What Is Toncoin (TON)?
Toncoin is the native token of a decentralized blockchain called TON. The blockchain is a Layer-1 network developed by Telegram with the goal of attracting billions of users. It claims to offer incredibly quick transactions, low costs, user-friendly interfaces, and environmental friendliness.
If you’re interested in the current Toncoin price, don't forget to take a look at the TON price chart that is featured above.
The first version of TON was released in 2018 by the Dubrov brothers (the founders of Telegram). However, only in 2022, TON became a fully functional open network.
The TON blockchain has its own TON wallet that allows users to store their assets and promises fast and secure crypto transactions without any middlemen.
TON employs a Proof-of-Stake consensus mechanism. With this approach, TON holders can stake their coins, which gives them the authority to validate and add new blocks of transactions to the blockchain, as well as create their own validator nodes.
Based on the core TON criteria, as of 2022, the current annual rate of inflation is 0.6%. This inflation represents the amount that the TON community is paying the validators to keep the system running.
The Purpose of Toncoins
Toncoin crypto assets can be used in various ways. Firstly, TON coins are used to pay transaction fees. Secondly, TON coins can be staked by their holders this way securing the network. Besides, by staking the tokens, users can get staking rewards and voting rights. This leads to another purpose of Toncoin – governance. The tokens grant access to the decision-making processes concerning the development of the whole TON network.
However, apart from the main use cases, Toncoins can also be used:
- As a commission payment for processing on-chain transactions with smart contracts
- As a payment method for the services offered by dApps created on the platform
- As a ​​payment method for developing new networks and extra currencies
Though since the TON blockchain is still developing, there are many more use cases planned for Toncoins in the future.
Lastly, note that it is highly recommended to analyze the TON price chart above before purchasing any Toncoins. This step is crucial due to the Toncoin price's high level of volatility. Why is it volatile? Mainly because the Toncoin price, like the pricing of other crypto assets, is affected by shifts in the value of the whole crypto market, which results in the aforementioned volatility.
