TON Foundation Proposes Burning 50% of Validator Rewards

The TON Foundation has proposed a new mechanism to burn 50% of transaction fees on the TON network, effectively cutting validator rewards in half.

TON Foundation Proposes Burning 50% of Validator Rewards

The new proposal by the TON Foundation suggests that, when users transact on the network, a portion of the transaction fee will be burned, while the remaining portion will be distributed to validators as usual. The organization is proposing a 50% burn rate, but the final decision will be subject to validation and community approval.

This proposal is similar to Ethereum's EIP-1559 fee model, which aims to find a balance in the amount of gas fees users pay. Under the current model, validators are incentivized to prioritize gas fees from high to low, which can result in users paying relatively high fees for transactions.

Read More: TON Token Project

Kirill Emelyanenko, Core Developer at the TON Foundation, stated:

"In the short term, the deflationary impact of the burn proposal seems modest, estimated at around 350-400 Toncoin per day, while the daily issuance rate is 71,000 Toncoin. However, as network volume increases, this number could rise significantly, leading to observable deflation in both total supply and circulating supply."

The proposal is currently under active discussion within the validator community. The staking rewards for validators are expected to remain unchanged.

TON's price has seen a slight decrease following the proposal, currently standing at $1.78.

7-Day TON Price Chart via CoinMarketCap