How does Toncoin enter circulation? Today’s post will go ov | TON Community
How does Toncoin enter circulation?
Today’s post will go over the TON mining structure.
The current iteration of The Open Network blockchain is the testnet2 that was launched by Telegram in 2019. Once the testnet was launched, 5 billion coins were released, which were later renamed Toncoin.
In 2020, Telegram separated itself from the project, and all coins were transferred to special “Giver” proof-of-work smart contracts.
Why was it structured this way?
Givers can be considered as a safe that releases coins to those who correctly solve the safe’s code.
In other words, Toncoin is not publicly available and is not immediately released for sale. The only way Toncoin can enter circulation before being bought on an exchange is by mining it first.
This way, the network remains decentralized.
Telegram could have burned all of its coins, but that would have spelled the end of testnet2. At that time, however, a group of dedicated developers had come together and wanted to continue working on the network.
As a result, Telegram provided network participants the opportunity to mine Toncoin via transparent proof-of-work mining.
Who solves this “code” and how?
Miners are the ones who solve these “codes.” The process goes like this: A user installs special software on their computer, and in the background, it attempts to solve mathematical problems broadcast by Givers.
The miner who solves the problem first receives 100 Toncoin, after which the Giver broadcasts a new mathematical problem, and the process starts anew.
You can read more on this process here.
Do Givers do anything else?
Givers are solely tasked with overseeing mining on the network, ensuring that it’s decentralized and available to all users.
How can I become a miner?
Follow the links for in-depth instructions on how to become a miner:
— GPU mining. How to mine with graphics cards?
— How to mine on Windows?
Mining Toncoin can even be done on regular personal computers.
