On Tuesday, the TON Foundation, which is developing the Telegram-initiated blockchain project known as the TON blockhain, announced that the last Toncoin had been mined by TON miners.
A significant turning point in the distribution of TON is the end of Toncoin mining, ushering in a new age as a blockchain that is solely PoS.
TON blockchain to run entirely on PoS
He highlighted that the last Toncoin was mined on June 28.
Toncoin #mining has ended
Today miners mined the last #Toncoin from the PoW Giver smart contracts, marking the end of the initial token distribution phase.
The $TON Foundation has published an article that describes the history of TON mining.
👉https://t.co/SYHelDyr3i pic.twitter.com/fiz709C99J
— TON (@ton_blockchain) June 28, 2022
According to the TON Foundation, new Toncoins will only enter circulation through PoS validation from now on. The reduction in token creation will result in, a 75% reduction of the total quantity of new Toncoins entering the network, as compared to current maximums of 200,000 tokens per day.
What is PoS?
Proof-of-stake, or PoS, is a consensus technique that is based on a validator’s stake in the network. The PoS differs from the traditional consensus mechanism used by leading cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), which relies on block validity verified via computational power supplied by miners.
The current TON network, according to Makosov, was launched on November 15, 2019, with coin issuance based on smart contracts that can be mined on July 7, 2020. The tokens were placed in “giver” smart contracts, which allowed anyone to engage in the mining.
The article goes on to say that after the Telegram team reached a settlement with the US Securities and Exchange Commission and was compelled to abandon its involvement in TON, mining on TON began “spontaneously and unpredictably.”
The news caused the TON price to surge by 34% in a single day. According to CoinGecko, the coin is currently valued at $1.41.