Key Points

The combination of the TON blockchain and Telegram presents a unique opportunity for large-scale blockchain adoption, as Telegram has 900 million monthly active users, far exceeding the current Web3 user base.
The TON ecosystem offers an easy-to-use cryptocurrency experience through Telegram mini-apps, including gaming, lending, DEX, and more.
TON is exploring a new Web2.5-Web3 business model that combines financial attributes, network effects, and user experience to create a win-win situation for developers and users.
TON has seen significant growth in the first half of 2024 and will continue to grow the DeFi ecosystem in the second half of the year, with total stakes, trading volumes, and on-chain users expected to rise.

If we are not building Web3 and blockchain for mass adoption, then what is the point?

We have come a long way, from Bitcoin’s role as a store of value to Ethereum’s programmable blockchain, and now to Arbitrum’s emphasis on scalability and LayerZero’s focus on interoperability. These innovations are huge ‘0 to 1’ leaps in blockchain technology. After several cycles, blockchain technologies have matured, making big breakthroughs more challenging. The current focus is on fine-tuning, perfecting tech, and expanding existing ecosystems—a shift from ‘1 to 10’. Eigenlayer, for example, enhances Ethereum by improving security with advanced slashing mechanisms and supporting a wide range of decentralized applications (dApps).

The ultimate goals of these projects are definitely to attract more users and more liquidity. But still, without real-world use cases, they will remain limited to the current Web3 community. Most blockchain projects start with an idea and try to build a community from scratch. But what if we approached the way we build projects differently by leveraging an established community? This approach makes more sense and is more efficient.

TON: Bridging Blockchain and Community

The Open Network (TON) is a layer 1 blockchain originally developed by Telegram and continued by the open-source community. TON is integrated with Telegram, a popular secure messaging app, making it the first blockchain with true potential for mass adoption. Telegram has over 900 million monthly active users, which is over 60 times larger than the current total Web3 user base of around 15 million, according to a report from a16z crypto.

What makes TON even more exciting is that it goes beyond just its distribution potential. Telegram is known for its commitment to privacy, security, user experience, and community engagement. These values, combined with TON’s technical capabilities and integration potential within Telegram’s ecosystem, position TON to become one of the largest crypto networks.

The collaboration between TON and Telegram can be illustrated through three key components:

Telegram: Everyone’s go-to communications platform, where your handle serves as a unique ID.
@wallet: The bridge that links messaging to crypto, making it possible for everyone to access cryptocurrency.
TON Blockchain: The layer of assets that underpins the banking system and other permissionless, decentralized operations.

The flywheel of TON has started to spin, especially when compared to other layer 1 blockchains. It is only a matter of time before we see mass adoption. With its deep integration into Telegram, TON can easily onboard millions of users, making sending crypto as easy as sending a text and dApps simple to use. TON is not simply a blockchain; it aims to become an integral part of everyday digital interactions.

Effortless Onboarding and User-Friendly Experience

Telegram simplifies access to mini-apps with @wallet, enabling users to easily buy, sell, or manage tokens and NFTs within the Telegram interface. This setup is accessible through Telegram settings and personal chats, making the process straightforward and user-friendly.

Telegram supports both custodial and non-custodial wallets based on TON. Users can choose to have full control over their keys or opt for TON’s self-custodial wallet, TON Space, which allows email backup instead of a seed phrase.

Mini-Apps: Gateway to Functionality

Within Telegram, users can explore a range of mini-apps integrated with cryptocurrency functionalities. These include crypto games, lending platforms, decentralized exchanges, and NFT platforms—all accessible directly through the Telegram app. There are over 900 projects on TON, most of which have built mini-apps available via the Telegram Apps Center.

Examples of these applications include Strom Trade, which has facilitated over $10 million in transactions, and Tonstakers, with over $249 million in total value locked. Social apps on TON are particularly popular, with millions of users engaging with “tap-to-earn” or “click-based products” within the ecosystem. For instance, Hamster Kombat has surpassed 50 million subscribers, making it one of the fastest-growing crypto applications in terms of daily active users.

Following Notcoin, Pixelverse, the creators of the popular game PixelTap, is set to launch their token on TON, marking the second major game to do so. Pixelverse offers a cyberpunk-themed, quest-based game that combines engaging gameplay with blockchain technology. The project has secured $12.5 million in funding from top-tier investors such as Delphi Digital, Galaxy, and Merit Circle. After attracting 50 million players to PixelTap on Telegram, Pixelverse will launch its PIXFI token. According to a recent tweet, $PIXFI will go live on “major centralized exchanges'' on July 18, with CoinEX being one of the confirmed platforms. The debut of $PIXFI is expected to generate significant buzz within the TON ecosystem.

Revenue and Ad Sharing Model

In February 2024, Telegram introduced a new revenue-sharing model, allowing channel owners to earn 50% of ad revenue displayed in their channels. This initiative supports content creators by providing significant earnings through ads purchased with TON tokens, which are also used to reward channel owners.

Telegram has expanded the use of TON tokens for purchasing usernames, numbers, and subscribing to Telegram Premium. The Fragment platform on TON allows users to purchase virtual phone numbers and custom usernames with a value of over $350 million in trading so far. The next development includes transforming Telegram stickers into NFTs for trading on TON.

This shift from traditional social media models creates a closer relationship between Telegram and its users, promoting a more equitable digital financial system.

Web2.5-Web3 Business Model

Recent developments in the Telegram ecosystem highlight its potential as a testing ground for a shift in crypto monetization. For instance, gaming is one of the sectors where traditional models are somewhat challenged by high costs and revenue sharing. By leveraging the TON blockchain, this opens up new possibilities for Telegram.

Crypto can replace traditional game distribution channels. A perfect example of that is games like Hamster Kombat and Catizen, which attracted attention and players without real expenses. Developers can quickly grow a user base through engagement and rewards with the assistance of tokens.

Since the listing of Notcoin on major centralized exchanges, more users have been attracted to the Telegram ecosystem because of the ease of monetizing crypto, which further increases engagement in subscribing to channels and clicking ads. This transition to a Web2.5-Web3 business model combines financial attributes, network effects, and user experience.

TON’s revenue naturally comes from the increase in token price. This revenue model bypasses the barriers typically faced by Web2 entrepreneurs, ensuring the mobile app experience for users remains smooth and uninterrupted without having to sacrifice user experience for higher profits. It also promotes shared success within the ecosystem. Game developers can recover costs early by selling in-game bundles or doing public sales on launchpads, with minimal costs mainly involving time and equipment. This creates a flywheel effect where the TON blockchain, developers, Telegram, and its community all benefit.

By lowering entry barriers and offering a direct monetization route, TON blockchain can drive mass adoption in the gaming industry and beyond to create a sustainable, user-driven ecosystem.

TON's Outlook for H2 2024

The goal for the TON blockchain in 2024 is to onboard 10 million active on-chain users. According to tonstat.com, TON has already reached 5.8 million monthly active users, thanks to traffic-driven mini-apps, upcoming applications, and airdrop farmers. This opens up significant potential for expansion, first-mover advantages, and network effects.

Howard, the Asia Lead of Developer Relations at TON Foundation, stated, "I think in the end, 80% of the traffic will be contributed by the top 20% of channels and TApps. So, we will see more projects reaching a highly competitive stage of traffic business."

Next Steps for TON

To gain a significant edge over competitors, maximizing traffic and user numbers is essential. The focus for TON should be on return on investment (ROI) and guiding teams to develop mini-app-based projects to capture the market quickly. It is highly likely that innovations like tap-to-earn combined with the launchpad model or prediction markets integrating social relationships with native mobile experiences will emerge. For example, Notcoin leveraged financial incentives to drive user interactions, a precursor to how financial attributes might change user behavior.

The TON ecosystem will be home to the most profitable projects due to its organic social viral growth, providing a platform for showcasing and promoting valuable NFTs and content.

Growing the DeFi Ecosystem

In the second half of 2024, the TON ecosystem will see significant progress in DeFi due to:

An increase in smart contract developers and frequent updates to the Tact language.
Mini-app teams delivering high-quality TON-related apps and exploring smart contracts.
The Open League and USDT have been launched on TON. Increased total value locked (TVL) on the blockchain, with more dApps and Oracle Price projects on the way, like Redstone.

As more teams build mini-apps and traffic increases, DeFi protocols on TON will align better with the market and amplify the network effect. Imagine Polymarket expanding rapidly with mini-apps on TON. This would not only bring a diverse range of prediction markets directly to users but also integrate seamlessly with Telegram, making it easy for users to engage without leaving the app. The TON ecosystem is likely to surpass FriendTech and Pump.fun due to its viral growth, providing a stage for NFTs and content.

Conclusion

Significant growth in the TON blockchain has been observed in the first half of 2024, but this is just the beginning. While the current focus is on mini-apps and tap-to-earn projects, there are still many untapped opportunities, including infrastructure development, payment solutions, DNS domains, DeFi, NFT marketplaces, stablecoins, and more.

The essence of the TON ecosystem is an HTML5 web2 company with blockchain added to the payment/settlement layer. Telegram provides the traffic, @wallet bridges Telegram and TON, and TON provides the settlement. Projects do not have to develop everything from scratch. Instead, they can simply integrate with TON, leveraging features such as blockchain-based settlement and access to Telegram user traffic. Even projects on other blockchains can benefit through integration with TON.

However, the true potential of TON and Telegram lies in their capabilities for DeFi and social integration. In the second half of 2024, we can expect substantial growth in DeFi and other on-chain projects within the TON ecosystem. Metrics such as TVL, trading volume, and the number of on-chain users are all anticipated to rise.

With its strong foundation and strategic focus on user experience and utility, TON is set to become a major player in the blockchain space. The future looks promising for TON, and the journey towards MASS adoption is well underway.

什么是Portal to Bitcoin (PTB)：DeFi结算的跨链解决方案