growth shows the popularity and potential of MOMO AI in the market. The MOMO AI project will use artificial intelligence technology to provide users with rich gaming experience and social interaction functions. AI technology will empower the MOMO AI platform, giving it more intelligent functions and services, and bringing users a more personalized and high-quality gaming experience.
The development of the MOMO AI project is inseparable from the strategic cooperation with TON. Through cooperation with TON, MOMO AI will make full use of the performance advantages and ecological resources of the TON network to provide users with a more stable and efficient gaming experience. At the same time, MOMO AI will also inject new vitality and innovative power into the TON ecosystem and promote the sustainable development of the entire ecosystem.
future plan
On the project’s official website, a detailed plan for the future development of Toncoin has been made.
https://ton.org/en/roadmap
Project Risks
Toncoin's ecosystem developers use two editing languages, one is FUNC, which is difficult to use; the other is Fift, which is a low-level language and contains TVM and Fift assembly instructions, which is even more difficult. Because the development language is difficult and the TVM used is incompatible with EVM and SVM, most developers in the industry are used to using EVM and SVM languages, which brings certain development difficulties to the project party.
Although Toncoin can bring huge traffic with Telegram, it is foreseeable that Toncoin may face continuous risks based on the past SEC regulatory history. These risks may have a negative impact on its operations and future development. In addition, due to the close connection between TON and Telegram, any legal, public relations or economic issues involving Telegram may have a chain reaction on TON. This connection may affect investor confidence, user adoption, and the overall market's perception of TON.
Although the Toncoin community proposed to optimize the economic model of TON tokens and lock up 41% of the tokens for 2 years, and unlock them in February 2025. However, as time goes by, it is only 8 months away, and all tokens will be released after the expiration date, which means that the total amount of current circulating tokens in the market has suddenly increased by 1.21 times, which is bound to have a certain impact on the price of TON.
Although the Toncoin community has proposed a deflationary destruction mechanism that will effectively destroy 50% of all transaction fees received by validators, based on the current daily transaction volume, only about 500 TONs are destroyed every day, which is still insignificant in the face of the annual increase of more than 30 million TONs.
Summarize
Toncoin uses four technologies, namely, infinite sharding, instant hypercube routing, self-healing vertical blockchain and asynchronous calls of smart contracts, to achieve excellent scalability in the L1s project. Toncoin has superior performance, resource payment and asynchronous characteristics, which gives it an advantage in the competition with other public chains. At the same time, Toncoin has mastered the huge traffic password of Telegram, which makes Toncoin have an incomparable advantage in customer acquisition compared with other public chains, and Telegram diversion is also the most critical core competitiveness of Toncoin.
However, Toncoin's ecosystem developers are faced with two difficult editing languages, FUNC and Fift. Since TVM is incompatible with EVM and SVM, the EVM and SVM languages that most developers are accustomed to using, the project party may encounter certain development difficulties. Although Toncoin is backed by Telegram, past SEC regulatory history shows that Toncoin may face ongoing risks that will have a negative impact on its operations and future development. TON's close ties with Telegram may cause any issues involving Telegram to have a chain reaction on TON, affecting investor confidence and the overall market's view of TON. In addition, although the Toncoin community has proposed a token economic model optimization proposal and a deflationary destruction mechanism, it is still necessary to pay attention to the problem of negligible token unlocking and destruction to cope with the possible impact on TON prices.
In summary, the Toncoin project itself has a unique technical architecture that makes it a public chain that outperforms all the current public chains, giving it a certain advantage in the fiercely competitive L1s track. At the same time, it has the traffic support of Telegram, forming a moat that other public chains cannot reach. And the future planning is very innovative. If it can be fully realized, Toncoin will have an absolute technical advantage in the public chain track.
