TON validators set to vote on suspending $2.5 billion in toncoin

Validators for The Open Network (TON) are considering the suspension of 195 inactive addresses on the proof-of-stake blockchain, with a vote scheduled to begin on Feb. 21. In total, these addresses currently hold just over 1 billion toncoin or 21.3% of the total supply, worth around $2.5 billion at today’s valuation. 

At least 75% of validators must participate in several voting rounds for the vote to pass. If approved, the proposed suspension will last for four years, with the affected addresses not able to make any transactions for the duration of the freeze period. The “suspended list” would be visible on the public blockchain.

Wallet addresses are considered inactive if they took part in the token’s initial distribution phase between July 2020 and June 2022 but have never made an outgoing transaction. In December, the TON Foundation, a non-commercial group of supporters and contributors behind the blockchain, asked the affected wallet owners to demonstrate their continued activity by making a transaction on TON. The remaining inactive wallets can avoid the potential suspension by making a transaction at any time before voting ends. It’s important to note that addresses not part of the initial distribution will not be affected.

The distribution of toncoin made 98.55% of its total supply available for an “initial proof-of-work” mechanism. In contrast to centralized distribution strategies often decided upon by crypto project development teams, TON’s mining strategy was designed to decentralize the distribution process while remaining a proof-of-stake blockchain.

The move was a “testament to the importance of transparency to the TON community,” the TON Foundation said in a statement. “Through the potential suspension of these wallets, there is a hope that clarity about the volume of toncoin currently circulating will be provided and that the active community participating in the open-source project will continue to grow and thrive,” it added.

The Open Network was originally designed in 2018 by the founders of Telegram Messenger and later handed over to the TON community to continue its development.

Earlier this month, TON launched a decentralized file-sharing and data storage solution called TON Storage, taking on similar projects like Filecoin and Storj.

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