According to the TON Foundation, the TON blockchain has always been proof-of-stake, and toncoin mining began “spontaneously and randomly” in 2020.

The TON Foundation, which is building the Telegram-initiated blockchain project, the TON blockchain, revealed on Tuesday that TON miners had mined the final toncoin.

“Tens of thousands of miners mined the full supply of toncoins, which was about 5 billion tokens,” TON Foundation founding member and core developer Anatoly Makosov, He highlighted that the last toncoin was mined on June 28.

The cessation of toncoin mining represents a significant turning point in TON’s distribution, ushering in a new era as an exclusively PoS network. According to the TON Foundation, new toncoins will only enter circulation through PoS validation from now on. This will result in a 75 percent reduction in the total influx of new toncoins into the network, compared to the current cap of 200,000 tokens each day.

The TON price rapidly reacted to the news, rising 34% in the last 24 hours. According to CoinGecko data, the token is currently trading at $1.41.

Source: CoinGeckoProof-of-stake, or PoS, is a consensus technique that is based on a validator’s stake in the network. The PoS method is in contrast to the original consensus process of major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), which is based on blocks validated through computing power given by miners.The TON blockchain generates new blocks using a PoS technique, according to the whitepaper. However, its unique architecture enabled miners to generate toncoins utilizing the PoW consensus as well, according to Makosov:

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

“If you base the network’s whole currency issuance on such a smart contract, you get a PoS blockchain, but with coin distribution in the form of mining.” No one has done this before, as far as we know,” the developer stated.

The current TON network, according to Makosov, was released 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. “Users mined around 200,000 TON daily,” according to an official site devoted to TON’s mining history.

“Mining on the proof-of-stake TON blockchain was a remarkable phenomenon to see,” the post says, adding that mining on TON began “spontaneously and randomly” after the Telegram team reached an agreement with the US Securities and Exchange Commission and was obliged to end its engagement with TON.

Source: Cointelegraph