In our recent introduction to the TON Ecosystem, we highlighted several use cases for Toncoin, which included staking as a key feature. Currently, the ecosystem holds 424,382,249 staked Toncoin as of March 6, 2024, valued at over US$1 billion. This article aims to inform TON owners about the staking process within the ecosystem, highlighting how it contributes to network security and provides liquidity.

Our ecosystem projects across Web3 sectors—DeFi, SocialFi, and GameFi—are poised for success on TON Blockchain. Unlike competitors, TON provides direct access to Telegram’s vast user base of approximately 800 million monthly active users, along with unmatched scalability and shardability. These features make any TON-based project a leader in its field.

One of the early promises of crypto was to replace the traditional centralized banking industry. Among the cornerstone services of TradFi is the ability to securely and conveniently store assets without them being inert and unused—a feature now reimagined for Web3 through TON staking.

What is staking on TON?

TON Blockchain uses a Proof-of-Stake (PoS) model to achieve network consensus and security. This system is more energy-efficient than the method used by Bitcoin and other blockchains, known as Proof-of-Work (PoW). Unlike PoW, which requires miners to use computing power to solve complex mathematical puzzles, PoS selects validators—those who verify and add new transactions to the blockchain—based on the amount of cryptocurrency they commit as a security deposit.

The idea is simple: the more cryptocurrency you’re willing to lock up as collateral, the more likely you are to be selected to validate transactions. This system hinges on validators’ investment in the network’s success, as their stake incentivizes them to maintain its integrity. You can read the full documentation here.

For a transaction to be added to TON Blockchain, it must receive unanimous approval from all validators. Users pay a small fee as part of any transaction, which serves as compensation to the validators for their role in securing consensus. This fee, along with any new coins minted during the validation process, is distributed among the validators according to the size of their stake and their specific contributions.

Anyone interested in supporting the network’s security can become a validator. However, there’s an important requirement: typically, you need to stake a minimum of 600,000 TON to qualify. TON’s staking services aim to make participation more accessible, allowing average TON holders to join forces and earn participation rewards by pooling their resources together. Everyone on TON can now participate in network security.

Typically, this pooling process is supported by independent smart contracts and a DAO, which collectively manage user deposits for validation purposes and subsequently distribute rewards among those who contributed. Within the TON Ecosystem, there are several reputable projects offering these services, providing a secure and efficient way for users to stake.

Ton Whales

Ton Whales was the first service to offer open-source decentralized staking on TON Blockchain, attracting over 9,000 users who have collectively staked more than approximately US$62 million. They have reportedly distributed approximately 1,132,103 TON in rewards to their users. Ton Whales sets a high standard for transparency and fairness by making their smart contract and DAO fully open-source. This allows users to verify the integrity of the operations themselves. Additionally, the team ensures the system runs smoothly by providing round-the-clock monitoring services.

To cater to different user needs, Ton Whales offers a variety of staking pools, each with its own set of requirements and conditions, and they claim to offer annual percentage yields (APY) ranging from approximately 4.05% to 5.85%. For added convenience, Ton Whales has integrated its staking services directly within several TON wallets, including Tonkeeper. This integration means users can easily stake their Toncoin directly from their wallets.

Tonstakers

Tonstakers introduces a liquid staking protocol, offering the benefits of staking while allowing your coins to be used for other purposes within the TON Ecosystem. By staking with Tonstakers, you deposit your TON and receive tsTON tokens in return. These tokens represent your share in the staking pool and can be freely used across the TON DeFi ecosystem. You can exchange your tsTON tokens back for Toncoin, along with any accumulated yield, whenever you choose.

As of March 6, 2024, Tonstakers has over 23,000 participants, with a total of $69.7 million staked, reportedly offering an APY of approximately up to 5% for the year ended 31 December 2023. The platform was developed in collaboration with TON core developers, features open-source contracts, and has undergone an audit by Certik, ensuring its reliability and security. Importantly, Tonstakers operates on a non-custodial basis, meaning users retain control over their assets at all times. Tonstakers also provides their services in a Telegram Mini App as well as natively within TON wallets like Tonkeeper.

bemo

bemo is another liquid staking service that features a Telegram Mini App. With bemo, you can stake your TON tokens and receive stTON tokens in return, allowing you to continue earning staking rewards while participating in DeFi activities.

Staking TON via bemo lets you earn stXP (Staking Experience Points), which will convert to $BMO tokens in Q4 2024. Up to 20% of $BMO tokens will be distributed to stXP holders, rewarding higher stXP balances with more $BMO tokens.

With bemo, you can hold stTON and earn stXP, pool on a DEX for more stXP, or swap stTON to earn stXP based on trading volume. Delegate your tokens to validators while retaining ownership, receive staking rewards, and manage stakes through the Telegram Mini App, ensuring you can track your staking anytime, anywhere.

bemo has been audited by Certik and TonTech, ensuring security and a 4.02% APY reported for 2023.

Hipo

Hipo, according to their claims, provides a decentralized liquid staking solution on TON Blockchain, enabling users to earn daily rewards as soon as they start staking. By participating, users receive hTON tokens, which represent their staked TON and can be utilized across the DeFi ecosystem, similar to other staking options.

Hipo is committed to deploying staked TON in the most efficient manner to maximize rewards and offers an easy unstaking process for added convenience. Hipo currently has nearly 1 million Toncoin staked. The platform has undergone two audits, one by TonTech and another by Daniil Sedov.

Experience a new kind of finance with TON staking

Staking on TON Blockchain is a new and exciting entry point for users to step into the decentralized digital economy. With a variety of staking options–both traditional and liquid–TON allows everyone to earn cryptocurrency passively, with flexibility and security. By leveraging advanced smart contracts and DAOs, TON is promoting a more inclusive and efficient financial system, showcasing how blockchain can democratize access to financial investments and rewards.

Disclaimer: Mentions of products or services on this blog do not imply endorsement or inducement. The cryptocurrency market is volatile, and usage of staking protocols could lead to getting less return on your cryptocurrency tokens than expected. We urge readers to conduct their own research and seek professional advice. We are not responsible for your financial decisions and any losses that might be resulted.