As a seasoned analyst with years of experience in the blockchain and decentralized finance (DeFi) space, I find the recent developments at The Open Network (TON) particularly intriguing. The introduction of Society DAO by the TON Foundation marks a significant step towards true decentralization, addressing long-standing concerns about fair access to capital and centralization risks.
The decentralized blockchain platform linked to Telegram, known as The Open Network (TON), is undergoing a change as it progresses towards full decentralization. The TON Foundation has formally unveiled a fresh governance model named Society DAO.
On November 1, the TON Foundation unveiled their new system for decision-making, known as the governance structure, along with a Decentralized Autonomous Organization (DAO) called Society DAO.
The Society DAO has four initial contributors: TON Core, TON Society, a wallet on Telegram, and the recently established development group, TON Studio.
According to the leaders of the Society Decentralized Autonomous Organization (DAO), namely Steve Yun, its president, and Jack Booth, one of the TON Society founders, the main goal of this organization is to tackle a variety of concerns regarding decentralization and equitable access to financial resources. They also strive to boost transparency, stimulate competition, promote autonomy, and encourage active participation.
The TON Foundation cautions against centralization risks
Yun and Booth highlighted certain centralization risks in the TON ecosystem in the announcement.
Over the last twelve months, numerous entrepreneurs have greatly depended on this organization for their ventures’ prosperity, as it frequently functions as a primary source of funding. The heavy dependence on this entity, however, creates a potential risk of centralization which might result in a catastrophic single point of breakdown.
To address these concerns, the TON Foundation and TON Society are taking steps such as providing open-source funding opportunities, maintaining clear resource ledgers, and offering incentives tied to specific performance targets. One method they’re using is the Community Model, which returns decision-making power for resource distribution back to the community. The statement revealed:
“Under this approach, respected and proven community members are empowered to coordinate vision, goals, and strategies, collectively determining resource allocation in alignment with TON’s overall growth.”
As I embark on the creation of the TON Society to foster a more decentralized environment, it’s important to clarify that the TON Foundation will continue to play a significant role within our ecosystem. In fact, they plan to grant and fund SocietyDAO, acting as a vital cog in our collective growth. This information was shared by a representative of the foundation with CryptoMoon.
Wallet in Telegram advances self-custody capabilities
Beyond unveiling a fresh governance structure, Wallet within Telegram’s ranks – a key member of Society DAO – also disclosed a substantial upgrade merging their custodial and individual custody wallets as part of the development process.
Earlier, the Wallet on Telegram was set up for custodial use as standard. However, now it’s planned to connect this default custodial wallet setup with TON Space, which is an independent self-custody solution that has been under beta testing.
From its debut in September 2023, TON Space has been accessible as a beta feature, offering an extra choice for storing cryptocurrency independently, amassing over 100 million users.
Due to the imminent update, TON Space will transition into a full-fledged alternative to the traditional wallet’s custodial service, moving beyond its beta phase. As announced by the Open Platform’s CEO, Andrew Rogozov, this change is forthcoming.
“We want TON Space to become a gateway for the entire TON ecosystem, empowering Telegram’s 950 million users to seamlessly access decentralized applications built on TON. Improving the accessibility of blockchain solutions is the first step toward achieving mass adoption.”
Through dual access options, Telegram users gain the advantage of functioning as their own financial institution while maintaining control over their private keys (self-custody). They can also opt for traditional custody where a trusted third party manages their assets on their behalf.
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2024-11-01 15:22