The Telegram founder has revealed that the Toncoin network is set to see its transaction fees drop by sixfold in one week’s time.
Toncoin To Drop Transfer Fees As Part Of MTONGA
In a new post on X, Telegram founder and CEO Pavel Durov has shared that the Toncoin network will undergo a change related to transaction fees in one week. Previously, the blockchain already offered a relatively cheap transfer rate when compared to popular networks like Bitcoin and Ethereum, but the new update will further slash the fee on TON, bringing it down to just 0.00039 TON (worth about $0.0005).
The sixfold reduction in the transaction fees will hold regardless of network congestion. This is unlike many other networks, where the value of the transfer fees is dependent on blockchain conditions. Typically, a high amount of traffic tends to increase network fees, while low activity decreases the metric. On TON, however, the fees will remain fixed at its low value.
The initiative is part of Toncoin’s “Make TON Great Again” (MTONGA) roadmap, which is planned to involve a total of seven steps. Earlier in the month, the first step of the roadmap went into action as the TON blockchain underwent an upgrade. Durov talked about the update in an X post, noting that it made the network 10x faster and increased block rate by 6x. The upgrade also made transactions on the network practically instant.
In the same post, the Telegram founder had teased the next step of the roadmap, which is now finally getting implemented with the transaction fee reduction in one week.
In its early years, TON was developed by the Telegram team, and its full form stood for the Telegram Open Network. After a court order from the US Securities and Exchange Commission (SEC), however, the company was forced to pull its involvement from the network. TON rebranded to The Open Network and has since been supported by independent contributors, including the TON Foundation.
Despite the end of Telegram’s formal involvement, Durov has continued to be a vocal supporter of the blockchain, with the MTONGA roadmap being an example of his continued backing.
In the new X post related to the second step of MTONGA, the Telegram CEO also hinted at what’s coming up for the network once the upgrade is done. “Soon after most transactions go fully feeless,” noted Durov. “Zero commission. MTONGA!”
As mentioned earlier, Toncoin already offers cheaper transactions than other popular blockchains. Below is a chart from BitInfoCharts that puts into perspective the difference by showcasing the level of fees on the Bitcoin network.
How the transfer fee on the BTC blockchain has fluctuated over the last six months | Source: BitInfoCharts
TON Price
At the time of writing, Toncoin is trading around $1.30, down more than 8% over the past week.
The price of the coin has retraced over the last couple of days | Source: TONUSDT on TradingView
Featured image from Dall-E, chart from TradingView.com
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