In this article:
- About Toncoin (TON)
- History of Toncoin (TON) and the Ton Network
- How to stake Toncoin (TON)?
- Profitability Toncoin (TON) staking
About Toncoin (TON)
Any transactions in TON blockchain must be confirmed by validators. They provide a server and freeze a certain amount of coins, receiving a reward for this. Staking pools collect users’ deposits and use them for validation, distributing the reward between stakers.
As a fully decentralized layer-1 blockchain, TON utilizes Toncoin for transaction fees, staking, and network governance. Staking TON not only strengthens the network but also rewards you with more TON tokens, effectively growing your digital assets.
The Open Network (TON) is a revolutionary technology to unite all blockchains and Web2 internet into one open network. It was born to empower billions of Telegram users with genuine Web3. Originally introduced by the Telegram team inheriting its freedom and openness ethos, it has been run as an open-source community project since 2020. Users can now buy and sell Telegram usernames and anonymous numbers with Toncoin.
History of Toncoin (TON) and the Ton Network
In 2018, there was news that Telegram aimed to create its own blockchain, dubbed the Telegram Open Network.
Pavel Durov and Nikolai Durov were the original founders of Telegram and, as such, of the Toncoin (TON) cryptocurrency.
Telegram’s original scheme was banned by the US Securities and Exchange Commission (SEC) in March 2020 due to the fact that the SEC claimed the sales of the digital coin would essentially constitute securities offerings without any registration exemption available.
Telegram gave up on the project. However, two developers pushed it forward. Anatoliy Makosov and Kirill Emelyanenko would take over the development of TON through an open-source community known as Newton.
The community would vote to fully launch and rename the Newton community as The Open Network (TON) Foundation.
How to stake Toncoin (TON)?
If you decide to become a nominator (staker), you need to get a wallet.
You can familiarize yourself with the available applications on the page https://ton.org/wallets. We recommend using the Tonkeeper wallet.
Once you have created a wallet and funded it with an amount of TON Coin, you need to select a pool and send funds.
Pools of validators contain assets in smart contracts, which guarantees the use of attracted funds for their intended purpose and timely payment of interest.
The minimum investment amount of nominator funds depends on the selected pool.
So, you have created and funded your wallet, you need to activate TON Coin staking.
- Follow the link https://xbanking.org using the built-in wallet browser. You will get into the first open-source decentralized TON staking pool. The smart contract service guarantees that your coins will only be used for verification. Profits from verification will be shared between the participants (nominator and validator).
- Click on the “Launch app” link.
- Find the TON token staking pool.
- Connect your wallet, specify the amount of TON tokens you want to place in the staking pool, select the placement period. The longer the staking period, the higher your reward will be (up to 12% APR).
- Click “Confirm staking” and send TON tokens to staking.
Profitability Toncoin (TON) staking
Make staking TON Coin profit calculation can be done independently, using the APY (APR) of a particular pool.
In the wallet, the amount of income from staking TON is calculated when sending money to the pool. On average, the nominator receives from 7 to 12% per annum.
On top of all that, if you don’t withdraw profits as they accrue, your income will go into the deposit, creating compound interest.
Compound Interest (Rentier) is an investment process where profits are not withdrawn but re-invested. Thus, each time increasing the deposit and in the same place the next profit.
We wish you a good staking! ❤️