Toncoin represents a blockchain network that was initially conceptualized by Telegram, the renowned messaging app, in 2018. During this period, Telegram secured $1.7 billion in private funding with the intention of establishing a blockchain that would serve as a competitor to Ethereum. The term 'ton' in Toncoin is an abbreviation for The Open Network.
However, prior to Toncoin's official launch, Telegram abandoned the project due to legal actions taken by the US Securities and Exchange Commission (SEC), which filed a lawsuit against Telegram, asserting that $TON was a security.
Following Telegram's withdrawal, independent developers took up the Toncoin project. Newton, now rebranded as Toncoin, assumed control of the ton.org domain name and the Toncoin code repository in 2021. In the same year, Toncoin introduced the Toncoin blockchain and its associated $TON token.
Despite Toncoin's autonomy from Telegram, Pavel Durov, Telegram's founder and CEO, expressed his support for Toncoin in a 2021 post on Telegram. He affirmed that Telegram no longer had any financial or technological connections to $TON.
The Utilization of Toncoin
The $TON token serves multiple crucial functions within the Toncoin blockchain ecosystem.
Payment for Transaction Fees
Primarily, $TON is the exclusive token accepted for most transactions on the Toncoin blockchain and across various blockchains. Similar to users on the Ethereum blockchain who pay $ETH gas fees, anyone using the Toncoin network must utilize $TON to process transactions.
$TON is also essential for covering costs related to data storage on the Toncoin blockchain and obtaining blockchain-based domain names. Toncoin is actively developing a proxy, and $TON is anticipated to be used for accessing the proxy.
Toncoin Governance
Furthermore, $TON functions as a governance token for the Toncoin blockchain. Every $TON holder can participate in voting on proposals that influence the network's future.
The inaugural Toncoin vote occurred in February 2023, focusing on freezing inactive $TON in mining wallets. The outcome resulted in nearly 20% of the Toncoin supply being locked for a period of four years.
Staking
Investors in Toncoin have the opportunity to stake their $TON tokens to validate transactions on the network. The blockchain utilizes a proof-of-stake validation mechanism akin to Ethereum and other major networks.
Staking for Toncoin is presently available directly on the network or through various leading cryptocurrency exchanges, including Binance. Investors who engage in staking $TON receive additional tokens as a reward.
Toncoin Price History & Price Prediction
Toncoin initially distributed $TON coins through an open mining process accessible to developers, investors, and early adopters from June 2020 to June 2022.
Trading in $TON commenced before the completion of the mining process. According to CoinMarketCap data, $TON was valued at $0.50 in August 2021 and surged to $4.45 by November, reflecting an impressive nearly 800% gain amid the crypto bull market.