The Edge Podcast - Exploring The Open Network (TON)

In this episode of The Edge Podcast, which took place on August 17, 2024, DeFi Dad and Nomatic hosted Alenka from TON Foundation to discuss the rapid growth of the TON ecosystem, its connection to Telegram, key metrics like total value locked (TVL), the Open League incentive program, user onboarding processes, and more! Read our notes below to learn more.

Background

DeFi Dad (Host) – Host of Edge Podcast

Nomatic (Host) – Co-Host of Edge Podcast

Alenka (Guest) – Ecosystem Lead at TON Foundation

The Open Network (TON) – a decentralized and open internet platform made up of several components. These include: TON Blockchain, TON DNS, TON Storage, and TON Sites

TON Ecosystem’s Strategic Growth and Community Engagement

DeFi Dad introduces the podcast, highlighting TON’s impressive growth from $15 million to $750 million TVL this year. He mentions that TON leverages Telegram’s 900 million downloads to onboard new users to their ecosystem.
Alena introduces herself, describing her background in crypto research at university, focusing on topics like blockchain in real estate. She shares her experience running an accelerator for early-stage Web3 startups, which led to her meeting the TON Foundation team and eventually joining them.
DeFi Dad asks about the origins of TON and its connection to Telegram, admitting his initial skepticism about the project.
Alena explains that The Open Network (TON) was initially abandoned due to SEC issues but was taken up by an independent community. She clarifies that TON Foundation is a nonprofit organization registered in Switzerland, supporting ecosystem builders. Alena highlights that TON is the official Web3 partner of Telegram, but Telegram is not involved in chain development or ecosystem initiatives.
Nomatic asks about the biggest catalyst for TON’s growth in 2024 and how they track progress internally.
Alena mentions two main metrics they track:
- TVL: Currently at $750 million, aiming for $1 billion by January 2025.
- On-chain wallets: Goal of 500 million by 2028, potentially including off-chain elements like AdWallet accounts.
She attributes growth to several factors:
- Launch of native $TON use and incentive programs for liquidity pools, particularly $TON-$USDT pairs.
- The Open League, a long-term incentive program for TON builders and users.
Alena provides an in-depth explanation of the Open League:
- A competition for TON teams across different categories: DeFi protocols, dApps, tokens, and NFTs.
- Teams compete for large prizes each season, with transparent, real-time metrics.
- New teams can quickly rise to top ranks, such as YesCoin and Momo AI.
- Projects performing well in the token leaderboard receive additional incentives (up to $100,000 in $TON coin per season) for their liquidity providers, boosting APRs on DEXs.
- The program encourages community engagement and activity.
Alena estimates that up to 10% of TVL growth can be attributed to the Open League and its associated liquidity incentive programs.
She says that while DeFi protocols are ready to absorb more liquidity, additional incentives are needed. The TON Foundation is actively working on directing this liquidity and maintaining the ecosystem’s growth momentum.
Alena highlights the importance of not just achieving growth but maintaining it, highlighting the long-term goals of the TON ecosystem and the ongoing efforts to create attractive opportunities for users and developers.

The Open League: A Competitive Ecosystem in DeFi and User Onboarding in the TON Ecosystem

DeFi Dad asks for clarification on The Open League, specifically whether it involves users or dApps competing against each other.
Alena explains that The Open League primarily involves teams competing. Teams build products (e.g., games) and join leaderboards to compete for prizes. Winning teams can use the prize money for community airdrops, marketing, or exchange listings. Most projects prefer doing airdrops to reward their communities. Users don’t directly compete but can participate in other formats like trading competitions or as liquidity providers.
Nomatic asks Alena to walk through the user onboarding process for TON.
Alena describes the TON wallet inside Telegram. It’s developed by an independent team in the TON ecosystem and embedded into Telegram’s interface in certain regions where rollout has occurred. Users can find the wallet in Telegram settings and attachments in chats. Sending crypto (e.g., $TON or $USDT) to users can automatically activate their wallets.
Alena highlights key features and uses cases of the TON ecosystem. For payments, users can pay for various services (Steam, subscriptions, gift cards, VPN, digital SIM cards) inside Telegram with crypto. The wallet has a self-custody part called TON Space, similar to MetaMask. Other self-custody wallet options are available (TONKeeper, MyTONWallet, TONHub).
Alena discusses easy onboarding apps/games like Hamster Kombat, YesCoin, Notcoin, and Catizen. These create a new narrative for onboarding masses to blockchain using simple gameplay mechanics. She provides an example of Hamster Kombat, which lets users develop a virtual crypto exchange through card-based gameplay.
Alena explains how Notcoin pioneered this approach, rewarding users for simple actions and onboarding them to Web3 products. Notcoin’s token generation event (TGE) distributed 90% of tokens to the community, with average airdrops worth $200.
Alena highlights that these onboarding tools focus on simplicity and rewards, making it easy for users to engage with crypto without complex actions typically required by other projects. She mentions upcoming games and tools that are improving on these mechanics and creating more engaging experiences for users.

TON’s Growing Ecosystem: Strategies, Security, and Developer Attraction

Nomatic asks about the growing mindshare for users in the TON gaming ecosystem and what’s attracting Web3 builders to TON.
Alena confirms that distribution is the main reason, citing Telegram’s 900 million downloads as a ready audience. She mentions TON’s incentive programs, including grants and The Open League, as additional attractions for developers.
Alena discusses efforts to create automated and personalized tools, guides, and documentation to help developers understand TON’s technical aspects and business opportunities.
DeFi Dad asks about the blockchain elements and tech stack behind TON.
Alena explains that TON is a non-EVM L1 blockchain using two main languages: Tact and FunC. She highlights TON’s speed and scalability due to sharding technology, though notes that transaction costs are not necessarily a unique competitive advantage.
Nomatic asks about TON’s security and audits.
Alena confirms that the TON chain has been audited multiple times by Certik and other auditors. She advises users to research individual DeFi protocols on TON, as major protocols have undergone audits.
DeFi Dad asks how TON plans to sustain its growth trajectory.
Alena outlines several strategies:
- Continuing to develop DeFi opportunities to direct liquidity effectively.
- Working closely with major DEXs and helping new projects launch.
- Focusing on improving the utilization rate of TVL and increasing trading volume.
- Focusing on product development for Web2 audiences, leveraging the team’s experience in building viral products for large-scale audiences.
Alena stresses the importance of creating sustainable growth and retaining users long-term. She expresses the goal of showing users the full range of Web3 opportunities, including ownership, monetization of skills, community engagement, and having fun with friends.

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Show Information

Medium: YouTube (Video)
Show: The Edge Podcast
Show Title: Exploring TON: How The Blockchain Designed By Telegram Grew 50X This Year
Show Date: August 17, 2024