The decision by Telegram to exclusively align its in-app Web3 ecosystem with The Open Network has been met with mixed reactions across the blockchain community. While some consider it a bold and strategic move, others question its implications for decentralization and market stability. Steve Yun, a key board member of the TON Foundation and founder of TVM Ventures, a $100 million fund focused on TON, has expressed strong confidence in its potential despite challenges such as the significant drop in Toncoin’s market cap. Through his insights, Yun paints a compelling picture of why TON’s exclusivity is a calculated step forward, driven by scalability, security, and adaptability to Telegram’s unique ecosystem.
Aligning TON with Telegram’s Needs
Telegram’s decision to make TON the exclusive blockchain network for its Mini Apps marks a deeper commitment to an ecosystem designed to meet the platform’s vast user base, which exceeds 950 million. According to Yun, this alignment isn’t merely a preference but a necessity to accommodate the extraordinary demands on network capacity. Unlike other blockchains that lack sharding and thus struggle under high transaction volumes, TON boasts scalability built into its very foundation. Yun explained, “On-chain products built on a blockchain without sharding will not be able to handle the number of transactions required from the mass audience.” From its inception, TON was engineered for mass adoption, making it a natural choice for a platform as expansive as Telegram.
Equally critical is the matter of security. Yun emphasized the potential risks of integrating multiple blockchains into Telegram’s Web3 ecosystem. Solutions employed by less scalable blockchains, such as side-chains or off-chain mechanisms, could severely compromise security. In this context, focusing exclusively on TON enables Telegram to maintain the integrity and security of its ecosystem while scaling effectively to meet user demands.
Decentralization and Blockchain Compatibility
Despite concerns regarding limited decentralization, Yun underscored that the TON blockchain remains permissionless and accessible to all. This openness ensures that the broader community can still participate and innovate within the ecosystem without significant barriers. Notably, Telegram’s exclusivity arrangement for Mini Apps does not extend to bots, a decision that allows bots to interact with multiple blockchains. Yun elaborated, “Telegram has provided an exemption for bots that do not have the Mini App component to continue to operate using other blockchains.”
While Yun initially advocated for a stricter embrace of TON for even bot integrations, Telegram opted instead to offer flexibility for developers. He likened this approach to a freemium business model, where building on the bot ecosystem is open to all blockchains, but developers looking to integrate a web interface must operate within TON. This balance not only avoids alienating a wider developer community but also encourages broader participation while guiding more advanced features into TON’s ecosystem. Addressing concerns, Yun observed, “This isn’t so bad except for probably a dozen projects who might have entered into some exclusive agreements to use specific chains.”
A “Bullish Sign” for TON’s Expansion
For Yun, the exclusive partnership between Telegram and TON is a clear signal of potential growth and opportunity. As Telegram’s ecosystem evolves to support goods and services tailored for its massive user base, Yun predicts that developers seeking access to this expansive audience will naturally turn to TON. “More builders, more use cases to TON,” he remarked, envisioning an ecosystem that expands with each new application and feature.
However, TON’s journey is not without its hurdles. Since reaching an all-time high market capitalization of $25 billion in April 2024, Toncoin has faced a dramatic 64% decline, according to data from CoinGecko. Similarly, the total value locked (TVL) in the TON ecosystem has plummeted by 73% since its peak in July 2024, as reported by DefiLlama. While external factors and market dynamics have contributed to these declines, Yun believes the TON community could have mitigated the impact with greater focus and collaboration. “I think TON could have defended it better if the whole community was focused,” he admitted.
Fostering Growth Through Investment and Collaboration
In response to these challenges, Yun has taken proactive steps to invigorate the TON ecosystem by launching TVM Ventures on February 3, 2024. This $100 million fund aims to promote decentralized applications geared toward financial services, encompassing decentralized finance (DeFi) and payment technologies. Over the next year, Yun plans to allocate approximately $25 million to developing scalable, decentralized products within the TON ecosystem. By fostering innovation and attracting developers, the initiative seeks to create a more robust and versatile network capable of meeting evolving demands.
Yun summarized his vision succinctly: “We should focus on how to build a scalable decentralized product by building on TVM. We should just have more and more products and services. With focus, vision comes back and the capital with it.” His words highlight the critical interplay between focus, innovation, and financial backing in driving TON’s evolution.
What’s next
As TON navigates an uncertain yet promising future, Telegram’s exclusive endorsement stands as both a challenge and an opportunity. By leveraging its strong integration with Telegram’s vast ecosystem and addressing concerns over decentralization and liquidity, TON has the potential to carve out a unique position in the competitive blockchain landscape. Yun’s confidence in TON’s scalability, paired with his strategic initiatives, reinforces the belief that the TON network is poised for sustained growth, even amidst market fluctuation. In the long run, this exclusivity may not be seen as a limitation but as the very foundation upon which TON builds a secure, scalable, and widely adoptable ecosystem.
