Last Toncoin Mined Before Switching to Proof-of-Stake
- Following a lawsuit by the U.S. Securities and Exchange Commission, messaging app Telegram abandoned its blockchain project in 2020. The changeover signifies the continuation of the project’s development by the TON Foundation (SEC).
- The Bitcoin network’s PoW process has the limitations of being sluggish and energy-intensive, making it expensive and requiring a lot of time for transactions to be validated. The second-largest cryptocurrency in the world, Ether (ETH), is transitioning to a PoS architecture.
- The TON Foundation, which looks after Toncoin and its ecosystem, referred to this combination as an “initial proof-of-work” (IPoW) method and asserted that it produced a hybrid PoW/PoS system that offers the best of both worlds.
As the last TON was mined, many in the community celebrated the momentous occasion. It marked Toncoin’s successful transition from a PoW to PoS model and signaled a new era for cryptocurrency.
While some were sad to see the end of mining, many more were excited about what this change meant for the future of Toncoin. With a decrease in new TON entering circulation, holders can expect an increase in value as demand outpaces supply.
This is sure to be a boon for anyone invested in Toncoin and will likely result in increased adoption as more people flock to this promising cryptocurrency.
The TON Blockchain
The TON blockchain is built on a foundation of PoS technology, which allows for a more democratic and decentralized distribution of its tokens. However, its initial token release was enabled through mining rather than the coin offering typically associated with PoS tokens. This prevented a small number of participants from amassing many coins and ensured wider distribution.
That said, the recent events surrounding Toncoin are very positive for the long-term prospects of the coin. The burning of such a large percentage of the total supply will have a deflationary effect on prices, and as more and more people begin staking their coins, it will become increasingly difficult to obtain new ones. This should lead to increased demand and higher prices over time.
Of course, nothing is ever certain in cryptocurrency. The markets are highly volatile, and anything could happen in the short term. However, if you’re looking to invest in Toncoin for the long haul, then these recent developments should be very encouraging.
Barry Pene is a stern blockchain research/copywriter. Barry has been trading cryptos since 2017 and has been invested in issues that would put the blockchain industry on the right pedestal. Barry's research expertise cuts across blockchain as a disruptive technology, DeFis, NFTs, Web3, and reduction of energy consumption levels of cryptocurrency mining.
