TONCOIN (TON) Tokenomics
TONCOIN (TON) Information
Apart from processing millions of transactions per second, TON blockchain-based ecosystem has all the chances to give rise to a genuine Web3.0 Internet with decentralized storage, anonymous network, DNS, instant payments and various decentralized services.
TONCOIN (TON) Tokenomics & Price Analysis
Explore key tokenomics and price data for TONCOIN (TON), including market cap, supply details, FDV, and price history. Understand the token's current value and market position at a glance.
In-Depth Token Structure of TONCOIN (TON)
Dive deeper into how TON tokens are issued, allocated, and unlocked. This section highlights key aspects of the token's economic structure: utility, incentives, and vesting.
Toncoin (TON) is the native token of The Open Network (TON), a Layer-1 blockchain designed for scalability, high throughput, and decentralized applications. Below is a comprehensive analysis of its token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms.
Issuance Mechanism
- Initial Supply & Mining: TON launched with an initial supply of 5 billion tokens. In June 2020, 4.92 billion TON (~96.66% of the total supply) were pre-mined and placed into 20 Proof-of-Work (PoW) Giver smart contracts. These allowed anyone to mine TON by solving computational puzzles until June 28, 2022, when the mining phase ended and all tokens were distributed.
- Ongoing Issuance: After mining ended, TON transitioned to a Proof-of-Stake (PoS) model. New tokens are issued as block rewards to validators, with an annual inflation rate of 0.6%. The network subsidizes block creation by adding TON to the reward pool: 1.7 TON per masterchain block and 1 TON per basechain block. The total reward pool per validation cycle is ~40,000 TON, which is less than 0.01% of the total supply.
Allocation Mechanism
- Mining Distribution: The vast majority of TON was distributed via PoW mining from the Giver contracts, promoting a fair and decentralized initial distribution.
- Current Distribution: As of late 2023, the top ten wallets hold ~62.8% of the total supply, with the largest wallet holding ~26.2%. There is no official, detailed public breakdown of allocations to the team, investors, or other stakeholders.
- No Public Sale: There is no evidence of a public ICO or token sale for TON after the SEC prohibited Telegram from issuing Grams to investors.
Usage and Incentive Mechanisms
TON serves multiple roles within the ecosystem:
| Use Case | Description |
|---|---|
| Transaction Fees | Used to pay gas fees for all network transactions, including smart contracts and storage. |
| Staking & Validation | Required for running validators (min. 300,000 TON) and nominators (min. 10,000 TON). |
| Governance | Used for on-chain voting on proposals and network upgrades via the governance portal. |
| Medium of Exchange | Used for payments within the TON ecosystem, including dApps, DeFi, and Telegram services. |
| DeFi & Incentives | Used in liquidity pools, yield farming, and as rewards in incentive programs. |
| Airdrops & Quests | Distributed as rewards for on-chain activity, quests, and community engagement. |
- Deflationary Mechanism: Since June 2023, 50% of all transaction and storage fees are burned, reducing circulating supply and introducing a deflationary pressure.
- Incentive Programs: The TON Foundation regularly launches incentive programs (e.g., 5 million TON for DeFi liquidity, 30 million TON for The Open League) to boost ecosystem growth, DeFi adoption, and user engagement.
Locking and Vesting Mechanisms
- Validator Staking: Validators must lock a minimum of 300,000 TON to participate in block production. Nominators can stake at least 10,000 TON to support validators and share in rewards.
- Lockup Tools: TON provides smart contracts (e.g., "The Locker") for voluntary token lockups, which can be used for vesting, team allocations, or community programs. These contracts can assign rewards for locking actions.
- Vesting Wallet Toolkit: A toolkit exists for teams to implement vesting schedules, though no official, detailed vesting schedule for team or foundation tokens has been disclosed.
Unlocking Time
- Mining Unlock: All PoW-mined tokens were unlocked and distributed by June 2022.
- Validator/Stake Unlock: Staked tokens are locked for the duration of the validation cycle (~18 hours) and can be withdrawn after the cycle ends.
- No Centralized Unlock Schedule: There is no evidence of a centralized, time-based unlock schedule for team, investor, or foundation allocations, as most tokens were distributed via mining.
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | Initial 5B supply via PoW mining (ended June 2022); ongoing 0.6% inflation for PoS rewards |
| Allocation | ~96.66% via mining; no public sale; top 10 wallets hold ~62.8% of supply |
| Usage | Gas, staking, governance, payments, DeFi, airdrops, ecosystem incentives |
| Incentives | Staking rewards, DeFi liquidity mining, airdrops, quests, community programs |
| Locking | Validator/nominator staking, voluntary lockups, vesting toolkits |
| Unlocking | All mining tokens unlocked by June 2022; staking unlocks after each cycle (~18h) |
| Deflation | 50% of transaction/storage fees burned since June 2023 |
Additional Notes
- Governance: TON holders can vote on proposals using either weighted balance or one-wallet-one-vote systems. DAO Spaces allow for custom governance structures.
- Transparency: While the initial mining and PoS mechanisms are transparent, there is no official, detailed breakdown of allocations to the team, foundation, or investors.
- Ecosystem Growth: TON’s DeFi TVL has grown exponentially, driven by DEXs like STON.fi and DeDust, and supported by large-scale incentive programs.
References to further reading and official documentation are available in the underlying sources.
TONCOIN (TON) Tokenomics: Key Metrics Explained and Use Cases
Understanding the tokenomics of TONCOIN (TON) is essential for analyzing its long-term value, sustainability, and potential.
Key Metrics and How They Are Calculated:
Total Supply:
The maximum number of TON tokens that have been or will ever be created.
Circulating Supply:
The number of tokens currently available on the market and in public hands.
Max Supply:
The hard cap on how many TON tokens can exist in total.
FDV (Fully Diluted Valuation):
Calculated as current price × max supply, giving a projection of total market cap if all tokens are in circulation.
Inflation Rate:
Reflects how fast new tokens are introduced, affecting scarcity and long-term price movement.
Why Do These Metrics Matter for Traders?
High circulating supply = greater liquidity.
Limited max supply + low inflation = potential for long-term price appreciation.
Transparent token distribution = better trust in the project and lower risk of centralized control.
High FDV with low current market cap = possible overvaluation signals.
Now that you understand TON's tokenomics, explore TON token's live price!
How to Buy TON
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TONCOIN (TON) Price History
Analyzing the price history of TON helps users understand past market movements, key support/resistance levels, and volatility patterns. Whether you are tracking all-time highs or identifying trends, historical data is a crucial part of price prediction and technical analysis.
TON Price Prediction
Want to know where TON might be heading? Our TON price prediction page combines market sentiment, historical trends, and technical indicators to provide a forward-looking view.
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Disclaimer
Tokenomics data on this page is from third-party sources. MEXC does not guarantee its accuracy. Please conduct thorough research before investing.
