A breakdown of TONCOIN and Fantom
Dec 16, 2022
A breakdown of TONCOIN and Fantom
Dec 16, 2022
Telegram and TONCOIN
Telegram's TON (The Open Network) is a Layer 1 blockchain that has recently risen to become a top 20 blockchain by market capitalization. Telegram, which has over 750 million active users, developed TON as a scalable, shardable, and energy-efficient blockchain that is designed to enable quick and low-cost transaction settlement. TON has a complete ecosystem of products and services, including tokens, NFTs, staking, domain names, marketplaces, multifunctional wallets, DEXs, and other DeFi services.
TON is a proof-of-stake network and uses its native token, $TON, for validation and transaction fees, as well as for payment within dApps on the blockchain and for validator rewards. Nominators can earn rewards by lending their tokens to validators, who are managed using smart contracts. TON also has a number of other services and applications, including decentralized data storage, a VPN called TON Proxy, a domain name system called TON DNS, and NFT marketplaces.
Over the course of 2022, TON has seen significant growth in its network accounts, media subscribers, validators, and market capitalization. Its success is likely due in part to its large existing user base and the fact that it has been able to create a comprehensive ecosystem that caters to a wide range of needs. It will be interesting to see how TON continues to evolve and whether it will become a major player in the crypto industry.
Fantom
Fantom is a Layer 1 platform that supports decentralized applications (dApps). It was founded by Andre Cronje in 2018 and utilizes Directed Acyclic Graph (DAG) technology rather than Blockchain technology. Despite an unconventional genesis journey, Fantom has managed to build a thriving ecosystem of dApps and currently ranks No. 8 by TVL ($440m) among all Layer 1s and Layer 2s.
Some of the top dApps deployed on Fantom include SpookySwap, a decentralized exchange (DEX); GeistFinance, a lending market; beefyfinance, a yield aggregator; and CurveFinance, a stable swap.
Fantom faced challenges in its early days due to the 2018 crypto crash, which significantly reduced the value of its ETH holdings. In response, Fantom cut down its burn rate and only hired core developers, continuing to build through the bear market. In early 2020, Fantom began participating heavily in DeFi, yield farming on platforms like Compound and Synthetix and using farming rewards to buy back its native token, FTM.
Through careful treasury management, Fantom has accumulated a large war chest of FTM, stablecoins, and crypto assets, along with non-crypto assets. This has allowed the company to increase its burn rate and maintain a 30 year runway. Fantom is currently cash flow positive, earning around $10m per year with a burn rate of $7m per year.
Lessons that other projects can take from Fantom's success include prioritizing treasury management, creating a sustainable business model, and not relying on token sales as a primary source of income. It's worth noting that Fantom's approach may not be the right fit for every project, but it's clear that careful financial management can be key to long-term success in the crypto industry.
Sources:
https://andrecronje.medium.com/learn-from-my-mistakes-4cc8faf98468…
https://messari.io/asset/fantom/profile
https://cobie.substack.com/p/trading-the-metagame
Telegram and TONCOIN
Telegram's TON (The Open Network) is a Layer 1 blockchain that has recently risen to become a top 20 blockchain by market capitalization. Telegram, which has over 750 million active users, developed TON as a scalable, shardable, and energy-efficient blockchain that is designed to enable quick and low-cost transaction settlement. TON has a complete ecosystem of products and services, including tokens, NFTs, staking, domain names, marketplaces, multifunctional wallets, DEXs, and other DeFi services.
TON is a proof-of-stake network and uses its native token, $TON, for validation and transaction fees, as well as for payment within dApps on the blockchain and for validator rewards. Nominators can earn rewards by lending their tokens to validators, who are managed using smart contracts. TON also has a number of other services and applications, including decentralized data storage, a VPN called TON Proxy, a domain name system called TON DNS, and NFT marketplaces.
Over the course of 2022, TON has seen significant growth in its network accounts, media subscribers, validators, and market capitalization. Its success is likely due in part to its large existing user base and the fact that it has been able to create a comprehensive ecosystem that caters to a wide range of needs. It will be interesting to see how TON continues to evolve and whether it will become a major player in the crypto industry.
Fantom
Fantom is a Layer 1 platform that supports decentralized applications (dApps). It was founded by Andre Cronje in 2018 and utilizes Directed Acyclic Graph (DAG) technology rather than Blockchain technology. Despite an unconventional genesis journey, Fantom has managed to build a thriving ecosystem of dApps and currently ranks No. 8 by TVL ($440m) among all Layer 1s and Layer 2s.
Some of the top dApps deployed on Fantom include SpookySwap, a decentralized exchange (DEX); GeistFinance, a lending market; beefyfinance, a yield aggregator; and CurveFinance, a stable swap.
Fantom faced challenges in its early days due to the 2018 crypto crash, which significantly reduced the value of its ETH holdings. In response, Fantom cut down its burn rate and only hired core developers, continuing to build through the bear market. In early 2020, Fantom began participating heavily in DeFi, yield farming on platforms like Compound and Synthetix and using farming rewards to buy back its native token, FTM.
Through careful treasury management, Fantom has accumulated a large war chest of FTM, stablecoins, and crypto assets, along with non-crypto assets. This has allowed the company to increase its burn rate and maintain a 30 year runway. Fantom is currently cash flow positive, earning around $10m per year with a burn rate of $7m per year.
Lessons that other projects can take from Fantom's success include prioritizing treasury management, creating a sustainable business model, and not relying on token sales as a primary source of income. It's worth noting that Fantom's approach may not be the right fit for every project, but it's clear that careful financial management can be key to long-term success in the crypto industry.
Sources:
https://andrecronje.medium.com/learn-from-my-mistakes-4cc8faf98468…
https://messari.io/asset/fantom/profile
https://cobie.substack.com/p/trading-the-metagame
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