Telegram Limits Its TON Holdings at 10% Following Channel Owner Rewards Rollout

Introduction

In a recent move, Telegram has announced it will cap its holdings of Toncoin (TON) at 10% in response to concerns over the potential concentration of the cryptocurrency within its ecosystem. This decision coincides with the rollout of a new rewards system for channel owners, marking a significant shift in how Telegram manages its cryptocurrency assets and engages with its user base.

Background of TON and Telegram’s Holdings

Toncoin (TON) is the native cryptocurrency of The Open Network (TON), a blockchain originally developed by Telegram. Despite stepping back from direct development due to regulatory pressures, Telegram has continued to be a significant player in the TON ecosystem. The company’s large holdings in TON have been a point of concern for the community, leading to fears about centralization and control.

The Decision to Cap Holdings

On February 29, 2024, Telegram co-founder Pavel Durov announced that the company would limit its TON holdings to 10% of the total supply. This decision aims to address the community’s concerns about the potential risks associated with the company holding an excessive share of TON. Durov acknowledged that the exclusive use of TON for advertisement payments had led to an unhealthy concentration of the tokens within Telegram’s control.

Implementation Strategy

To mitigate these risks, Telegram plans to sell its excess TON holdings to long-term investors at discounted rates. The sales will be conducted under a lockup and vesting plan spanning one to four years. This approach is designed to ensure that a significant portion of the TON supply remains locked up, thus stabilizing the ecosystem and reducing volatility.

Telegram has also streamlined the process for these sales, setting up a dedicated email address for potential investors with a minimum investment of $1 million. This initiative is targeted at large-scale investors who are interested in supporting the long-term stability and growth of the TON ecosystem.

Channel Owner Rewards Program

In tandem with capping its TON holdings, Telegram has launched a new initiative to split ad revenue with channel owners. This program incentivizes content creation and community building within the app by offering financial rewards through the TON blockchain. Channel owners will receive a share of the ad revenue generated from their content, with payments exclusively made in TON.

This move is expected to boost the use of TON as a transactional currency within Telegram, driving further adoption and integration of blockchain technology into the platform’s operations.

Market Reaction and Impact

Following the announcement, the price of TON surged by over 50%, reflecting the market’s positive response to the measures aimed at decentralizing the token’s holdings and enhancing its utility. The cap on Telegram’s TON holdings and the new rewards program are seen as steps toward a more decentralized and robust ecosystem, which could attract more users and investors to the TON network.

Regulatory and Strategic Implications

Telegram’s actions come at a time when regulatory scrutiny over cryptocurrency holdings and transactions is intensifying globally. By capping its holdings and introducing structured sales and rewards programs, Telegram aims to demonstrate its commitment to transparency and regulatory compliance. This strategic move could serve as a model for other blockchain-based projects looking to balance innovation with regulatory requirements.

Future Prospects

Looking ahead, Telegram’s decision to cap its TON holdings and roll out financial rewards for channel owners could have far-reaching implications for the cryptocurrency and blockchain space. These measures are likely to enhance the attractiveness of the TON ecosystem, encouraging greater participation and fostering a more dynamic and decentralized network.

The success of these initiatives will depend on the effective implementation of the sales and rewards programs and the continued engagement and support of the Telegram and TON communities. As the market evolves, Telegram’s approach to managing its cryptocurrency assets and incentivizing content creation could set important precedents for the broader digital economy.

Conclusion

Telegram’s decision to cap its TON holdings at 10% and introduce a rewards system for channel owners marks a significant development in the cryptocurrency space. By addressing concerns over token concentration and incentivizing content creation, Telegram is taking proactive steps to foster a more decentralized and robust TON ecosystem. These initiatives not only enhance the utility and stability of TON but also position Telegram as a forward-thinking player in the digital asset landscape. As the market continues to grow, Telegram’s strategies could have a lasting impact on the future of cryptocurrency adoption and blockchain technology.