TON Verifiers Propose Token Supply Reduction to Boost Decentralization

02/21/2023 07:05 • Blockchain Buzz • 133 views

It is reported that TON verifiers are preparing to vote on a proposal to change the economics and supply of tokens for the project. If the vote is passed, the supply of Toncin will be reduced by about 20% by “freezing for 48 months and then unfreezing”. These frozen Toncin will be about 1 billion, from the accounts of inactive Ton miners. The TON team said that the proposal might affect the market value of Toncoin, aiming to increase the decentralization of the network by reducing the control of whale wallets.

TON verifiers will vote to “freeze 1 billion Toncoin of inactive miners” to achieve decentralization

Interpret the above information:

TON verifiers are gearing up for a crucial vote that could change the economics and supply of tokens for the ambitious blockchain project. The proposal they are considering mandates a reduction in the supply of Toncin by roughly 20% through a process of “freezing for 48 months and then unfreezing.” This plan would impact almost 1 billion Toncin, which currently sits in the accounts of inactive miners. The main goal of the proposal is to increase the decentralization of the network by reducing the control that whale wallets have over it.

This represents a significant step for the TON project, which has struggled to gain traction in the cryptocurrency market over the last year. Despite a massive $1.7 billion ICO in 2018, TON has found it difficult to compete with established blockchains like Ethereum and Bitcoin. Some experts believe that the lack of decentralization has been a key factor in TON’s poor performance to date.

The proposed token supply reduction seeks to address this issue by limiting the influence of large investors and incentivizing ordinary users to get involved in the network. By reducing the supply of Toncin and rewarding active miners, TON hopes to promote more widespread participation in the project. This, in turn, should make the network more secure and improve user privacy.

However, it’s worth noting that the proposal could also have negative implications for the market value of Toncoin. Reducing the token supply might create artificial scarcity, which could drive up prices in the short term. However, if TON fails to attract enough new users to offset the reduced supply, the value of Toncoin could plummet.

All in all, the proposed token supply reduction by the TON verifiers is an intriguing development for the project. By focusing on decentralization and incentivizing active participation, TON is hoping to kickstart its market performance and establish a stronger presence in the blockchain world.

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