As a result of the second closed round of the ICO, the Telegram project was able to attract more than $1.7 billion in investments. At this level of demand, the organizers may well abandon the public stage and draw all necessary funds at the closed round of Gram token placement. Which services within the Telegram ecosystem will use Gram and how will the cryptocurrency of the most promising project of 2018 work?
About the Telegram Ecosystem
According to the white paper, the idea of launching the project belongs to Nikolay and Pavel Durov, whose goal is to provide mass holders of cryptocurrency with a convenient, scalable and fast platform for working with their assets. To this end, the project will launch the Telegram ecosystem, which includes integration with the messenger consisting of a blockchain, internal cryptocurrency Gram, crypto wallet, and a wide range of services.
At the core of the ecosystem is the multi-blockchain Telegram Open Network (TON), whose architecture provides for the PoS (Proof of Stake) algorithm of consensus, as well as a master chain and accompanying blockchain networks. This approach will avoid scalability problems as TON blockchains can be automatically split and combined to ease the load on the entire network. The absence of long queues of transactions to get into the block will contribute to low commission fees. Moreover, any block from the blockchain can become an independent network, and a smart routing system will provide instant information exchange between all TON blockchains. This solution will allow the network to process up to a million transactions per second.
In addition, the Telegram ecosystem will make such services available to users as:
TON DNS, a Domain Name System;
TON Storage, a decentralized file storage;
TON Services, a platform for third-party services that provides an intuitive interface for decentralized applications and smart contracts;
TON Payments, a platform for micropayments and a network of micropayment channels.
About the Gram
The Gram token is the internal Telegram ecosystem cryptocurrency. Total Gram emission is 5 billion tokens. Platform users can use Gram tokens to pay for or use any physical or digital assets provided by individual vendors in the Telegram ecosystem. Gram tokens can also be used for:
Payment of commission fees for the work of TON nodes (validators) when confirming transactions and smart contracts;
In the form of stakes of TON network validators, which will approve transactions and create new blocks;
To transfer debt to the validators in exchange for a share of the commission;
Voting rights to support, or, conversely, speak out against innovations in the work of the network protocol;
Payment for services provided by platform applications (TON Services);
Payment for data storage (TON Storage);
Payment for registration of domain names (TON DNS) and hosting of TON sites (TON WWW);
Payment for anonymity and concealing IP addresses (TON Proxy);
Payment for circumvention of censorship by local internet providers (TON Proxy).
To ensure the launch of the Telegram ecosystem in mid-February, the project organizers held the first closed round of Gram token sales, which brought the project $850 million. Investors were offered a "simple agreement for future tokens" (SAFT), within which the tokens themselves will be made available only after the launch of the TON blockchain, scheduled for the fourth quarter of 2018. Each agreement will be converted into Gram tokens at a 1 to 1 ratio.
After the launch of TON, the annual inflation rate envisaged by the fundamental parameters of the TON network will be 2%. This inflation will be ensured by payments that will be made by all community members in the form of payment for the work of validators that support the operation of the TON network.
4% (200 million Gram) of all released tokens with a usage limitation period of 4 years are stipulated for the developers. 52% of all tokens will be frozen within the TON Reserve to avoid speculative trading and to maintain a certain level of flexibility in the early stages of the launch of the ecosystem. The remaining 44% of the tokens (2.2 billion Gram) will go on sale, and their value will be formed by the following formula:
pn: = 0.1 × (1 + 10 − 9)n USD
Provided that the first token was sold at a price of $0.1, each subsequent token will cost one billionth of a share more than the previous one. As a result, additional tokens listed from TON Reserve will always be more expensive than those that were already purchased by participants of the event. This structure makes it easy to determine the fair value of the tokens being sold.
To work with the token, platform users will be provided with a "light wallet", which will allow storing the cryptocurrency without having to load the entire TON blockchain. These wallets will be integrated into the Telegram ecosystem, which will permit Gram holders to work with all applications and services. There will also be desktop and mobile versions of the light wallet.
Why Gram Can Refrain from Conducting a Public Round of Sales
Given the popularity of the project and the funds already raised, many experts are sure that the project can refrain from holding a public round of attracting investments.
In the February report of the Securities and Exchange Commission (SEC), the organizers of the token said that the project attracted $850 million from 81 major investors. According to varying information, the minimum amount for participation in the presale was $10 million, and even before the start of fundraising, the book of applications was overfilled. In the second round, which was reported to the SEC on March 29, another $850 million was raised from 94 investors, after which the total investment in the project was $1.7 billion.
Anthony Pomppliano, General Partner of Morgan Creek Capital Blockchain, noted:
"The goal of any fundraising event is to get sufficient funds to start a project or company. Apparently, Telegram has already achieved this goal, and therefore it makes no sense to hold a public round."