Open Network Decentralized Finance Opportunity

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The Open Network (TON) has emerged as one of the most remarkable success stories in the blockchain space since 2024. From relative obscurity just over a year ago, this Layer-1 platform has rapidly ascended to a central position in the crypto industry’s imagination—driven by its deep integration with Telegram, one of the world’s most widely used messaging platforms.

This synergy has proven transformative. Unlike other major social media companies, Telegram has actively pursued Web3 integration and selected TON as its preferred blockchain infrastructure. The result? Explosive user growth for TON-based applications, particularly in the form of “tap-to-earn” games that have attracted tens of millions—and in some cases, hundreds of millions—of users at unprecedented speed.

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The Origins and Rise of TON

Launched in 2017 as the Telegram Open Network, TON was initially conceived as a way for Telegram to raise funds and achieve financial sustainability without external investors. Pavel Durov, Telegram’s founder, had self-funded the app for years and envisioned a WeChat-style super-app model: integrating social features with native payments, smart contracts, decentralized storage, and other Web3 services—all built on a custom blockchain.

At its peak hype during the ICO boom, TON raised $1.7 billion across two private sales in 2018, making it one of the most anticipated blockchain projects ever. However, in October 2019, the U.S. Securities and Exchange Commission (SEC) sued Telegram, alleging the sale of unregistered securities through its token offering. By June 2020, Telegram settled with the SEC, returning over $1.2 billion to investors and paying an $18.5 million penalty.

This legal setback came just as Telegram was preparing to launch the TON mainnet. Despite having a functional testnet and years of development under its belt, the company officially halted the project in May 2020 and handed over the codebase to the open-source community.

From there, independent teams continued building. The NewTON initiative, led by Anatoly Makosov and Kirill Emelyanenko, emerged as a leading force. In August 2021, Telegram transferred ownership of the official ton.org domain and GitHub repository to this group. Following the original whitepaper authored by Nikolai Durov (Pavel’s brother), they advanced the roadmap and transitioned the testnet into what is now known as the TON mainnet by May 2021.

The rebranded TON Foundation took stewardship of the network, and by late 2021, Toncoin—the native cryptocurrency—was listed on major exchanges, laying the groundwork for broader adoption.

Telegram re-engaged publicly with TON in 2022. It introduced username auctions on Fragment Marketplace using TON blockchain. Then, in September 2023, Telegram announced it would rely exclusively on TON for all future Web3 functionality and began integrating The Open Network’s wallet directly into the Telegram app.

By March 2024, Telegram launched ad monetization on channels using Toncoin, allowing channel owners to earn 50% of revenue from ads displayed—a powerful incentive for content creators.

These integrations catalyzed rapid growth. Games like Notcoin, launched on January 1, 2024, reached 35 million users by March. Hamster Kombat, another tap-to-earn mini-app, claimed 300 million total players by July and 94 million monthly active users in August—figures comparable to top-tier Web2 games like Fortnite and Subway Surfers.

This scale is unprecedented in crypto gaming. For context, Axie Infinity—the previous leader—peaked at around 2.7 million active users in late 2021. TON’s ability to onboard such massive numbers highlights the power of leveraging Telegram’s 950 million global users.

Monthly active addresses on TON surged from roughly 100,000 in September 2023 to 9.9 million by September 2024, surpassing Ethereum’s 5.5 million active addresses during the same period—and outpacing popular Layer-2 networks like Arbitrum, OP Mainnet, and Polygon PoS.

While metrics like active addresses can be inflated by bots, they still reflect meaningful engagement trends—and TON’s momentum is undeniable.

Mini-Apps, UX Innovation, and Viral Growth

The success of apps like Notcoin and Hamster Kombat isn’t just about Telegram’s massive user base—it’s about how these mini-apps leverage Telegram’s unique architecture to deliver seamless, viral experiences.

At the heart of this is Telegram Mini Apps, a framework that lets developers build interactive web applications accessible directly within Telegram via bots or links—no downloads required. Built with standard web tools (HTML, CSS, JavaScript), these apps can integrate deeply with Telegram’s ecosystem.

Mini Apps benefit from native access to:

When combined with TON’s built-in wallet, Mini Apps eliminate traditional crypto friction points:

Users can start playing or interacting within seconds—often earning tokens or points tied to future airdrops. These incentives are amplified through social mechanics: inviting friends, joining groups, liking posts—all rewarded with points that boost leaderboard rankings or unlock rewards.

This model creates a self-reinforcing loop: simple entry → instant gratification → social virality → exponential growth.

Notcoin pioneered this playbook; Hamster Kombat refined it. Both achieved massive scale by focusing on low-friction onboarding, game-like engagement, and social propagation—all powered by Telegram’s infrastructure.

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The Untapped Potential of DeFi on TON

While much attention has focused on gaming and social apps, we believe decentralized finance (DeFi) represents TON’s most transformative opportunity—especially in reaching beyond crypto-native users.

DeFi captured global imagination during the 2020–2021 bull run with promises of open, automated financial systems. Yet since then, progress has stalled. According to Artemis Analytics, DeFi-related tokens have fallen 72% from January 2022 to September 2024—underperforming meme coins (-35%) and smart contract platforms (-48%), while Bitcoin gained 42%.

User adoption remains limited. Dune Analytics data shows that even at peak activity in September 2024, decentralized exchanges (DEXs) across all chains saw only about 22 million unique monthly addresses—a number likely inflated by bots and multi-wallet usage.

Why has DeFi failed to go mainstream?

Key barriers include:

Most Web2 platforms have ignored or abandoned Web3 efforts—cutting off a critical path to scale.

TON changes this equation.

With Telegram Mini Apps + integrated wallet + built-in payment rails, TON solves core UX issues plaguing DeFi:

Moreover, games like Notcoin and Hamster Kombat have already distributed tokens to tens of millions of Telegram users—effectively onboarding them into crypto without friction.

This distribution advantage is crucial for DeFi because financial applications thrive on network effects:

With access to hundreds of millions of potential users, TON offers a rare chance to bootstrap real-world DeFi usage at scale.

Core Keywords:

Building the Future: DeFi Use Cases on TON

Several high-potential DeFi applications could flourish on TON:

1. Payments & Stablecoin Transactions

Telegram already supports peer-to-peer transfers via its wallet. Integration with USDT in Q2 2024 laid the foundation for broader stablecoin adoption—especially valuable in emerging markets where users seek dollar-pegged assets for remittances and savings.

Given Telegram’s popularity in regions like Southeast Asia, Latin America, and Africa—and its seamless mobile-first design—TON is well-positioned to become a leading platform for everyday crypto payments.

Future enhancements could include:

2. Social Trading & Investment DAOs

Mini Apps enable rich social experiences. Features like leaderboards, copy-trading, and community challenges can drive engagement in trading platforms.

Telegram groups naturally lend themselves to investment DAOs or angel networks—similar to existing models like echo.xyz. Targeted airdrops and reward programs can further incentivize participation in new protocols.

3. Core DeFi Protocols

While still early compared to Ethereum or Solana, foundational DeFi primitives are emerging:

There’s room for innovation: concentrated liquidity, modular lending pools, intent-based trading, MEV protection, restaking—all inspired by mature ecosystems but optimized for TON’s architecture.

Blum offers a compelling example. This Telegram-based DeFi platform uses a mini-app to let users earn points through gameplay and referrals—tied to an upcoming token airdrop. Already boasting 57 million active users, Blum demonstrates how DeFi can replicate gaming-style growth mechanics.

If successful in retaining users post-airdrop, Blum could set a blueprint for future DeFi adoption on TON.

Challenges Ahead

For TON’s DeFi vision to succeed, several hurdles must be overcome:

1. Developer Adoption

TON uses a custom virtual machine (TVM) and requires developers to learn FunC—a unique smart contract language. Unlike EVM-compatible chains that attract Ethereum developers easily, TON faces a steeper learning curve.

To compete, TON must invest in developer tooling, education, and ecosystem grants—mirroring Solana’s successful playbook. Projects like EVM-compatible TON Application Chains (TACs) could help bridge this gap.

2. Scalability & Uptime

TON relies on sharding for scalability—a complex approach that has seen limited adoption elsewhere due to cross-shard communication overhead and security concerns.

Recent network outages under high traffic highlight the need for robust infrastructure upgrades to handle internet-scale demand.

3. Smart Contract Security

With billions at stake, secure code is non-negotiable. While the core team can't audit every app, fostering a strong auditing ecosystem around TVM and FunC is essential.

4. Bot & Sybil Attack Resistance

Artificial inflation from bots threatens the integrity of user metrics and reward systems. Requiring verified Telegram accounts helps—but more advanced solutions like proof-of-humanity may be needed long-term.

5. Platform Risk

Developers may worry about relying on a centralized entity like Telegram. While current incentives align—TON contributes significantly to Telegram’s revenue—the risk of future policy changes persists.

A move toward greater decentralization at the application layer could mitigate these concerns and fulfill Web3’s core promise: reducing reliance on gatekeepers.

Frequently Asked Questions (FAQ)

Q: What is The Open Network (TON)?
A: TON is a scalable Layer-1 blockchain originally developed by Telegram and now maintained by the open-source community. It powers decentralized apps via Telegram Mini Apps and supports fast, low-cost transactions.

Q: How does TON integrate with Telegram?
A: Telegram natively integrates the TON Wallet into its app, allowing users to send/receive Toncoin, interact with Mini Apps, buy usernames via Fragment, and earn from channel ads—all without leaving the messenger.

Q: Can I use DeFi apps on TON?
A: Yes. Platforms like Ston.Fi (DEX), EVAA (lending), and Blum (multi-functional DeFi) are live on TON. With millions already using Mini Apps, DeFi adoption is poised for rapid growth.

Q: Is Toncoin available on major exchanges?
A: Yes. Toncoin is listed on leading exchanges including OKX, Binance, Kraken, and Bybit—making it accessible globally.

Q: How does TON prevent bot activity?
A: While challenges remain, Telegram account verification provides a stronger identity layer than most blockchains. Future improvements may include behavioral analysis or proof-of-personhood systems.

Q: Why hasn't TON gained more attention from institutional investors?
A: Despite strong fundamentals and user growth, awareness outside crypto circles remains limited. As real-world use cases expand—especially in payments and social finance—that perception is likely to shift.

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Conclusion

The convergence of Telegram’s distribution power, TON’s scalable infrastructure, and innovative Mini App UX creates a unique catalyst for mainstream DeFi adoption.

While challenges remain—from developer recruitment to security and scalability—the foundation is strong. If the ecosystem continues evolving with user-centric design and robust incentives, TON could become one of the first blockchains to bring decentralized finance to hundreds of millions of non-crypto-native users.

We’re watching closely—and optimistic about what comes next.