The Open Network (TON) is a proof-of-stake blockchain, stewarded by the TON Foundation with support from Telegram Inc. It is designed for horizontal scalability via a mechanism called infinite dynamic sharding, having demonstrated over 100,000 transactions per second (TPS) in test environments—surpassing Solana’s 60,000 TPS. Many analysts believe the chain’s native token currently remains undervalued due to several structural and strategic advantages:
- Highly concentrated supply and scarcity dynamics, making it a relatively underowned Layer 1 (L1).
- A clear go-to-market strategy backed by a top-tier distribution channel.
- Significant headroom for growth based on current key performance indicators.
- Multiple cryptocurrency-specific catalysts on the horizon.
An Overview of TON
The History of TON
TON, originally named the Telegram Open Network, traces its origins back to 2018 when Telegram’s founders, brothers Pavel and Nikolai Durov, began exploring a blockchain solution for the messaging platform. That year, they raised $1.7 billion through an initial coin offering (ICO) of TON tokens (then called Grams), shortly followed by the release of a whitepaper and a testnet in the spring of 2019.
After facing regulatory challenges—including a lawsuit from the U.S. Securities and Exchange Commission (SEC) alleging an unregistered securities offering—Telegram agreed to refund investors and paid an $18.5 million settlement by May 2020.
Although Telegram’s core team officially halted development, a new group of developers, initially called NewTON (later renamed the TON Foundation), continued building the network in line with the original design principles of a "blockchain of blockchains." Meanwhile, until June 2020, TON tokens could be mined via a proof-of-work (PoW) system using a "Giver" smart contract. While this distribution method aimed to promote decentralization and fairness, on-chain analysis suggests a significant portion of the supply was mined by insiders or addresses affiliated with the TON Foundation.
Since its formation, the TON Foundation has been instrumental in the project’s development. Its funding comes not only from early mining but also from recent over-the-counter (OTC) sales to professional investors. A major milestone came in September 2023, when the Foundation announced a formal partnership with Telegram, led by core team member Anatoliy Makosov. This collaboration marks a critical step in TON’s ongoing development and strengthens the token’s bullish outlook.
The Current State of the Ecosystem
TON’s architecture consists of four core components:
- TON Blockchain: A general-purpose blockchain with a permissionless execution layer.
- TON Payments: A low-fee micropayment platform for instant peer-to-peer transfers, currently accessible via a wallet bot within Telegram.
- TON Storage: A decentralized file storage and distribution system, similar to a decentralized Dropbox.
- TON Proxy: A service that ensures censorship resistance by allowing users to run .ton sites independent of centralized domains.
All four components follow a detailed roadmap aimed at ensuring future interoperability.
In recent weeks, the TON ecosystem has experienced a Cambrian explosion of on-chain activity, driven by coordinated efforts from the TON Foundation, Telegram, and ecosystem partners. A major development was Tether’s April announcement of native USDT integration on TON, enabling deeper decentralized exchange (DEX) liquidity and greater capital inflow.
The TON Foundation is also running several liquidity mining incentives, including 11 million TON (approx. $50 million) allocated to DeFi liquidity providers and over 30 million TON for broader on-chain incentive programs. As a result, the total value locked (TVL) denominated in TON skyrocketed to 30 million by April 2024—a sixfold increase since the start of the year.
While DeFi liquidity mining is a well-understood mechanism that may lead to capital flight post-reward periods, the true value of these incentives lies in Telegram’s ability to engage its massive user base with the TON ecosystem. Current reward programs focus on viral game mechanics, such as the clicker game NotCoin, which attracted over 3.5 million daily active users. Other initiatives include rewards for in-app tasks like NFT and DNS domain minting, followed by liquidity mining on major TON-based DEXs.
The overarching goal is to leverage Telegram’s distribution channel to gradually onboard and retain users within the TON ecosystem. This strategy has driven substantial growth across several key metrics:
- Transaction volume increased tenfold, from 200,000 daily transactions in early 2023 to 2–4 million per day by March 2024.
- Activated wallets grew 3.6x, from 600,000 in January 2024 to 3.5 million by April.
- Daily active wallets (DAW) reached six figures, rising from 30,000 at the start of the year to 160,000.
- Daily fees on TON range between $50,000 and $250,000, with 50% of fees burned.
Although some of this growth may be incentive-driven, the speed and scale of adoption are notable for an ecosystem with relatively modest incentive sizes compared to earlier L1 launches.
Tokenomics and Supply Dynamics
A sound tokenomic structure underpins TON’s investment thesis. Although its valuation is substantial—$24 billion fully diluted valuation (FDV) and $16 billion circulating market cap—key factors support its potential appreciation.
The total supply is fixed at 5,105,734,318 TON, with an initial allocation of 85% to users and 5% to validators. The network inflates at a modest 0.6% annually to reward validators. Importantly, a significant portion of the supply is locked:
- Approximately 1.3 billion TON are locked in a Believers Fund smart contract, representing over 20% of the supply, until October 12, 2025. These tokens will be distributed monthly over three years after a cliff period.
- Another 1.1 billion TON are held by early miner wallets that have been inactive for 48 months.
Combined, these locks remove about 47% of the total supply (2.4 billion TON) from circulation for the foreseeable future, resulting in an effective circulating market cap of approximately $8.5 billion.
The Foundation has also conducted OTC sales to venture firms and professional investors, including:
- An eight-figure investment from MEXC Ventures in October 2023.
- Animoca Brands becoming a major validator in November 2023.
- An $8 million investment by Mirana Ventures in March 2024.
While TON’s value accumulation narrative is still developing, growing on-chain activity—coupled with a fee-burn mechanism that destroys 50% of transaction fees—should improve token scarcity over time.
Telegram is also enhancing TON’s utility. Recently, it announced that TON will be the exclusive payment method for advertising on the platform. Advertisers must use TON to fund campaigns, with revenue shared between Telegram and content creators. Additionally, Telegram now accepts TON for Telegram Premium subscriptions via Fragment Store. These moves demonstrate a deliberate effort to integrate TON directly into Telegram’s economy.
Investment Thesis and Growth Potential
Concentrated Supply and Underownership
With a low annual inflation rate of 0.6%—below even Bitcoin’s—and nearly half the supply locked, TON’s float is relatively tight in the medium term. Moreover, about 86% of mined tokens are controlled by or affiliated with the TON Foundation, further reducing sell pressure.
Notably, much of the recent investment and interest has originated from Asian markets, suggesting that European and American investors are still underallocated. This geographic skew may indicate significant future buying pressure from Western markets as awareness grows.
From a technical perspective, TON’s current price is only 2–3x its 2023 lows, a relatively modest gain compared to other L1s like Solana (SOL), Avalanche (AVAX), and Near Protocol (NEAR). This may limit downside risk while leaving room for substantial appreciation.
Clear Strategy and Long-Term Vision
TON aims to become a Web3 super-app accessible directly from a user’s smartphone—a vision that could challenge established platforms like WeChat. This represents a fundamental shift from most blockchain projects, which primarily cater to speculators and technically adept users. TON’s strategy targets a much broader total addressable market (TAM), justifying a higher potential valuation.
Tether’s integration and Telegram’s active support provide tangible validation. Each component of TON—Blockchain, Payments, Proxy, and Storage—follows a robust roadmap aimed at mass adoption.
Significant Growth Opportunity
With 3.5 million on-chain wallets currently activated versus Telegram’s 800 million monthly active users (projected to reach 1.5 billion in five years), TON’s growth potential is substantial. The Foundation’s goal is to convert 30% of Telegram’s user base over the next 3–5 years. Converting just 0.2% of Telegram’s 200 million daily active users would exceed Ethereum’s current daily active user count.
Crypto-Specific Catalysts
Daily trading volume for TON recently exceeded $170 million. A potential Binance spot listing could further reduce investment risk, enhance liquidity, and provide additional upside momentum.
Risks and Mitigations
- Valuation Sustainability: TON is an ambitious project with high expectations. Its token must function as a currency within the ecosystem rather than purely as a speculative asset. Currency premiums are harder to sustain than technology premiums.
- OTC Sales: Details around OTC transactions require scrutiny, as discounted OTC purchases could reduce buying pressure on public markets.
- Developer Engagement: TON currently has only 39 full-time developers and around 120 monthly active developers—significantly fewer than Ethereum’s 2,400 full-time and 78,000 monthly active developers. The obscure FunC programming language may be a barrier.
- Supply Unlock: The Believers Fund lockup expires in October 2025, followed by a three-year distribution period. This could introduce sell pressure if not managed carefully.
- Regulatory Risk: While prior settlements with the SEC may have reduced regulatory uncertainty, risks remain. However, Telegram’s deliberate integration of TON suggests thorough legal diligence.
Frequently Asked Questions
What is TON?
TON is a high-throughput proof-of-stake blockchain originally developed by Telegram’s founders. It is now maintained by the TON Foundation and designed for mass adoption via infinite sharding and low-cost transactions.
How is TON connected to Telegram?
Though legally separate, TON has a formal partnership with Telegram. The messaging app integrates TON-based services like payments and wallets, providing a built-in user base of hundreds of millions.
What makes TON different from other blockchains?
TON focuses on user-friendly accessibility and scalability, aiming to serve as a platform for decentralized applications that appeal to mainstream users rather than just crypto natives. Its integration with Telegram is a unique advantage.
Is TON a good investment?
While all investments carry risk, TON offers a compelling combination of limited circulating supply, massive growth potential via Telegram’s user base, and increasing utility within one of the world’s largest messaging platforms. Always conduct your own research.
What are the main risks of investing in TON?
Key risks include potential sell pressure from future token unlocks, relatively low developer activity compared to larger blockchains, and the challenge of converting Telegram users into active TON participants.
How can I get started with TON?
You can acquire TON tokens on several major exchanges or interact with the ecosystem using built-in Telegram tools like the wallet bot. 👉 Explore more strategies for engaging with emerging blockchains
Conclusion
TON’s growth is unlikely to come from existing users of Ethereum Virtual Machine (EVM) or Rust-based blockchains. Instead, it is carving out a unique consumer niche focused on speed, convenience, and censorship-resistant decentralized solutions. In the long term, TON’s comparable value ceiling could be BNB’s $90 billion market cap—a realistic target given its strategic advantages. For investors and users alike, TON represents a distinct opportunity for outsized returns and broader blockchain adoption.