TON (The Open Network) has emerged as one of the most resilient cryptocurrencies in 2024, skyrocketing from $2 to $8 while deeply integrating with Telegram's ecosystem. But what's behind its price stability? A 2023 investigative report reveals that 85% of TON's total supply was mined by interconnected groups tied to the TON Foundation.
Key Findings from the Whiterabbit Report
- Concentrated Mining Power: Between July-August 2020, 96% of TON's initial supply was distributed through mining contracts, with 85.8% controlled by foundation-affiliated groups.
- Validator Influence: Funds from these mining groups now support validators controlling 2/3 of TON's PoS consensus.
- Frozen Assets: A 2023 governance vote froze 20% of supply (inactive addresses) for 4 years, further reducing market liquidity.
Structural Breakdown of Mining Groups
| Group | Timeline | TON Mined (Billions) | % of Total Supply |
|---|---|---|---|
| Group 1 (36 addresses) | July 6-30, 2020 | 1.1 | 22% |
| Group 2 (26 addresses) | July 30-Aug 24, 2020 | 1.0 | 20% |
| Group 3 (14 addresses) | July 6-Aug 24, 2020 | 0.94 | 18.8% |
| Group 4 (17 addresses) | July 19-Aug 24, 2020 | 0.86 | 17.2% |
| August Miner Groups | Aug 1-26, 2020 | 0.38 | 7.8% |
👉 How mining concentration impacts TON's price stability
The Foundation's Growing Role
The TON Foundation has received:
- 570M TON from mining groups
- Control over key validator nodes
- Responsibility for exchange listings (OKX, FTX integrations)
Recent moves suggest efforts toward decentralization:
- Gradual token releases to limit supply shock
- Proposed ecosystem development funds
- Increased validator participation requirements
FAQ: Understanding TON's Supply Dynamics
Q: Is TON a VC coin despite its mining distribution?
A: While initially mined, the concentration among foundation-linked groups creates VC-like control over supply circulation.
Q: Why hasn't this caused significant price drops?
A: Controlled release schedules and frozen addresses (20% supply) artificially limit sell pressure. Current CEX liquidity remains shallow at $200K-$400K per 2% depth.
Q: What's next for TON's decentralization?
A: The foundation has signaled plans to distribute more tokens to ecosystem projects, though concrete mechanisms remain unclear.
👉 TON's roadmap for reducing supply concentration
Critical Implications
- Market Manipulation Risks: With few large holders controlling liquid supply, coordinated actions could dramatically impact prices.
- Adoption Challenges: Limited utility beyond Telegram integration raises questions about organic demand drivers.
- Regulatory Scrutiny: The SEC's previous action against Telegram's initial token sale may resurface given current supply control.
Risk Disclosure: Cryptocurrency investments carry substantial risk—volatility may lead to total capital loss. Conduct thorough research before participating.
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