What is Toncoin?


Toncoin (ticker code TON) is the native cryptocurrency token of The Open Network (TON), a layer-1 network. TON is a decentralized, layer one blockchain engineered to deliver fast, economical, and energy-efficient transactions

TON’s blockchain-based ecosystem is being designed to create a Web3 internet featuring an anonymous network, decentralized storage, instant payments. The main goal of TON is to bring digital asset payments to a wide audience by leveraging Telegram’s user base. There’s over 500 million potential new users reached through the integration of the two platforms.

Key Takeaways

  • Toncoin was founded in 2018 by the Durov brothers, who also created the Telegram instant messaging app.
  • The main goal of TON is to bring digital assets and crypto payments to a wide audience by leveraging Telegram’s large user base.
  • TON aims to bring fast, affordable, and energy-efficient transactions within the platform, as well as a range of decentralized services.

How does Toncoin work?

Toncoin is the native token of the TON blockchain that uses it for a variety of purposes on the network, including a form of payment in dApps. TON supports a high number of simultaneous users through blockchain sharding, which divides the blockchain into smaller subnetworks called shards that work to process tasks efficiently and prevent large amounts of unverified blocks.

TON is a PoS network. Those who stake TON help validate transactions and the network rewards them with the token. The network’s flexible architecture also allows nominators to lend validators their tokens in exchange for rewards by staking their assets in a pool. Smart contracts manage the structure of both nominators and validators for added security. The TON Virtual Machine (TVM) executes all the smart contracts on the network and also enables the deployment of fairly complex ones.

Users can easily access and transfer Toncoin through the @wallet bot on the Telegram messenger app. The bot even enables buying TON without paying any transaction fees, although sellers are subject to a 0.9% commission fee.

There are several services and applications on the TON blockchain that accept payment in Toncoin. TON ecosystem supports the development of new DApps, making it highly adaptable. Toncoin holders also participate in the decision-making process of the TON network if they want to. It’s the same process as a DAO where participants cast a vote that propose a change to the blockchain.

TON Ecosystem

The TON ecosystem actively supports the incorporation of new projects, with Toncoin serving as a connecting link for all of them to interact with each other.

Ton Storage

Ton Storage is an extension of the TON network that offers users a web platform for data storage and sharing, similar to services like Dropbox or Filecoin. It serves as a decentralized storage solution that fully integrates with Toncoin and stores data in an encoded form within the blockchain network. Only the owner of the synchronized crypto wallet can access it.

TON Proxy

TON Proxy is an innovative project aiming to create a decentralized and anonymous network, known as Web 3.0, using digital entry points called TON proxies. These proxies allow users to connect to the independent TON network and access its sites by reconfiguring their proxy server connection. This concept is similar to the TOR shadow internet project, which can be accessed through a special browser.

TON Domains

TON Domains – the TON project is currently hosting an auction for “.ton” domain names. Users can purchase their own unique domains for use on the Web3 TON internet network. These domains can also link to wallets. This allows users to receive coins by simply providing the domain address as the recipient.

Toncoin Development

In 2018, Telegram published a lite paper and a white paper for the Telegram Open Network, then named Gram originally. The project raised funds through private sales of Gram tokens and gained massive amounts of attention. They set a record for the second-largest token sale of all time with a whopping $1.7 billion raise in April 2018. Unfortunately, this attention also attracted tons of scams leading Telegram to ultimately establish an official method for participating in the ICO.

In an effort to follow Securities and Exchange Commission (SEC) regulations, Telegram initially attempted to conduct public sales of Gram under U.S. jurisdiction. However, the SEC viewed the initial investors as underwriters and deemed Telegram’s offering of Gram as an unregistered distribution of securities. Despite Telegram’s efforts to fight the SEC in court, the company ultimately lost. In May 2020, founder Pavel Durov ended Telegram’s involvement in TON’s development and began issuing refunds to the initial investors.

Despite this setback, the TON blockchain had gained a dedicated following. The decentralized crypto community saw potential the open-source project’s potential.

Open TON Community developers could continue building on TON by accessing the code on GitHub and adding new functionality to the network.

Toncoin FAQ

Frequently asked questions about TON.

What are TON and Toncoin?

The TON network’s native token is Toncoin (TON). TON stands for ‘The Open Network’ – a decentralized layer one blockchain. Layer 1 refers to the foundational level of blockchain development. It represents the core framework or architecture of a blockchain network.

Who are the Toncoin founders?

The blockchain platform was initially created by Nikolai and Pavel Durov and developed by the Telegram team with the aim of launching a token called Gram and building a platform for decentralized applications.

However, the development of Gram faced opposition from the US SEC, which deemed it as securities and banned its release. After Pavel Durov stepped down as CEO of Telegram in 2020, the development of the project was taken over by independent crypto enthusiasts.

Since the code was open-source from the start, the community continued the development with Anatoliy Makosov and Kirill Emelianenko leading the launch and development of the current network as members of the NewTON community, which later became the TON Foundation.

How Is the Toncoin (TON) Network Secured?

The network employs the proof-of-stake (PoS) consensus mechanism to validate transactions and uses Toncoin to reward validators. Nominators, who provide tokens to validators, also receive rewards. The management of validators and nominators deals through smart contracts, which add an extra security layer to the network. Smart contracts execute using the TON Virtual Machine (TVM).

What is Toncoin’s use?

The primary use of Toncoin (TON) is as a commission payment for processing transactions on the TON blockchain. However, due to the TON network’s sharding feature, it can also be used for cross-chain transaction fees or as payment for creating new work chains.

In addition, people can use the token for a variety of other decentralized services. such as payment for decentralized data storage, use of TON Proxy, TON DNS, payments within DApps on the blockchain, validator rewards for maintaining the blockchain, and voting in TON’s on-chain governance program.

What is the circulating supply of Toncoin (TON)?

At the current time’s writing, TON’s circulating supply makes up 24% of the total supply. Toncoin price reached its highest price of $5.84 on November 12, 2021, at a market cap of $5.4 billion.

Final Thoughts

Toncoin’s use within the Telegram platform gives its community plenty of important utilities and mass adoption to the cryptocurrency. Its release and integration show how effective it can be for a platform with an existing audience to utilize it. We plan to do the same with DUA Token for our dua app. Our ecosystem combines a user base of more than 5 million. DUA Token is set to initially launch in dua Love and bring DeFi to +500k users, powering a next-gen matchmaking environment. Visit here to learn about DUA, and follow our Twitter for development updates!

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