All 5B toncoins mined on PoS TON blockchain

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All 5B toncoins mined on PoS TON blockchain
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The TON Foundation, an organization developing the TON blockchain, a blockchain project initiated by Telegram, officially announced Tuesday that TON miners have mined the final toncoin.

In a statement to Cointelegraph, TON Foundation founding member and core developer Anatoly Makosov said: “Thousands of miners have mined the entire issuance of toncoins, approximately 5 billion tokens.” He noted that the last toncoins were mined on June 28.

The end of toncoin mining marks an important milestone in the issuance of TON, ushering in a new era for it as a fully PoS blockchain. The TON Foundation stated that from now on, new toncoins will only enter circulation through PoS verification. This will result in a roughly 75% reduction in the total amount of new toncoins flowing into the network, up to the existing limit of 200,000 coins per day.

The TON price immediately reacted to the news, surging 34% over the past 24 hours. The token is trading at $1.41, according to CoinGecko.

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TON 7-day price chart. Source: CoinGecko

By definition, Proof of Stake or PoS is a consensus algorithm whose operation depends on validators’ stake in the network. The PoS algorithm is the opposite of Proof of Work (PoW), the original consensus algorithm for major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), which is based on blocks verified by the computing power provided by miners.

According to TON’s white paper, its blockchain uses the PoS method to generate new blocks. However, its unique infrastructure somehow allows miners to generate toncoins using PoW consensus, Makosov said:

“The TON blockchain has always been proof-of-stake; the novelty is that even in a PoS blockchain, it is possible to write smart contracts that can mine according to PoW principles.”

“If you put the entire token issuance of the blockchain on a smart contract like this, you get a PoS blockchain but distribute the tokens in the form of mining. As far as we know, no one has done this before passed,” the developer added.

According to Makosov, the current TON network was launched on November 15, 2019, and the token issuance was placed on a smart contract that could be mined on July 7, 2020. Tokens are placed in special “gender” smart contracts that allow anyone to participate in mining. “Users mine around 200,000 TON per day,” reads an official post dedicated to the history of TON mining.

Related: New $250M TONcoin Fund Targets DEX and NFT Instruments on the TON Blockchain

“Mining on the proof-of-stake TON blockchain is a unique phenomenon to watch,” the post noted, adding that following the Telegram team’s settlement with the SEC, mining on TON was “spontaneous and random. “began and was forced to terminate participation in TON.

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