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TON this public chain, bear market performance?

Leo

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"Can TON be the bear light?"

Original author:Jake Pahor, DeFi researcher

Leo, Blockbeats

One of the most discussed projects in recent circles is the Telegram Open Network (TON), which is more eye-catching because it is backed by Telegram. Can TON use Telegram's 550 million users as a step to become a "bear market light", or can it start high and move low? A bad hand? DeFi researcher Jake Pahor wrote an article about TON's prospects, compiled by BlockBeats:

Digging into TON, what's my rating like?(As of 20 December 2022)

TON token Price: $2.25 (TON price is about $2.50 as of this post)

Market value: $3.3 billion (rank 22)

PoS consensus

Highest price so far: $5.29; Lowest price: $0.52;

The Open Network (TON) is the layer 1 blockchain solution developed by the Telegram messenger team in 2018. The TON token is the chain's native token, which is mainly used to pay transaction fees and ensure network security as a margin for the verifier. TON is unique because it is one of the few crypto tokens that use a mix of PoW and PoS consensus mechanisms, and the project nearly collapsed in May 2020 when development was halted after the team agreed to a settlement with SEC regulators and pay a $18.5 million fine.

In order to keep the project alive on Telegram, Telegram team put all the available tokens in the network into smart contracts, anyone can mine under the same conditions, TON's IDO was created by chance. Now marked as IPoW-Initial Proof of Work, the chain has now fully converted to PoS and is very active, being one of the best performing tokens during the 2022 bear market.

income

There isn't a lot of data available on TON's revenue yet, but I expect to find it on token terminals soon. Similar to other layer 1, revenue and demand are primarily driven by on-chain transaction fees. Current demand for TON comes from:

- Transaction costs

- Payment

- Telegram/TON domain name service

-Whale Club NFT

There is still not enough available data, so I have to give TON a 6 in terms of income.

Treasury

There is not much information about the size and composition of the TON Foundation, however, they raised about $340 million in the TONcoin and TAV funds, which are given in the form of grants and IDO to projects on the promising TON network, The original IDO was launched through TONStarter, a startup platform that sells tokens for promising venture capital projects.

Overall, I'd give the vault a 6.

Token economy

The initial supply of 5 billion TON tokens is uncapped and will grow at a rate of about 0.6% per year. These tokens are used to reward verifiers for keeping the network secure. Currently, about 8.2% of the APY can be pledged. Then some or all of their shares would be cut and an equal amount of TON destroyed, reducing the supply of TON in circulation.

Supply Statistics for Coingecko (as of 19 December 2022)

- Revolving supply = 1.47 billion pieces

- Total supply = 5.06 billion pieces

- Market value = $4.1 billion

-FDV (fully diluted market value) = $14.07 billion

- Market value /FDV= 0.29

Token Economy I give 8, TON has a relatively low inflation rate, the only concern is the TON Foundation/Topwhale selling pressure.

Lock-up funds

The creation and initial offering of TON Tokens is very unique and similar in some ways to Bitcoin, in June 2020, all TON (98.55% of the total supply) can be used for mining, which is then put into special smart contracts that allow anyone to participate in mining until June 28, 2022, The last TON token was dug up, marking the successful end of TON IDO, which means that all the tokens are in the hands of miners. The TON project chose not to conduct ICO, IEO or any other type of token offering, let alone worry about the token unlocking schedule. But it's worth noting that the early whales had a TON of tokens and, overall, locked in nine points of money.

Use case

There are many similar POS layer 1 competing with TON for market share. TON's advantage is that it is backed by the potential adoption of Telegram messenger, which currently has more than 550 million active users and is growing rapidly, With nearly 100 million transactions already processed on the TON chain and more than 1.7 million unique accounts, up 211% in the last 6 months, it is now possible to seamlessly trade TON Tokens between Telegram users, which will further boost adoption. Recently, TON launched a domain name auction, Bids can be made for the popular TON domain, with the highest auction price currently set at 189,000 TON ($500,000).

The Whale club NFT is becoming more and more popular, with a floor price of 389 TON, which gives you a Whale Club membership and several of the features shown below.

TON has just launched in DefiLlama, followed by growth in its TVL, and has just launched the first Dex on the TON networkSTON.fiIf TON can use Telegram messenger to boost its adoption and growth, it has a very promising future. Use case 9.

Road map

With the launch of TON Defi, Nominees, Developer program, DNS, and TON Pay, 2022 is a big year for TON, 2023 is targeting BTC and EVM Crosschain, and it would be nice to have more disclosure on the long term plan/vision, 6 points for the road map.

Team and capital

There are several major organizations driving the development -- the TON Foundation and the TON Society. TON prides itself on being a decentralized, open source community of experts, so it's hard to find any clear organizational structure, but here are a few key players in the project:

-Anatoliy Makosov & Kirill Emelyanenko- Founding Devs

-Steve Yun & Andrew Rogozov -Founding members of TON Foundation

-Tal Kol & Oleg Andreev - TON ambassadors

-Manuel Stotz & Bill Qian - Board members of TON Foundation

There is also a very active community of developers and projects on TON, including the TON whales club, which will be mentioned below.

As I mentioned earlier, there is currently a $340 million fund to provide community grants to the network, a positive move to encourage building projects on the chain, teams and funding: 8 points.

All in all, TON is a very promising project that increases the chances of adoption by leveraging Telegram messenger, which is one of the best performing tokens in a tough 2022. While I don't own TON yet, it will be on my 2023 watch list, I will find a better entry point for TON, and in my evaluation, the average score for the project is: 7.6.

This article is only for research and study, and does not constitute any investment advice. Under the environment, 2023 requires more cautious investment.