Telegram becomes TON’s primary validator; DIME exposure shifts

Telegram became the primary validator of The Open Network (TON) in early May, taking operational control of the Layer 1 blockchain and increasing Toncoin’s annual inflation from 0.6% to 3.6%, according to a CoinShares report.

A validator confirms transactions and maintains a blockchain’s operations. Telegram replaced the TON Foundation in the validator role. The company operates an encrypted messaging service with nearly one billion active users.

Telegram launched a relaunch program called MTONGA, short for Make Ton Great Again, organized in seven steps. Two upgrades are live. Catchain 2.0 shortens confirmation times to near‑instant and lowered transaction fees to 0.00039 TON per transaction.

Telegram routes payments and revenue shares through TON for its advertising platform, crypto wallet and channel monetization tools. Advertisers pay in Toncoin and channel owners receive their earnings in TON.

Faster processing and lower fees increase the network’s use for payments and microtransactions and raise token issuance. CoinShares reported that changes to processing parameters drove annual inflation from 0.6% to 3.6%.

CoinShares wrote that “no company of this scale has ever attempted” to run its own blockchain. The report flagged centralization as a governance concern because Telegram’s lead validator role gives the company significant influence over the network’s technical roadmap and operations. The report also noted the founders’ history with Russia and flagged potential state‑level influence on governance.

CoinShares described its DIME Layer‑1 ETF as an equally weighted, regulated vehicle that targets Layer 1 altcoins, screens holdings for liquidity and spreads oversight across a basket of projects. The fund provides exposure to Layer 1 infrastructure without direct project‑level governance or single‑token concentration.

TON launched as a Layer 1 blockchain to support fast transfers and decentralized applications. Telegram’s commercial use of Toncoin ties the token to the company’s services. It is unclear whether Telegram’s stewardship will increase adoption or lead to regulatory or governance issues for users, advertisers and investors.