For a token that is currently ranked in the top 10, I still feel like most people don’t understand what’s going on with this blockchain.

Pantera, the oldest fund in the cryptocurrency space, recently announced that they had made their largest investment ever in TON.

This article will examine the genesis story of the TON ecosystem, the significance of current indicators, and the opportunities for the ecosystem.

1. Creation Story

The story of TON began in 2017, when the Durov brothers, founders of Telegram, began exploring blockchain solutions for their business. But since they could not find any L1 blockchain that could support Telegram's 1 billion-level user base, they challenged the status quo and designed their own L1: Telegram Open Network, or TON (later renamed "The Open Network").

On December 3, 2017, the team released the TON whitepaper, and a few weeks later, they launched the largest closed ICO ever, raising $1.7 billion by selling TON tokens (called "Grams"). Now with all that money, there was only one thing left to do: build. They did just that, and in 2019, they released the first two testnets and made the code open source.

However, they ran into trouble with the SEC as they were accused of conducting an unregistered securities offering in their ICO. This delayed the launch of the TON token until the legal issues were resolved. Telegram was forced to return ICO funds to investors, pay an $18.5 million fine, and stop supporting TON in 2020. This is how TON was renamed "The Open Network."

But this did not lead to the demise of this OG blockchain, and another entity - TONLabs - decided to continue the project independently.

2. Rebirth of TON

Although all these regulatory issues have brought a lot of obstacles to TON, the team did not stop providing services, and the discussion around TON only became lively recently when Telegram officially announced its cooperation with the blockchain again in September 2023. From that moment on, the momentum began to pick up, and TON climbed to the ninth largest crypto project with a current FDV of about $25 billion.

(1) Overview of the technology stack

The Open Network (TON) protocol consists of different components. Mainly: TON Blockchain, TON DNS, TON Storage and TON Payment. Let's take a quick look at each component:

TON blockchain

TON aims to be a blockchain in the blockchain. It is an L1 Proof-of-Stake (PoS) blockchain built for high performance and scalability, distributing workloads and interactions between accounts through its dynamic sharding mechanism. This ensures that as the scale expands, the network will be able to process millions of Turing-complete smart contract transactions per second to adapt to the development requirements of the next generation of the Internet.

　　TONDNS

TONDNS (Domain Name System) is a service that assigns human-readable domain names to accounts, smart contracts, services, and network nodes. This is similar to website domain names on the Internet, except that it is on a decentralized blockchain. This brings more privacy and security to domain name owners, and also facilitates interaction between blockchain smart contracts and Internet resources, and vice versa. Currently, more than 70,000 DNSs have been sold, and the momentum is still rising strongly.

TON storage

Data is the lifeblood of the Internet. Every person and every service needs to store more and more data. While the first iterations of data storage took place on centralized servers, a strong case is made that a fully distributed storage system on a decentralized network makes perfect sense. This is exactly why TON Storage was developed - a universal technology for storing any file in a decentralized, secure, and private way on the TON network.

TON Payment

TON Payments is a micropayment channel platform. It allows instant payments without submitting all transactions to the blockchain, paying associated fees and waiting for block confirmations. This feature can be used in APIs, off-chain apps or games.

(2) A hopeful network status

From a high-level perspective, the value of a blockchain infrastructure is directly related to the strength of its network. Without participants, there is no network, and without a network, the blockchain has no value. Therefore, the biggest challenge facing a new blockchain project is to overcome this "cold start" problem. In other words, how to attract enough contributors and users to make the network intrinsically useful and self-sufficient. In this regard, the early story of the Internet shows that even small frictions can hinder the adoption of a particular network.

This is exactly what makes TON so exciting - it avoids this "cold start" problem by working directly with Telegram. With over 900 million monthly active users, Telegram is the perfect funnel for the TON blockchain. This means they don't have to chase users, users will come to them in a seamless way. That's how important this is.

So, while everyone is paying attention to which chain between Ethereum and Solana will be the first to break 1 billion users, TON seems to be a quiet dark horse and has become a truly strong competitor with everything it needs to become one of the largest blockchain networks: a strong Web3 spirit, innovative technology, and large-scale distribution.

Active wallet

TON has experienced tremendous growth over the past year, and we noticed that the number of monthly active wallets has been on the rise, up 1900% year-over-year.

　　TVL

The total locked value (TVL) is also showing great momentum. While its TVL is still relatively low compared to other major blockchains, it has grown by more than 1,200% year-to-date, with TVL reaching approximately $180 million. With all development happening on-chain, there is still more room for TVL to grow.

Trading volume

We also noticed a huge change in transaction volume since the beginning of March 2024 when it started to surge. The chain seems to have gone from dormant to a super active chain. A true rebirth.

(3) Native stablecoin integration

TON's final killer feature is the recent deployment of the largest crypto stablecoin USDT in its blockchain and Telegram wallet. This enables hundreds of millions of Telegram users to send and receive stablecoins directly on the Telegram app in a cheap, simple, fast and secure way.

This is an interesting integration with real potential for global adoption, especially in developing countries where proper banking services are often not available. As such, this is another big step forward for cryptocurrencies and peer-to-peer currencies.

(4) “Wallet Profits” Activity

To kick off this new integration, the TON team has launched an event where users can earn up to 50% APY (Annual Percentage Yield) by storing USDT in their Telegram wallets. The total size of the prize pool is $30 million, making it an extremely attractive opportunity, but it won’t last long.

It’s easy to participate. Users simply deposit USDT (capped at $3,000) into a bonus account in their Telegram wallet to earn 50% APY in the first two weeks and then 25% APY in the next two weeks.

You can use layerswap to bridge some USDT from Solana to TON. The bridging process takes a few minutes.

Layerswap has a Refuel feature where you can get a small portion of TON to pay for your initial transaction.

3. Ecosystem Incentives - TheOpenLeague

The TON Foundation recently announced a new incentive program, “The Open League”, a competition designed to help users, teams, and traders, distributing 30 million TON tokens to its community from April to July. At the time of writing, 30 million TON tokens means more than $150 million in rewards. Prior to this, we held the “The Open League Pilot” competition, which distributed 1 million TON rewards and created all-time highs (ATH) in all key growth indicators. And this new season, with more than 30 prizes, may be one of the biggest catalysts for TON.

(1) Operation

The Open League is simple: TON projects compete every month to win huge prizes, while TON chain users can earn high rewards through their activities. The competition is open to everyone, from crypto newcomers to the most experienced veterans, providing users with huge profit potential.

The competition is divided into the following 4 categories:

Alliance

This is a comprehensive KPI competition where Web3 projects compete in two different leagues (the Big League and the Minor League) to try to win rewards. At the end of each season, the two best performing projects in the Minor League will be promoted to the Big League, while the two worst performing projects in the Big League will be relegated to the Minor League. All projects on TON can compete to enter the Minor League by gaining strong attention and strong community support.

Coinage

"TheOpenLeague" encourages projects to create their own incentive mechanisms and referral programs, giving every user the opportunity to earn free tokens.

Missions and Airdrops

The tasks introduce the on-chain usage of the TON project step by step. There are many tasks in CommunityBot, but more task activities will be listed on TONSociety. By completing these tasks, you can earn soul-bound tokens, which can bring many benefits in the future.

Liquidity pool and boost

TheOpenLeague has introduced a boost mechanism for liquidity pools. This means that users will earn additional TON in addition to earning rewards from liquidity pool fees. The Boost pool can be found through TheOpenLeagueMiniApp.

(2) How to join TheOpenLeague

Step 1: First, you need to create a wallet that supports TON on Telegram to participate in the ecosystem.

I think it's easiest and least hassle to use Wallet since it's embedded in Telegram, but Tonkeeper seems pretty solid and has a great app discovery page if you want an alternative.

Step 2: Try some apps to get free ecosystem tokens. I tried the following two apps:

Catizen - This is a hit airdrop game with seemingly millions of users. The initial game is simple, but Catizen is not just a game, it is a platform designed to continuously grow together with the player community.

Pixels – ThePixelsBattle is a competition between Telegram communities for space on a huge canvas of 1 million pixels (1024p×1024p), any Telegram community, whether it is a chat or a channel, can participate in the competition. Every Telegram user has the opportunity to form their own team based on any channel or chat of their choice.

Step 3: Next, try out TheOpenLeague’s participation project.

They are games, DEX, NFT protocols, meme coins, liquidity staking services, and many other available apps.

Step 4: Use the OpenLeague robot to provide liquidity to the project and earn more Toncoin rewards ($40 million distribution).

4. Conclusion

TON has overcome many technical and regulatory obstacles to get to where it is today.

The TON chain and ecosystem are starting to really attract the attention of users, developers, and institutional investors. They have a unique advantage in being able to convert 900 million Telegram users into the ecosystem. This alone is enough for us to take TON seriously.

The content of the article is for information reference only and is not intended as actual investment advice.


What do you think about TON? Leave your thoughts in the comment section.