Introduction
The Open Network (TON) and its native cryptocurrency, Toncoin, represent a revolutionary shift in blockchain technology.
This guide provides a clear overview of TON’s origin, core architecture, tokenomics, and ecosystem, designed to be accessible for newcomers while valuable for seasoned crypto users.
What is The Open Network (TON)?
The Open Network (TON) is a decentralized, high-performance blockchain platform capable of handling millions of transactions per second. Initially developed by Telegram, TON aims to deliver blockchain solutions that are scalable, intuitive, and seamlessly integrated into existing digital environments.
Its mission is to support the evolution of Telegram into a full-fledged Web3 platform, enabling users not only to communicate through chats, groups, and channels, but also to access decentralized financial services like staking, borrowing, lending, payments, and more.
History of The Open Network (TON)
Genesis and Early Development (2018—2020)
TON’s journey began in 2018 when Telegram announced its ambitious plan to create a scalable blockchain network. The project aimed to address the limitations of existing blockchains, such as slow transaction speeds and high fees.
The goal was to overcome the limitations of earlier blockchains such as Bitcoin and Ethereum, which struggle with scalability and high transaction fees, key barriers to mass adoption.
Originally scheduled for a 2019 launch, TON’s rollout was delayed due to legal challenges, including a lawsuit from the U.S. SEC. As a result, Telegram formally withdrew from the project.
Launch and Progress (2020—2022)
In 2020, Telegram transferred the project to the open-source community. This led to the creation of the TON Foundation, which continued development.
Key milestones included the launch of the mainnet, the introduction of dynamic sharding, and the implementation of TON Payments, showcasing the platform’s potential for real-world applications.
Post-SEC Developments
After Telegram’s departure, the TON community took charge. Developers introduced new features, partnerships flourished, and TON evolved into a robust decentralized network. The community’s efforts have made TON a unique example of resilience and innovation in the blockchain space.
Over the years, most of the known existing tools, DeFi solutions, and products in the ecosystem were created only by the community.
Toncoin (TON): The Native Token
But what is Toncoin?
Toncoin is the native cryptocurrency of TON. It powers the network by facilitating transactions, enabling staking, and supporting governance. As the backbone of TON’s ecosystem, Toncoin ensures smooth operations and incentivizes participation in the network.
As a Proof-of-Stake (PoS) based concept, Toncoin is staked by validators who help maintain the network’s integrity. In return, they earn rewards for processing and validating transactions.
Toncoin Tokenomics and Market Dynamics
Toncoin’s tokenomics focuses on balanced supply and demand. Its capped total supply ensures scarcity, while distribution mechanisms like staking rewards encourage user engagement. Market dynamics, including speculative trading and utility-driven demand, shape Toncoin’s value.
The whitepaper of TON means that the total supply of TON coins is originally limited to 5 billion TONs. Token emission slowly increases, as rewards to validators for mining, and now the total supply is around 5.12 billion TONs.
As stated in the whitepaper, the inflation rate is approximately 2% per year, meaning that over the next 35 years, the supply of TON coins is expected to reach around 10 billion coins.
Toncoin’s value is shaped by both its functional utility (fees, staking, governance) and market forces (trading activity, sentiment, macro trends). Since launch, its price has ranged from $0.50 to $8, and it currently trades around ~$3.
Key Features of TON Blockchain
Blockchain Architecture and Security
TON’s unique architecture is designed for efficiency and security. TON blockchain uses layered protocols to handle transaction validation, storage, and execution seamlessly.
In simple terms, think of TON as a blockchain tree, where branches (shards) split off to handle different loads in parallel, ensuring speed and scalability.
The TON Blockchain consists of one masterchain and up to 2^32 workchains. Each workchain is a separate chain with its own rules. Each workchain can further split into 2^60 shardchains, or sub-shards, containing a fraction of the workchain's state. Currently, only one workchain is operating on TON — basechain.
Scalability with Dynamic Sharding
Dynamic sharding divides the blockchain into smaller, independent shards. This allows TON to process millions of transactions per second, making it highly scalable.
Because of splitting into parts, blockchain can process transactions not sequentially, but in parallel. This feature is available because of shardchains — transactions go through them and in masterchain they only come as a note in every new block.
Proof of Stake (PoS) Consensus Mechanism
TON uses PoS for network validation. Validators stake Toncoin to secure the network, earning rewards while ensuring decentralization and energy efficiency.
As we said in our article about Proof of Stake, PoS blockchains have their own key features: nodes, validators, staking, and security. It helps to improve efficiency, lower costs, and decrease energy consumption.
TON Virtual Machine (TVM)
The TON Virtual Machine (TVM) executes smart contracts and decentralized applications (dApps). It provides a flexible environment for developers to build innovative solutions.
Cross-Shard Transactions and Hypercube Routing
TON’s cross-shard technology enables efficient communication between shards, reducing latency and enhancing transaction speed across the network, that is critical for smooth dApp functionality at scale.
Toncoin Use Cases and Utility
Governance and Voting
Toncoin holders participate in network governance by voting on proposals. This decentralized decision-making process shapes TON’s future.
TON wants to rethink governance and voting concepts. Now every DAO has two main problems:
— Whales and holders of bigger amounts of tokens can choose the solutions, based on their own interests.
— Other participants are less interested to be involved in DAO’s life.
Payment for Transaction Fees
Toncoin is used to pay transaction fees, ensuring the network’s operations remain sustainable.
Every interaction with DeFi protocols includes a small payment for transactions and serves as confirmation of events from the user, as well as from the validator side.
Staking Options and Rewards
Users can stake Toncoin directly or via liquid staking platforms like Bemo. Validators require significant capital (over 600K on the publication date), but Bemo allows broader access with smaller amounts.
TON Ecosystem Overview
TON is more than just a blockchain — it’s becoming a decentralized digital platform. On-chain sites on TON, on-chain storage, payments, proxies, and wallets — ecosystem for decentralised data.
DeFi protocols for comfortable daily use of the financial system — from holding your funds to using them.
TON DNS
TON DNS provides human-readable names for blockchain addresses, simplifying access to TON-based services.
Decentralised sites, domains as NFT and smart contract addresses with readable names — TON DNS have a lot of use cases for web3 systems.
TON Storage
TON Storage is a decentralized solution for data storage, ensuring privacy and efficiency.
The data can be stored on-chain and used as torrent-style P2P file-sharing technology.
TON Proxy and Privacy
TON Proxy protects user anonymity by masking transactions and preventing data tracking.
Your digital character doesn’t have to depend on your physical location.
TON Payments
With fast, low-cost transactions, TON Payments enable seamless payment solutions in TON, USDT, and Jettons — perfect for integrations with dApps and e-commerce platforms.
Integration with Telegram
TON’s biggest advantage? Telegram. The integration includes features like Telegram Stars, Premium subscriptions, and anonymous numbers — all purchasable using Toncoin via the Fragment marketplace.
Additional Services: TON Space, TON DHT
TON Space: Non-custodial Telegram wallet for direct Web3 access
TON DHT: A decentralized hosting and file-sharing protocol
Ton DeFi and integration with “outworld”
As a DeFi tool, the TON already has most of the necessary infrastructure elements from DEX’s for swaps to lending and staking protocols. But TON is not a closed ecosystem and interacts well with external protocols and products. Right now, for your daily use, available:
Oracles: TON is using two oracles — Pyth Network and RedStone. They expand the capabilities of smart contracts by connecting them to the real world. Read more about oracles you can in our article.
TON bridges: Stargate, Symbiosis, and Rhino.fi allow you to transfer your assets from and to other blockchains
L1-L2 Layers: Projects like TAC allow EVM-dApps to interact with TON and Telegram users seamlessly.
How to Buy and Store Toncoin
How to Buy Toncoin on Centralized Exchanges
Centralized exchanges like Bybit, KuCoin, and OKX offer Toncoin. Users create accounts, verify identities, and trade fiat or crypto for Toncoin. On most of the exchanges, you need to have stablecoins, like USDT or USDC, which you can change on TON.
Buying on Decentralized Exchanges
Decentralized exchanges provide greater control over assets. Platforms like STON.fi and DeDust allow users to trade Toncoin directly from their wallets - no KYC required.
Wallet Options
Secure your Toncoin using:
- Tonkeeper or MyTonWallet (hot wallets)
- Ledger (hardware wallet)
- @wallet Telegram bot
Reminder: For full control, use non-custodial wallets.
TON Governance and Community
TON’s governance relies on its engaged community. Developers and users propose and vote on network changes, keeping TON decentralized, adaptable, and forward-looking.
Future Outlook
Potential Telegram IPO and Its Influence
A Telegram IPO could elevate Telegram Open Network’s adoption by increasing its visibility and credibility, potentially driving Toncoin’s value.
But founder Pavel Durov may opt to monetize existing tools (Ads, Stars, Premium) instead. The future remains open-ended, but either path boosts TON’s ecosystem.
Planned Projects and Development Path
The TON roadmap includes scaling solutions, ecosystem expansion, and enhanced developer tools, paving the way for future growth. BTC integration, L2 payment network, TON payments — TON plans to become a Swiss Knife in the blockchain world.
Frequently Asked Questions (FAQs)
What can I do with Toncoin?
Toncoins can be used for payments, staking, governance, and accessing dApps across the TON ecosystem — including buying Telegram products (Telegram Premium, Numbers, or Stars) and NFTs.
Where can I buy Toncoin?
Toncoin is available on major centralized and decentralized exchanges, such as ByBit, OKX, Binance, and DeDust or STON.fi.
How secure is TON?
TON employs advanced cryptography and PoS consensus, ensuring high security.
Will Toncoin’s price go up?
Factors like adoption, market trends, and ecosystem growth influence Toncoin’s price. But you need to understand that every token has volatility and can’t only grow. Do your own research before every buying and selling.
Can I mine Toncoin?
No. TON uses Proof of Stake, not Proof of Work. Toncoin cannot be mined but can be earned through staking or validator participation.
What is the best wallet to store Toncoin?
Options include hardware wallets, like Ledger, or hot wallets such as Tonkeeper, MyTonWallet, and Telegram’s @wallet bot.
Conclusion
The Open Network (TON) and Toncoin are reshaping blockchain by combining scalability, real-world utility, and deep Telegram integration.
With a clear vision for the future and a vibrant community, TON is positioned to become a key player in the decentralized internet. Whether you’re a developer, investor, or curious user, the TON journey is just beginning. And you can be a part of this path.
