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 decentralized blockchain platform designed for scalability, high throughput, and secure application hosting. Below is a comprehensive analysis of its token economics, including issuance, allocation, usage, incentives, locking, and unlocking mechanisms.
Issuance Mechanism
- Initial Supply: TON launched with an initial total token supply of 5.00 billion.
- Pre-mining: In June 2020, 4.92 billion TON (~96.66% of the total supply) were pre-mined and allocated to 20 "Proof-of-Work (POW) Givers" smart contracts. These were depleted by June 2022.
- Ongoing Issuance: TON has an annual inflation rate of 0.60%. New tokens are minted as block rewards for validators, with 1.7 TON per masterchain block and 1 TON per basechain block. The total reward pool per validation cycle is ~40,000 TON (<0.01% of total supply).
Allocation Mechanism
- No Official Breakdown: There is no officially disclosed allocation breakdown from the TON Foundation or Telegram Messenger Inc.
- Distribution: The majority of tokens were distributed via POW mining in the early phase. As of November 2023, the circulating supply is ~3.45 billion TON (~69% of total supply).
- Concentration: The top ten wallets hold ~3.14 billion TON (~62.8% of total supply), with the top three wallets each controlling over 10% of the circulating supply.
Usage and Incentive Mechanism
| Use Case | Description |
|---|---|
| Transaction Fees | TON is used to pay gas fees for all network transactions, including storage and computation. |
| Medium of Exchange | TON can be used for payments throughout the TON ecosystem. |
| Staking (Validators) | Users can stake a minimum of 300,000 TON to run a validator and secure the network. |
| Staking (Nominators) | Tokenholders can nominate at least 10,000 TON to validators and share in rewards. |
| Governance | TON holders can vote on onchain governance proposals via the governance portal. |
- Staking Rewards: Validators and nominators earn rewards from transaction fees and newly minted tokens.
- Deflationary Mechanism: Since June 2023, 50% of all transaction and storage fees are burned, reducing the circulating supply over time. A "Black Hole" address exists for manual burns.
Locking and Unlocking Mechanisms
- Staking Lock: TON staked for validator or nominator purposes is locked for the duration of the validation cycle (~18 hours per cycle).
- Locker Smart Contract: A smart contract called "The Locker" allows users to lock up TON for extended periods, potentially earning additional rewards.
- Vesting Toolkit: A vesting wallet toolkit is available for teams, enabling structured token release schedules.
- No Centralized Vesting: There is no evidence of a centralized vesting or lockup schedule for the initial supply, as most tokens were distributed via mining.
Unlocking Time
- Validator/Nominator Unlock: Staked TON can be unlocked after the end of the validation cycle.
- Custom Lockups: Users can choose custom lockup periods via smart contracts for additional incentives.
- No Fixed Unlock for Initial Supply: The initial pre-mined tokens were distributed through mining and are not subject to a vesting schedule.
Summary Table
| Mechanism | Details |
|---|---|
| Issuance | Initial 5B supply, 0.60% annual inflation, block rewards to validators |
| Allocation | Pre-mined to POW Givers, then mined by community; no official allocation breakdown |
| Usage | Gas fees, payments, staking (validators/nominators), governance |
| Incentives | Staking rewards, transaction fees, deflationary burn (50% of fees burned) |
| Locking | Staking lock (validation cycle), optional smart contract lockups, vesting toolkit |
| Unlocking | End of validation cycle for staking; custom periods for smart contract lockups |
Additional Notes
- Network Support: TON is available on TON, Ethereum, and BNB Chain.
- Governance: Voting power can be weighted by balance or "one wallet, one vote." Proposals require a supermajority of validator votes to pass.
- No Legal Rights: TON does not confer capital, profit, or legal rights in the TON Foundation.
This structure ensures a balance between inflationary rewards for network security and deflationary mechanisms to support long-term value. The open, permissionless validator system and flexible locking options provide both security and user choice.
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.
