What is Toncoin? Information about TON Coin

Telegram has become a popular global application, attracting a large number of users due to its high security and diverse features, especially in the cryptocurrency field. Did you know that the Telegram development team has developed TON Coin? So, what is Toncoin? Let’s explore in the following article!

What is Toncoin?

TON (The Open Network) is a Layer 1 blockchain using the Proof of Stake (PoS) consensus mechanism to enhance user experience by processing transactions quickly with low fees. The Telegram messaging app development team introduced TON in 2018 with the goal of achieving mass adoption to make cryptocurrency easily accessible and usable for everyone.

TON is a blockchain developed to create a unique Web3 platform, including DeFi, DApp, DAO, and many other applications. Currently, developers in the TON community are closely collaborating with the TON Foundation to build a powerful Web3 ecosystem to support over 700 million Telegram users globally.

Toncoin’s History

In 2018, the Telegram Open Network (TON), the predecessor of The Open Network, released the project’s whitepaper with the token GRAM. Initially, Telegram organized an ICO and raised up to $1.7 billion to fund this project. Since then, TON has quickly attracted significant attention from the crypto community.

However, in March 2020, as TON was preparing for the next ICO phase, the project was hit with an injunction from the U.S. Securities and Exchange Commission (SEC). The SEC alleged that TON violated securities regulations in the United States.

Subsequently, in May 2020, Pavel Durov, the founder of Telegram, announced that Telegram officially withdrew from the project and offered refund options to investors. The TON project was then transferred to two developers, Anatoliy Makosov and Kirill Emelyanenko, and renamed The Open Network.

Although no longer directly developing The Open Network, Telegram continues to support and integrate products of this blockchain into its application.

Toncoin’s Products

TON is developing a multi-product ecosystem, including:

• TON Blockchain: This is the core platform of the ecosystem, aiming to attract millions of users.
• TON Services:
  • TON Storage: Online information management service.
  • TON DNS: Identification system for accounts, smart contracts, applications, and nodes on the network.
  • TON Proxy: An anonymous network connection system for TON’s service utilities.

• TON Scan: Helps users easily search for transactions on the TON Blockchain.
• TON Payments: Instant payment and transaction channel within the TON Blockchain network, using off-chain technology.
• TON Wallet: TON provides both custodial and non-custodial wallets. Users can choose the solution that suits their needs. There are two different custodial TON wallets: @wallet for transactions via Telegram and @cryptobot for storing, converting, and exchanging Toncoin on the Telegram platform.

Highlights of Toncoin

• The TON project, closely related to Telegram, focuses on developing the SocialFi sector: TON has built a Web3 ecosystem on Telegram, allowing users to easily use and access dApps through the Telegram Apps Center.
• TON has combined both Proof-of-Work (PoW) and Proof-of-Stake (PoS): Initially, TON tokens were distributed through PoW mining without ICO or IEO. Later, TON transitioned to the PoS mechanism to increase speed and reduce operating costs.
• The BFT PoS (Byzantine Fault Tolerant Proof of Stake) consensus mechanism is a special feature of TON: Users must stake a certain amount of TON tokens to become validators. A minimum of 300,000 TON tokens is required to become a validator, aiming to limit attacks from those who hold more than 51% of the validators on the network.
• TON has set a world record for the fastest transaction processing speed and best scalability: In a test, the TON Blockchain achieved 104,715 TPS (Transactions Per Second). This was achieved thanks to the Dynamic Sharding model, which allows flexible changes in the size and length of shardchains. This helps the TON network process a large number of user transactions without being limited by a fixed number of shards like conventional Sharding.

Related: TON Foundation Establishes Ecosystem Development Fund

Team

TON was previously established by siblings Pavel and Nikolai Durov, and the project is now managed by The TON Foundation. The TON Foundation is a non-profit organization responsible for developing and ensuring that TON continues in the direction set by the two founders.

Currently, The TON Foundation has around 40 developers working in this organization. Some information about the members can be found on Github.

Investors

In the period from 2021 to 2022, TON successfully attracted a total of $16 million from investors Runa Capital and DWF Labs.

In 2023, TON continued to successfully raise funds from 4 other investors such as KuCoin Ventures, MEXC Ventures, Mask Network, and Animoca Brands. However, the specific amount they invested has not been disclosed.

In 2024, as of the current time, TON has continued to successfully raise funds with 3 different rounds of funding. Among them, there are 2 rounds where the amount is not disclosed and one round of funding worth $8 million from Pantera, MIRANA, and Kucoin.

Partners

The Open Network (TON) is currently establishing partnerships with many important partners in both the Web2 and Web3 fields. Here are some prominent partners of TON:

• Tencent Cloud: TON has partnered with Tencent Cloud, a leading cloud service provider, to leverage Tencent Cloud’s infrastructure and technology to develop its network.
• Mantle Network: Collaboration with Mantle Network, a dApps development platform on the blockchain, helps TON expand its dApps ecosystem on its platform and create unique experiences for users.
• BIT Exchange: TON has partnered with BIT Exchange, a cryptocurrency exchange, to enhance integration and trading of TON tokens on this exchange.
• Mix Pay: Mix Pay, a cryptocurrency payment service, has partnered with TON to provide convenient payment solutions and integrate into the application and service network of TON.

What is TON Coin?

Basic Information about TON Coin

• Name: Toncoin
• Ticker: TON
• Blockchain: TON Blockchain
• Contract: TON: EQAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAM9c
• Total supply: 5,101,877,646 TON
• Circulating supply: Updating

TON Coin Allocation

The development process of the TON blockchain has faced many difficulties and setbacks, making the allocation of TON Coin complex. Here are some important points about TON Coin allocation to note:

• 98.55% of the total TON Coin has been allocated through the previous PoW mining process. During this phase, approximately 200,000 TON Coins were mined per day.
• The remaining 1.45% is allocated to the project’s development team.

However, after 2 years and transitioning to BFT PoS (Byzantine Fault Tolerance Proof of Stake), the mining mechanism no longer exists, and new tokens created will be allocated to validators (transaction verifiers) on the network.

Utility of TON Coin

Toncoin is the key token in The Open Network’s network and has the following important applications:

• Transaction and network fees: Toncoin is used to pay fees when conducting transactions and interacting with smart contracts on The Open Network.
• Project governance: Owning Toncoin allows you to participate in the voting process and make important decisions related to The Open Network, ensuring thoughtful and fair decisions from the community.
• Service fee payments: Toncoin is used to pay service fees in The Open Network ecosystem, including TON Services, TON Storage, TON DNS, TON Proxy, and many other services.
• Staking and rewards: By staking Toncoin in the network, you can participate in securing the network’s security and receive rewards for verifying transactions and creating new blocks on the network.

Buying and Selling TON Coin

Users can trade Toncoin on: ByBit, OKX, Bitget, MEXC.

Roadmap

The Open Network (TON) roadmap has outlined some important plans for the future, including:

• Toolkit for Stablecoin: TON is developing a special Toolkit for Stablecoin. This aims to support the creation and management of stablecoins on the TON network.
• Jetton Bridge Development: TON is focusing on developing Jetton Bridge, a technology that allows conversion and interaction between currencies and assets on different blockchain networks. Jetton Bridge will create connectivity and integration between TON and other blockchain ecosystems.
• Separation of Collator and Validator: TON is in the process of separating the roles of Collator and Validator in the network. This aims to enhance the system’s security and performance while providing a robust infrastructure for transaction verification and block creation on TON.
• Launch of guides and tools for Sharding: TON plans to release a guide and support tools for Sharding. Sharding is an important technology to enhance the scalability and performance of the network, allowing simultaneous processing of multiple transactions and data on TON.

Similar Projects

TON is developed as a Layer 1 blockchain, so there are similar projects such as Ethereum, Solana, Near, Cosmos, …

Project Information

• Twitter
• Telegram
• Website

Conclusion

TON, also known as The Open Network, is a Layer 1 blockchain using the Proof of Stake (PoS) consensus mechanism to enhance user experience by processing transactions quickly with low fees. Despite facing many challenges in the past, TON continues to operate and is striving to build a diverse Web3 ecosystem to meet user needs.

Through the article “What is Toncoin? Information about TON Coin” have you understood Toncoin? If not, please leave a comment below to get answers to your questions!