Technical Roadmap
From a technical architecture perspective, the design of the TON blockchain in 2021 was notably forward-looking and innovative. Its core concept lies in a modular chain structure, which enhances the system’s scalability and flexibility, hinting at potential future directions in blockchain technology. However, unlike the Solidity language widely used in Web2 and Ethereum EVM ecosystems, TON opted for an in-house approach, developing the TVirtualMachine (TVM) and accompanying proprietary programming languages: Fift, FunC, and Tac. These languages represent TON’s unique positioning and exploration in the tech stack.
FunC, the primary language for TON smart contract development, was designed to adapt to TON’s blockchain characteristics, offering an advanced, statically-typed programming experience similar to C, making it easier for developers to understand and use. Programs written in FunC are then converted into Fift assembly code, which in turn generates TVM-executable bytecode. Fift serves as a low-level assembly language, bridging FunC and TVM, though it is not directly used for smart contract writing but ensures a smooth transition from high-level language to machine instructions.
Tac aims to provide a more abstract programming model on top of FunC while maintaining compatibility with the TON virtual machine, further enriching the developer toolkit for TON.
TON’s choice of this different technological path is closely related to its underlying vision. Instead of solely focusing on Web3 enthusiasts, TON targets a broader Web2 user base, particularly Telegram’s vast user community. To better serve this target audience, TON has incorporated Web2 design philosophies and technical practices, such as high concurrency processing and asynchronous architecture, aiming to maintain performance while lowering the blockchain entry barrier for users.
This strategy is reflected in the ecosystem construction and development of TON, creating a unique ecosystem that blends Web2 and Web3 features. It attracts developers from traditional internet fields while providing fertile ground for Web3 native projects. However, this choice of tech stack and ecosystem layout also poses challenges, especially in developer ecosystem building, where new programming languages and community growth introduce uncertainties. Despite these challenges, TON’s technical decisions showcase its ambition and innovative spirit in blockchain technology and application expansion.
Future Outlook for TON
- Chain Games and Convenient Payments with TG’s Massive User Base
Recently, the TON ecosystem has garnered widespread attention for successfully integrating Web2’s mature business models with Web3’s cutting-edge technology. This is evident in Telegram’s (TG) mini-programs (dApps), which not only leverage Web2 core business support but also incorporate cryptocurrency as added value, offering users a new experience. For example, game developers can use advertising and other Web2 revenue models to create products that attract large numbers of players while achieving profitability, avoiding traditional crypto projects’ marketing-driven, exchange-listing, and short-term harvesting models. More importantly, through global payment features of cryptocurrency, cross-border e-commerce, outbound business, and even flight and hotel bookings have gained new payment channels, greatly expanding business boundaries.
In terms of development, the TON ecosystem offers unprecedented convenience for developers. Most mini-programs can be quickly deployed through HTML5, and with detailed technical documentation and templates provided by TON, developers do not need to start coding from scratch, significantly reducing development costs and time. Feedback indicates that even project teams from Web2 backgrounds can complete mini-program deployment within just two to three days, accelerating the creation of innovative applications.
For the Web3 domain, the TON ecosystem opens up new possibilities. It is not confined to traditional crypto tracks such as infrastructure (Infra) and decentralized finance (DeFi) but encourages exploration and innovation across various areas like social, gaming, e-commerce, and cross-border business. This diversified ecosystem layout not only broadens the choices for project parties but also brings more vitality and imaginative space to the industry.
Moreover, developers in the TON ecosystem can interact and integrate multiple products on a unified platform, particularly evident on Telegram. Users can perform a series of operations through the wallet mini-program without leaving the Telegram platform, avoiding the need to switch to external wallets like MetaMask. This one-stop interaction experience greatly enhances user convenience and satisfaction. Additionally, Telegram’s wallet now supports fiat OTC deposits, allowing users to purchase crypto assets directly with credit cards, making the entire process from funding to participating in on-chain applications seamless and smooth, further lowering the barrier to blockchain exposure and promoting ecosystem prosperity.
In summary, the TON ecosystem’s wide attention is attributed to its excellent performance in Web2 and Web3 integration, development convenience, ecosystem diversity, and user experience optimization. It provides developers with a low-barrier innovation platform and users with a convenient and secure blockchain experience, demonstrating the immense potential and value of blockchain technology in daily life. With the continued development and improvement of the TON ecosystem, it is reasonable to expect that it will become a key force in driving the popularization and application of blockchain technology.
- DeFi — TVL
In the decentralized finance (DeFi) sector, TON’s performance is indeed less remarkable compared to some Layer 2 solutions specifically designed for the crypto-native environment. The total value locked (TVL) in the TON ecosystem stands at $680 million, which is not superior compared to second-tier Layer 2 solutions like Linea and Blast. However, this performance is not surprising as TON has never positioned itself as a purely crypto-native public chain from its inception, and the flourishing of the DeFi ecosystem has not been its primary development goal.
- Stablecoins/Payments/Wallets — Priority Strategy
Since 2017, Telegram has been exploring suitable business models, including payment services, advertising, and previous ICO financing attempts. Despite ambitious plans, actual results have not met expectations. According to Pavel Durov, maintaining Telegram’s normal operation requires about $630 million annually. As of April 2021, The Wall Street Journal reported that Telegram had accumulated up to $700 million in debt. Facing financial pressure, Telegram has undertaken several large-scale bond issuances since 2021 to raise hundreds of millions of dollars, including $330 million obtained from bond sales in March this year.
Although Telegram’s user number is comparable to WeChat, with 900 million active users and still growing, there are significant differences in their monetization models. Payments have been a key commercialization channel for WeChat, while Telegram, constrained by regulatory environments, has been unable to acquire mainstream financial regulatory licenses and thus had to turn to Web3 payment fields. This choice is related to founder Pavel Durov’s early involvement in the cryptocurrency industry.
In 2023, the TON ecosystem began focusing on stablecoin strategies, bringing USDT onto the TON chain and launching a series of incentive measures. Users who have completed KYC (including users from mainland China, Singapore, and other regions) can stake USDT through Telegram’s official wallet Ton Space, with up to 50% APY promised, and each user can receive up to $3,000, for a two-month reward cap, with interest paid in TON tokens. This strategy has led to a surge in USDT issuance on the TON chain from $100 million to $500 million in just two months.
Compared to traditional on-chain payments, USDT transfers on the TON chain offer a payment experience closer to Web2 payments. Users can directly transfer USDT to friends via the wallet, similar to WeChat transfers, with additional features such as the ability to retract transactions, which traditional on-chain payments do not offer. These measures not only enhance the attractiveness of the TON ecosystem but also provide users with more flexible and convenient payment experiences, further bridging the gap between blockchain technology and daily life.
In conclusion, facing financial challenges and regulatory constraints, Telegram has explored a new path in Web3 payments through deep cooperation with the TON ecosystem. This strategy not only addresses its monetization model challenges but also brings users a Web2-like payment experience, showcasing the significant potential of blockchain technology in daily applications. As the TON ecosystem continues to grow and innovate, it is expected to produce more blockchain-based payment solutions, offering more convenient and secure financial services to global users
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- Staking Ratio
In non-Ethereum public chain ecosystems, staking ratios typically remain above 50%, accompanied by high APY (annual percentage yield) to attract miners to participate in network maintenance and transaction validation. However, TON’s staking ratio and reward ratio appear relatively low, which warrants further exploration of the underlying reasons.
Firstly, a significant portion of TON tokens remains in the hands of Ton Foundation and early miners, leading to a limited number of tokens in circulation. When market liquidity is low, the base of users willing to participate in staking also decreases, directly impacting the staking ratio. Secondly, even within the limited circulating tokens, the number of users willing to lock them for rewards might be further restricted, which further depresses the staking ratio.
Additionally, TON’s reward ratio consists of two parts: inflation rate and gas fees. TON’s gas fees are set quite low, approximately 0.035 U per transaction, reflecting that network activity may not have reached expected levels. On one hand, this could be due to many exciting projects in the TON ecosystem still being in the token issuance phase and not fully operational on-chain; on the other hand, low gas fees might indicate that the transaction volume and complexity on the network have not yet reached high levels.
Notably, TON’s inflation rate is set between 0.3% and 0.6%, meaning that the majority of staking rewards come from network-generated gas fees rather than new tokens released through inflation. This approach differs from strategies used by large public chains like Solana, which often use higher inflation rates to incentivize staking and maintain network security and decentralization.
Overall, TON’s lower staking and reward ratios reflect its unique token economic model and network activity status. On one hand, this might be due to concentrated token distribution and limited market liquidity; on the other hand, lower gas fees and inflation rates suggest that network rewards mainly depend on actual transaction activities rather than solely on new token issuance. This model might impact staking attractiveness in the short term, but it helps build a more robust and sustainable economic system, ensuring effective allocation and utilization of network resources. As the TON ecosystem continues to develop and on-chain activities increase, future changes in staking and reward ratios will be worth monitoring, as they will reflect the true health and user engagement of the ecosystem.
In the vast expanse of blockchain, the TON ecosystem shines with its unique brilliance, attracting numerous explorers. It deeply integrates the essence of Web2 and Web3, offering users familiar payment experiences and a rich dApp ecosystem. Through innovative staking mechanisms and economic models, it showcases a development path distinct from traditional public chains.
Despite facing challenges in token concentration and ecosystem building, TON, with its strong technical foundation and community support, is gradually constructing a blockchain world that is both inclusive and vibrant. Looking ahead, TON is expected to continue shining in gaming, social, cross-border payments, and other fields, bringing unprecedented digital life experiences to global users.