TonTogether - the most promising lottery project on TON

cryptocurrency 5 months ago

Author - @detective_ton


After TonUP's successful IDO, this leading launchpad on TON has officially launched the first launchpool project, TonTogether, a lossless lottery project built on The Open Network. According to public information, today the author will take you to an in-depth analysis of TonTogether's economic model and product model, and why I think this is the most potential lottery project on TON.


Project Introduction

TonTogether is a lossless lottery project built on TON, and the so-called lossless lottery as the name suggests, even if you don't win, there is no loss. According to the introduction, TonTogether will stake the user's deposited TON to Tonstaker to obtain the interest of the node income, and then randomly draw the income to a lucky winner.


After staking $TON into TonTogether, users will receive $TOT mining in addition to the potential opportunity of the lottery. $TOT, according to the description of the TonTogether website, its total supply is 10 billion, of which 98% is generated by user mining, 1% is given to TonUP DAO (presumably for issuance), and 1% is used for liquidity management. If I'm not mistaken, the team would be hoping for a fair launch, as they had previously received a TonUP 50K grant.


This is exactly what I want to analyze, TonTogether is not a traditional VC-backed project, and this has also aroused my interest in TonTogether. After careful analysis, I think this is probably one of the most promising projects on TON right now.


Introduction to the Economic Model

There are two main parts in the economic model, one part is the token distribution, and the other part is the business model, which together constitute the economic model. Whether a token can sustain its price or even continue to grow depends largely on the design of the economic model, and this is what I find interesting about TonTogether.


For the token distribution, according to the information released by TonTogether on the Telegram Channel, the total supply of 10 billion is distributed by the incentive pool, excluding 2% of the initial circulation.


The business model part is more interesting, with traditional lossless lotteries such as PoolTogether rewarding all earnings to a lucky participant, while TonTogether does not.


The profit part refers to the income generated by user staking. 80% of the revenue will go to the Token Treasure, according to the project team's documents, 50% of the total revenue will be distributed to the winners, and 30% will go to the DAO's treasury to support the issuance and price of $TOT tokens. That is to say, every $TOT will have $TON in the treasury as price support when it is issued.


The remaining 19% will be used for repurchase, and the repurchased Token will be divided into two parts, one part will be injected into the liquidity pool with $TON again to form LP to increase the transaction depth of $TOT, and the other part will be burned directly after the repurchase. The last 1% is the team's revenue, which goes directly to the team.


Unique economic model

When I first looked at this economic model, I actually saw the shadow of Olympus DAO and $OHM, which is what I think is the most interesting part about the TonTogether economic model.


Let me break down this model a little bit, all the people who hold $TOT are actually sharing the revenue generated by the entire protocol, in other words, it is sharing the interest generated by the subsequent user TVL. First of all, except for the initial 2% of circulation, all subsequent $TOT generation has a strong price support, which means that the price of $TOT will have an obvious bottom. Therefore, the generation of each $TOT can be understood as a primary issuance, and the user buys the token with the interest of staking.


Secondly, as the protocol continues to generate revenue, it is also constantly buying back tokens and providing more liquidity. It is clear that the TonTogether Treasury will be the largest liquidity holder in $TOT / $TON in the foreseeable future, and the Treasury will not sell these LP Tokens, so there are two buybacks taking place in the overall economic model.


The first buyback, since the issued token is backed by a price, and the protocol has been using staking interest for buybacks, as an early holder, you are actually earning interest from all stakers. Since the protocol will continue to work, we can assume that new interest will be generated all the time, so $TOT can continue to generate interest.


The second repurchase is an invisible repo, because TonTogether’s treasury have no intent to sell the LP Tokens held by the TonTogether treasury, in fact, users are paying LP fees to the treasury when each transaction is generated. Although this fee is not high (0.3% for LPs in the case of DeDust), it can lead to continuous buying over time.


On top of that, no one in this game gets free tokens except for the first 1% $TOT, and the cost of tokens is generally the same for everyone. However, all those who hold tokens can benefit from the TVL of users who come in later, so users will have more incentive to stake $TON to mine more $TOT, which will also provide higher value support for $TOT.


This is the most interesting part of the whole economic model, it seems that the team does not get any income in the token (no pre-mining, no reserved team tokens), but in fact, the whole economic model is designed as a flywheel to boost TVL. And do you believe that the team won't buy tokens in the early days? I don't believe it anyway.


Write at the end

What's more, there is a lot of room for imagination in this protocol, and it is not a simple lossless lottery protocol. Because it is a Treasury-backed Token, it is essentially a basket stablecoin. With the development of the TON network, I have no doubt that TonTogether will open up more asset types in the future, such as stablecoin lotteries, which will greatly replenish the assets controlled by the treasury.


All in all, TonTogether's economic model is an interest-bearing model that serves TVL growth. As the protocol's TVL increases and revenue increases, the market capitalization of $TOT will increase step by step, which in turn will push up TonTogether's TVL. So it's a first-come, first-served fair launch game, where the first comer gets a cheap chip and shares the interest of the latecomer. I hope we can see something new on Telegram & TON!