TON (blockchain)

TON, also known as The Open Network (previously Telegram Open Network), is a decentralized layer-1 blockchain. TON was originally developed by Nikolai Durov who is also known for his role in creating the messaging platform, Telegram.

The Open Network

Other names	TON; formerly: Telegram Open Network
Original author(s)	Nikolai Durov, Pavel Durov
Developer(s)	TON Core, previously Telegram Messenger Inc.
Stable release	v2025.03 / 11 March 2025; 49 days ago (2025-03-11)
Repository	github.com/ton-blockchain/ton
Written in	C++, FunC, Fift, Tact
Operating system	Linux, macOS, Windows
Platform	Blockchain, Distributed computing
Type	Blockchain, Cryptocurrency
License	LGPL v2.1
Website	ton.org

Telegram had planned to use TON to launch its own cryptocurrency (Gram), but was forced to abandon the project in 2020 following an injunction by US regulators.^[1] The network was then renamed and independent developers have created their own cryptocurrencies and decentralized applications (dApps) using TON. Toncoin, the principal token of The Open Network is deeply integrated into the Telegram messaging app, used for paying rewards to creators and developers,^[2] buying Telegram ads,^[3] hosting giveaways^[4] or purchasing services such as Telegram Premium.

History

The Open Network (TON) traces its origins to a blockchain project initiated by Telegram Messenger in 2018. Known at the time as the "Telegram Open Network," the project was designed to offer a high-throughput, scalable blockchain infrastructure capable of supporting decentralized applications and potentially integrating with Telegram’s global user base. To fund its development, Telegram conducted one of the largest private token sales in history, raising approximately US$1.7 billion through the planned issuance of a native token called "Gram." ^[5]

However, in October 2019, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Telegram, alleging that the Gram token constituted an unregistered security under U.S. law. In response to the litigation, Telegram agreed in June 2020 to a settlement that included returning US$1.2 billion to investors and paying an US$18.5 million civil penalty. As part of the settlement, Telegram ceased active development of the TON project and abandoned plans to launch the Gram token.^[6]

Following Telegram’s exit, the open-source codebase of the original TON project was adopted by an independent group of developers and community members, who launched a community-driven fork called "Free TON" in May 2020. This initiative sought to continue the technical development of the network while emphasizing decentralized governance and contributor-led decision-making. In late 2021, Free TON rebranded as "Everscale," reflecting its architectural upgrades and strategic divergence from the original Telegram vision.^[7]

Separately, in 2021, a different group of developers revived the original TON blockchain under the name "The Open Network" (TON), reintroducing a native cryptocurrency called Toncoin. This revival—sometimes referred to as "NewTON"—gained momentum following public endorsement from Telegram CEO Pavel Durov, who expressed support for the initiative. Unlike Everscale, this implementation aimed to maintain closer alignment with Telegram’s original plans and branding.^[8]

Telegram subsequently integrated Toncoin functionality into the messaging app via the @wallet bot, enabling users to send and receive cryptocurrency directly within Telegram chats. Since 2023, The Open Network has experienced rapid ecosystem growth, marked by the launch of liquid staking protocols, native non-fungible token (NFT) marketplaces, TON DNS, TON Storage, and integration with Telegram’s Mini App framework. These developments have positioned TON as a high-performance layer-1 blockchain closely integrated with the Telegram platform.^[9]

Architecture

Overview

The Open Network (TON) is a layer-1 blockchain designed to support a wide range of applications, including digital payments, smart contracts, and on-chain governance. It emphasizes scalability, parallelism, and efficiency, enabling millions of smart contracts to operate concurrently across a dynamically sharded, multichain network. TON's architecture is optimized for high transaction throughput and low latency, making it suitable for global-scale decentralized systems.

Network Architecture

TON’s architecture is built around a hierarchical multi-blockchain model, consisting of a single masterchain, up to ${\displaystyle 2^{32}}$ workchains, and each workchain dynamically splitting into up to ${\displaystyle 2^{60}}$ shardchains based on load. This dynamic sharding mechanism ensures horizontal scalability, allowing the network to process thousands of transactions per second without congestion.^[10]

Inter-chain communication is enabled by a hypercube routing protocol, which supports low-latency message transfers between chains in logarithmic time. This design ensures efficient cross-chain contract execution and data synchronization as the network scales globally.

The masterchain maintains critical network-wide metadata, including validator sets, configuration parameters, and references to all workchain blocks. Each workchain can define its own virtual machine and governance rules, enabling a wide range of specialized applications.

Consensus and Governance

TON employs a modified proof-of-stake (PoS) consensus with Byzantine fault tolerance (BFT). Validators are selected based on the amount of Toncoin staked and participate in block production and validation. Protocol upgrades and parameter changes are implemented via on-chain validator voting, with governance decisions automatically enforced by the consensus engine.^[11]

Although the TON Foundation coordinates ecosystem growth and funds development initiatives, it does not hold unilateral control over protocol-level changes. The governance process is decentralized and driven by validator consensus.^[12]

TON Virtual Machine and Smart Contracts

The TON Virtual Machine (TVM) is a high-performance, stack-based execution environment built for the TON blockchain, optimized for resource efficiency, asynchronous processing, and formal verification. It runs smart contracts in TVM-compatible bytecode, compiled from:

• Fift: A low-level language for stack manipulation and system-level contract development.^[13]
• Func: A high-level, statically-typed language for secure and simplified contract creation.^[14]
• Tact: A concise, modern language for safe and expressive smart contracts.^[15]
• Tolk: A readability-focused language for simplifying complex contract logic.^[16]

TVM smart contracts operate on a message-driven model, where inbound messages trigger execution, and outbound messages enable scalable, parallel interactions across shards. Gas fees are computed based on computation, memory, and storage usage.^[17]

The TVM toolchain includes static analysis, formal verification, and debugging tools, ensuring contract security, reliability, and performance before deployment.^[18]

Security and Auditing

The Open Network (TON) implements a multi-layered security framework that integrates economic deterrents, formal verification methodologies, and independent audits. Validator misbehavior, such as double signing or downtime, may result in stake slashing, thus incentivizing honest participation in the consensus process. Additionally, smart contracts on TON are built to support transparency and formal verifiability prior to deployment.

To enhance the reliability and integrity of the ecosystem, TON collaborates with a group of certified Security Assurance Providers (SAPs). These third-party firms specialize in code auditing, vulnerability assessments, and protocol-level reviews. As of 2024, notable SAPs working with TON include CertiK, Quantstamp, SlowMist, Hexens, Vidma, Scalebit, and SoftStack. Their evaluations contribute to the proactive mitigation of security risks across smart contracts and infrastructure layers.^[19]

The network also promotes formal verification of smart contracts through its native toolchain, enabling developers to mathematically prove correctness and prevent critical vulnerabilities before deployment.^[20]

TON-based Services

The TON ecosystem encompasses a variety of decentralized services and infrastructure protocols aimed at providing scalable and censorship-resistant solutions. These services are natively integrated into the TON blockchain and are facilitated by Toncoin, the network's utility token, which supports transactions, staking, and governance.

Toncoin

Toncoin is the native utility token of the TON blockchain, used for paying transaction fees, staking to secure the network, executing smart contracts, and participating in protocol governance. It serves as the primary medium of exchange within the TON ecosystem, enabling services such as decentralized file storage (TON Storage), anonymous routing (TON Proxy), and domain registration (TON DNS). Toncoin also incentivizes validators and infrastructure operators through the network's proof-of-stake consensus mechanism. For instance, storage providers in TON Storage and proxy operators in TON Proxy are compensated in Toncoin for their services.

TON DNS

TON DNS is a decentralized domain name system that allows users to register human-readable .ton domains. These domains can be linked to wallet addresses, smart contracts, or decentralized services, simplifying interactions with blockchain-based resources. Unlike traditional DNS systems, which rely on centralized authorities, TON DNS is fully decentralized and resistant to censorship. Domain ownership is managed through on-chain smart contracts, with domains acquired via auction or direct registration, similar to other blockchain-based domain systems like the Ethereum Name Service.^[21]

TON Sites and TON Proxy

TON Sites enables decentralized web hosting on the TON blockchain using .ton domains registered through TON DNS. Content for these sites can be stored directly on the blockchain for small files or via TON Storage for larger content, ensuring decentralized access without reliance on centralized hosting providers. TON Sites are accessible through compatible browsers and TON-enabled wallets, providing a seamless user experience for decentralized web applications.

TON Proxy is a decentralized anonymity protocol that allows users and nodes to obfuscate their identities and traffic. Inspired by networks like Tor and I2P, TON Proxy supports the creation of privacy-preserving services such as decentralized VPNs and censorship-resistant applications. It offers advantages over traditional anonymity networks through its integration with the TON ecosystem, including Toncoin-based incentives for proxy operators and enhanced performance for TON-based services. TON Proxy also supports standard HTTP Proxy features for broader compatibility.

TON Storage

TON Storage is a distributed file storage system integrated with the TON blockchain. It enables users to upload large files, which are fragmented into smaller pieces and stored across peer-to-peer nodes for redundancy and fault tolerance. Storage providers are compensated through smart contracts tied to service commitments, with payments made in Toncoin. This system supports various applications, including decentralized website hosting, smart contract metadata storage, and large media content delivery. TON Storage shares similarities with other decentralized storage solutions like IPFS and Filecoin, but is specifically tailored for the TON ecosystem.^[22]

TON Payments

TON Payments is an off-chain payment system designed for micropayments and high-frequency transactions. It utilizes payment channels to enable secure value transfers between users and services without immediately settling each transaction on-chain. This mechanism reduces latency and transaction fees by allowing multiple payments to be aggregated and settled only when the channel is closed—similar to writing multiple checks that are cashed at once. TON Payments incorporates cryptographic proofs to ensure the integrity and security of payment channels, preventing fraud and double-spending. This system is particularly useful for compensating operators in services like TON Proxy and TON Storage, where frequent, small payments are required.^[23]

Decentralized Finance (DeFi) on TON

The TON blockchain supports a growing decentralized finance (DeFi) ecosystem, offering high-throughput, low-fee infrastructure suitable for decentralized applications. With native support in the Telegram platform, TON DeFi products aim to improve accessibility and integrate blockchain-based financial services into mainstream user experiences.

KTON

KTON is a LST V2 built on TON.

KTON is a liquid staking protocol deployed on the TON blockchain. It is built using the TON Core Team’s Liquid Staking Contract V2 framework,^[24] enabling users to stake Toncoin and receive liquid staking tokens (LSTs) in return. These tokens represent staked positions and can be freely transferred or used in other DeFi applications.

KTON’s architecture emphasizes instant liquidity, non-custodial staking, and future compatibility with on-chain governance. The project has undergone security audits and is positioned as a next-generation staking solution for both institutional and retail users on TON.^[25]

STON.fi

STON.fi is a decentralized exchange (DEX) operating on the TON blockchain. It utilizes an automated market maker (AMM) model to allow users to swap TON-based assets without intermediaries. STON.fi supports the Jetton token standard and enables liquidity provision, yield farming, and permissionless trading.

Launched in 2022, STON.fi has grown to become one of the primary liquidity hubs in the TON ecosystem. It integrates with TON-native wallets such as Tonkeeper and Wallet (Telegram-integrated), and supports seamless interaction for on-chain users.^[26][27]

Tonkeeper

Tonkeeper is a non-custodial wallet application for the TON blockchain. It allows users to manage Toncoin and Jetton-standard tokens, access DeFi protocols such as STON.fi, and interact with TON smart contracts. Tonkeeper is available on mobile and browser extensions and has become one of the most widely used wallets in the ecosystem.

Telegram Wallet and TON Space

Telegram has integrated native TON functionality into its messaging app through two products:

• Wallet: a custodial solution developed in partnership with the TON ecosystem, enabling in-chat transfers and payments.
• TON Space: a self-custodial browser-based wallet embedded in Telegram, giving users full control over their private keys and access to DeFi services directly within the platform.^[28]

Telegram’s native support has played a significant role in driving user onboarding to TON-based DeFi products, especially among non-crypto-native audiences.

Forks and related projects

Following Telegram's withdrawal from the development of the TON blockchain in May 2020 due to legal pressure from the U.S. Securities and Exchange Commission (SEC), several independent groups began building on the publicly available TON codebase. One of the earliest and most prominent forks was Free TON, which later rebranded to Everscale.

Everscale (formerly Free TON)

Launched on May 7, 2020, Free TON was initiated by a decentralized community of developers and validators using the open-source TON code released under the GNU General Public License. The project aimed to continue TON’s technological vision independently from Telegram. In November 2021, it was rebranded as Everscale to reflect the project's evolution and commitment to scalability. The rebranding included changing the network's native token name from TON Crystal to EVER.

Everscale introduced several protocol-level innovations, including dynamic sharding, a transition from C++ to Rust-based nodes, and a new governance structure via the EVER DAO. Its native token, EVER, was distributed through community-based contests and validation rewards, emphasizing a meritocratic distribution model. Unlike Toncoin, which is closely integrated into Telegram’s Web3 strategy, Everscale developed as a parallel ecosystem with its own development roadmap and tools.^[29][30]