Users and validators of Telegram’s previously created layer-1 blockchain, The Open Network (TON), voted to suspend Telegram-created miner wallets, according to a February 22 community vote. From 4 years ago, if they were inactive and never traded. The decision resulted in the suspension of 1,081,389,416 Toncoin (TON), worth an estimated $2.58 billion at press time, or more than 20% of all tokens in circulation.
Validator voting begins on February 21, 2023, after the first two rounds, without a decisive third round. The TON Foundation requires miners to demonstrate their activity by executing transactions on the TON blockchain on December 17, 2022. Since the announcement, 24 of the 195 dormant addresses have been activated. Thus, voting involved the remaining 171 addresses (less than 0.009% of the total number of web wallets), holding a total of 1,081,389,416 TON. These addresses will be suspended for 4 years after today’s vote.
As announced by the developers, TON distribution will begin in July 2020, when 98.55% of the total supply will be minted for anyone to participate. This approach, housed in a special “Giver” smart contract, helps TON benefit from the decentralization provided by PoW while preserving the PoS blockchain. By suspending the wallet, the developers say that the amount of TON currently in circulation will become clearer and that the “community actively participating in the open-source project will continue to grow and grow.”
The TON community has long speculated that access to these dormant wallets may have been lost. Some say that the existence of unspent TON tokens only increases the insecurity of network participants. TON is used as the gas fee required to access decentralized services on the network. Telegram abandoned TON development about three years ago after the SEC accused the company of violating securities laws in its $1.7 billion ICO in 2018. The project has since been transferred to the developer community.
The price of the TON native token has risen by almost 10% since the results of the vote were announced. At press time, TON is trading at $2.40, maintaining a 6% profit on the day.
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As reported by Cointelegraph