Today, TON validators will vote on a proposal to adjust the circulating supply of the Toncoin. If approved, the Toncoin circulating supply will be reduced by 20%— freezing it for the next 48 months and then unfreezing it.
Toncoin’s market capitalization might also be reduced due to the tokenomics proposal, but it will boost the transparency of the ecosystem.
Boosting decentration through tokenomics
Cryptopolitan reported that TON proposed freezing inactive accounts from the first TON miners. However, these wallets equate to 20% of the entire Toncoin supply.
Nonetheless, the tokenomics proposal will reduce the total TON supply to around 4 billion tokens, and the frozen mining coins will be slowly unlocked. According to the TON team last week, tokenomics aims to boost the network’s decentralization by reducing the wallets owned by the whales.
Furthermore, only whales with more than 300,000 TON coins (approx. $700,000) are eligible to become network validators—although pools are available for those with fewer TON coins to stake.
Due to the freezing of most of the TON coins, the team stated that:
“The reduction in liquidity may attract new investors, but, on the other hand, the centralized control of frozen addresses may scare off other investors because of the perception that their address could be frozen at any time.”Toncoin Team
TON coin price outlook
TON has experienced a 1% marginal gain at the time of writing. Also, there has been little price movement in TON prices in the past few months. Surprisingly, TON only gained 8.3% since the start of 2023.