TON Foundation proposes to burn 50% of validator rewards

TON_etc-min
TON_etc-min

The TON Foundation proposed a deflationary mechanism that involves burning 50% of the rewards of the validators. It is reported by The Block.

The proposal is similar to Ethereum’s EIP-1559 strategy, which resulted in lower network inflation. It is likely that such an initiative will be less effective for TON due to low transaction fees.

“In the short term, the deflationary impact may seem modest and is estimated at around 350-400 Toncoins per day, given the daily issuance rate of 71,000 coins,” said Kirill Emelianenko, lead developer of the TON Foundation.

As the network grows, that number could “significantly increase,” he said, resulting in a notable reduction in inflation for both the total and circulating supply of Toncoin.

Emelianenko added that the amount of tokens burned may differ from the proposed 50%, depending on the decision of the blockchain validator community.

Recall that in December 2021, Pavel Durov publicly supported the Toncoin team. The project token reacted with a 46% increase.

In the fall of 2022, the sale of Telegram usernames for Toncoin started on the Fragment platform. Later, the messenger opened the possibility of registering anonymous accounts using blockchain-based numbers.

In February 2023, the developers of the network presented a roadmap for 12 months.

In May, TON established a $250 million investment fund to fund DeFi projects in the blockchain ecosystem.

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