Dialogue TON Foundation: Can 900 million Telegram users be brought into cryptocurrency?

Guest: Jack Booth, Market Director of TON Foundation

Compiled by: Wu Says Blockchain

Is Notcoin developed by your team? Why is it listed on both OKX and Binance at the same time?

Notcoin is not developed by our team. It was created by an independent community team. The launch yesterday was very successful, and the entire community is very excited, with an impressive buildup before the launch. The feedback has been very positive.

We did encounter some issues. Even Bybit experienced downtime due to the high traffic brought by Notcoin's launch. The wallet on Telegram also faced some problems, and the claiming function was not working properly.

As for why it is listed on both OKX and Binance at the same time, it is because this is the largest web3 game launch in history. No web3 game has ever grown to 35 million users in just three months. Considering Axie Infinity, which was once considered the largest web3 game, it only had 2 million daily active users at its peak. In contrast, Notcoin had 6 million daily active users during the mining phase, with 600,000 users online playing at the same time. This is a remarkable milestone for the ecosystem, proving that projects aimed at scaling and attracting millions of users can achieve this on platforms like Telegram.

Exchanges want to be part of this significant moment. OKX, Binance, Bybit, and other exchanges recognize Notcoin's vision of "maybe nothing." This slogan "maybe nothing" is because Notcoin has never claimed to be something important, even suggesting that users might be wasting their time. But on the contrary, it has proven to be quite significant.

What are the main applications in the TON ecosystem?

Telegram is an important part of the TON ecosystem. One of the first major use cases of the TON blockchain is Fragment.com, an application developed by Telegram itself. Fragment.com allows you to purchase your Telegram username as an NFT. This is a groundbreaking feature because it enables you to own your social media username, which is a first in social media history. This concept is similar to owning valuable real estate on the blockchain. For example, there is only one username "@crypto" on the entire Telegram platform, and you can associate a small application with that username.

I compare this to buying land in central London in the 1920s. At that time, you could build various buildings to increase its value. Similarly, owning a valuable username on Telegram can attract traffic and enhance the visibility of your project, as Telegram users interact with it daily. This makes Fragment.com a game changer and one of the main applications in the TON ecosystem, with a total trading volume of about $300 million since its launch.

Another important application is @wallet. This is the main wallet within Telegram, allowing users to send and receive USDT, Bitcoin, TONcoin, and now Notcoin directly in Telegram DMs. This facilitates instant and borderless payments. For example, I can seamlessly send any amount of money from London to Asia. The goal of this wallet is to make global payments almost free and instant, potentially enabling fiat-to-fiat transactions within Telegram, without users needing to know they are using blockchain technology. This could revolutionize the way people make cross-border remittances, making it extremely convenient.

Notcoin is another recently launched important application that has reached 35 million users. It has now entered a phase where project parties can purchase Notcoin and use it as a reward for completing on-chain tasks. In the initial phase, Notcoin's mining game was very successful, attracting thousands of users overnight. This proven model will continue to drive traffic and incentivize user participation in the TON ecosystem.

Is the founder of Telegram a true supporter behind TON?

Telegram is indeed the original creator of the TON (The Open Network) blockchain and drafted the foundational white paper and technology. However, due to regulatory issues with the SEC during the ICO, Telegram had to cease its direct involvement, return ICO funds to investors, and pay fines. At this point, Telegram handed over all development rights and project control to the community.

Community developers, now part of the TON Foundation where I am, took over the project from there. At that time, there was not even a mainnet; they had to develop and launch it from a relatively unusable state to its current state. This community-driven approach has been crucial in advancing the current capabilities of the TON blockchain.

While Telegram no longer directly develops the TON blockchain, it remains an important supporter and partner. Telegram has built applications on the TON blockchain, such as Fragment.com and the upcoming NFT stickers. They have also integrated TON blockchain functionalities into Telegram, such as wallet integration in the settings menu. This collaboration is vital as it provides millions of Telegram users with access to blockchain technology.

Telegram's mini-app platform is open, allowing anyone to build mini-apps, not just those based on TON. However, TON has a unique integration with Telegram through TON Connect, enabling seamless blockchain interactions within Telegram. This integration aims to make blockchain applications easy to use without leaving the Telegram app.

The collaboration between the TON Foundation and Telegram is mutually beneficial. For Telegram, it drives new user growth and attracts developers to build applications on its platform. For TON, it provides a broad user base and a valuable digital environment for blockchain applications. This collaboration aims to leverage Telegram's extensive influence and TON's blockchain capabilities to create the first web3 global super app.

Why hasn't Binance launched TON yet? Is there any communication regarding this matter? Is it possible for it to launch in the future?

Due to confidentiality agreements, I cannot comment on ongoing discussions. These confidentiality terms prevent us from disclosing any details about current or potential communications regarding the launch of TON on Binance.

While I understand your curiosity, we must respect these confidentiality agreements and cannot provide specific information on this matter at this time.

Is there any interesting story about the collaboration between TON and USDT? How did this collaboration come about, and what are the future goals?

The collaboration between TON and USDT is an important milestone for both platforms. The announcement of USDT launching on TON was made by Pavel Durov at the Token 2049 conference in Dubai in April. This collaboration is a strategic fit, combining the world's largest stablecoin with a highly scalable blockchain and a massive messaging platform like Telegram. The goal is to provide financial services to the unbanked and offer a stable currency to emerging markets as a hedge against inflation.

An interesting story about the origins of this collaboration involves Paolo Ardoino, the CTO of Tether (USDT). He was introduced to TON by community members at a restaurant. They explained how TON would become Telegram's main blockchain partner and suggested that USDT could leverage this collaboration to reach Telegram's vast user base. This initial introduction sparked further discussions, and Paolo Ardoino pushed for the integration of USDT on TON and Telegram. He recognized that through Telegram's messaging platform, USDT could reach unbanked populations that traditional marketing channels struggle to access, thereby expanding USDT's market share.

Since its launch, it has achieved tremendous success. Since the announcement in April, the circulating supply of USDT on TON has reached $275 million, with approximately 75,000 users holding USDT on the blockchain. This growth far exceeds initial expectations, with the first-year target of $100 million in circulating supply being tripled in just four weeks.

Future goals include continuing to leverage Telegram's influence to expand USDT's user base, particularly in emerging markets. By integrating USDT into the TON ecosystem, this collaboration aims to provide seamless, borderless financial services to a broader audience, making stablecoins more convenient and practical for everyday use.

This collaboration is a prime example of how blockchain technology and stablecoins can work together to address real financial challenges, especially for the unbanked. The momentum of this growth is encouraging, and this collaboration is expected to achieve even greater success in the future.

Is TON more focused on the Asian market? Are there any regulatory restrictions in Europe and the US markets?

We are indeed more focused on markets where mini-app developers have a strong presence, particularly in Asia and the CIS region. These markets are very familiar with super apps, which are popular and widely used in these areas. For example, Line and KakaoTalk in Asia, as well as VK in Russia, have already established super app models. Developers and users in these regions understand the concept of integrating multiple services into a single messaging application, making it easier for us to introduce and expand our solutions.

Our strategy is to leverage this familiarity by enabling blockchain functionalities for existing mini-app developers. These developers can significantly enhance their revenue and user engagement by integrating with the TON blockchain while accessing Telegram's vast user base.

We recently participated in the Hong Kong Web3 Festival, which validated our approach. The feedback was very positive, and developers showed great interest in our technology roadmap and market support. Particularly in Asia, developers are enthusiastic and understanding about participating in the global Web3 super app movement through Telegram.

Regarding regulatory restrictions in Europe and the US markets, we are very cautious about different regulatory environments. While I cannot comment on specific restrictions, it is clear that these regions have stricter regulatory frameworks for blockchain and cryptocurrency projects. This is also why our focus remains on regions that have a more favorable and understanding attitude towards blockchain innovation.

The momentum in Asia and Eastern Europe is growing, with developers eager to build and expand applications on the TON blockchain. Although we are still in the early stages of ecosystem development, with only a few hundred applications and no single killer app exceeding 100 million users, our strategy and narrative are solid. As we continue to grow and validate our approach, we expect further expansion and success in these key markets.

The inequality between developers in the East and West is indeed an important issue, as Eastern developers often do not have access to the same funding as their Western counterparts. Most venture capital occurs in the West, putting Eastern developers at a disadvantage. This is why we focus on Eastern Europe and Asia. We provide a platform that attracts users, making any venture capital interested in applications with large user bases (like ten million or twenty million users). Building on platforms like TON and Telegram allows these developers the opportunity to reach the same stages as their Western peers.

We have a project called Open League, which is our ecosystem growth strategy. This project has exceeded my expectations. Open League is a competition across the ecosystem where projects compete based on their performance metrics, such as Total Value Locked (TVL) and user base growth. Successful projects will receive TON Coin as a reward.

Another benefit of Open League is the LP enhancement provided by the TON Foundation, which increases the liquidity pools on decentralized exchanges (DEX), making the tokens of participating projects more attractive. This increased liquidity sparks interest and enthusiasm for these projects. Unlike traditional foundation grants that decide funding, Open League offers a transparent system with clear rules. Projects that follow these rules and perform well can earn substantial rewards. For example, in the recently concluded Season 2, the top projects received rewards totaling $375,000. This approach is fairer and encourages ongoing development and community participation.

Additionally, we will launch the Open League Summer Cup, which includes 13 hackathons held in 13 countries, including Hong Kong and Taipei. These events bring together those with ideas for building on TON, allowing them to showcase and compete for a share of $2 million in prizes. Successful participants can enter Open League, attracting significant user interest and engagement.

Since the launch of Open League in March, the results have been impressive. Daily active wallets increased by 725%, DeFi TVL grew by 800%, and the number of liquidity providers increased by 765%. Daily trading volume on our DEX grew by 1,038%, and the number of token holders rose to 1.6 million, an increase of 13%. These metrics demonstrate the effectiveness of the program in driving ecosystem growth. So far, we have announced a total of 30 million TON (approximately $20 million) in rewards for Open League projects and their users. Season 3 just launched two days ago, and we look forward to seeing continued growth and innovation.

How is the distribution of TON tokens? Do early miners hold a large amount of tokens?

Since the TON Foundation is not the original issuer of TON Coin, we rely on publicly available on-chain data to understand its distribution. According to Token Terminal, there are currently 17.11 million addresses holding TON Coin. Initially, a large portion of the token allocation was given to a few large holders. However, many of these holders have not actively circulated their tokens, as they prefer to hold them long-term.

To clarify the circulating supply situation, the community implemented two major initiatives. First, at the beginning of 2023, the community and validators conducted an on-chain vote to freeze the wallets of inactive miners. These wallets accounted for about 21% of the total supply, and now these tokens are locked until February 2027.

Second, the community initiated the TON Believers Fund, allowing TON holders to lock their tokens for five years—two years locked, three years vested. Users can choose to donate or deposit TON into a smart contract, and depositors will receive rewards from the donated TON. This initiative has been very successful, leading to an additional 26% of the supply being locked for five years.

These initiatives together lock up about 47% of the total supply. Open League also helps address this issue by actively distributing TON Coin to community members and projects. This system encourages early holders to donate their TON Coin to grow the ecosystem and distribute TON Coin to the most active and valuable participants.

Open League decentralizes the supply over time, rewarding the most valuable projects and users. We expect this process to continue over the next two to three years, further achieving supply decentralization.

Another way to decentralize the supply is through Telegram advertising. Telegram's advertising platform shares 50% of its ad revenue with channel owners in the form of TON Coin. Advertisers pay in TON Coin, and creators receive rewards in TON Coin. This system allocates TON Coin to channel owners and further decentralizes the supply over time.

While we need to find the best ways to protect the ecosystem, initiatives like Open League and Telegram advertising are crucial. With 47% of the supply locked until 2027, we have laid a solid foundation for decentralization and growth of the TON ecosystem.

What important milestones has TON achieved this year?

I can share some key factors driving TON's growth. The first important milestone is the launch of Open League in March. Since then, our metrics have shown tremendous improvement. March 4 marked the start of Season 1 of Open League, which was a period of rapid progress for us.

Another significant milestone is the integration of the wallet into the Telegram settings. This brings us closer to seamless integration with Telegram. Additionally, Telegram's announcement of building its advertising platform on the TON blockchain is also a major advancement. This is a unique case of such a large-scale advertising platform being built on blockchain technology. Advertising is the dominant application on the internet, with major companies like Facebook, Google, and Amazon deriving most of their revenue from ads. Now, with Telegram's blockchain-based advertising and generous revenue-sharing plan (offering 50% to creators within Telegram), this is a groundbreaking development.

The launch of USDT on TON at Token 2049 is another significant event. It simplifies borderless payments using USDT, as the largest stablecoin, allowing for free and instant transfers within Telegram. This is a use case with immense potential, and I look forward to seeing its full impact.

Looking ahead, the launch of Telegram stickers on TON is an exciting development. Similar to the NFT avatar craze in 2021, NFT stickers on TON and Telegram could revolutionize the ecosystem. These stickers have emotional value and practical utility, allowing users to showcase them in their daily messages. We are already collaborating with major NFT projects to achieve this goal.