YEREVAN (CoinChapter.com) — On Nov. 1, the TON Foundation launched Society DAO, a new governance model designed to address decentralization issues in the TON ecosystem. Society DAO tackles challenges in accessing capital and managing decentralized operations. It introduces fresh approaches within the Open Network (TON), a blockchain connected to Telegram. The founding members of Society DAO include TON Core, TON Society, Wallet in Telegram, and TON Studio.
Notably, Steve Yun, President of the TON Foundation, presented Society DAO at The Gateway event. He highlighted the DAO’s focus on transparency, autonomy, and increased community involvement. With Society DAO, the foundation aims to shift decision-making power to the community. This approach enables members to oversee resource allocation and also align their goals with TON’s continued growth.
TON Foundation Highlights Centralization Risks in the Network
TON Foundation leaders Steve Yun and Jack Booth, co-founder of TON Society, raised concerns about centralization risks within the TON ecosystem. They emphasized that many projects within TON currently depend on the TON Foundation as a primary source of capital. Consequently, this is a situation that could create a single point of failure.
The foundation noted,
“Over the past year, many founders have relied heavily on the foundation for success, as it often serves as a central hub for capital.”
Jack Booth – Co-Founder of TON Society: Source: XThis reliance on centralized funding presents potential risks to TON’s decentralized goals. Society DAO aims to counter this by distributing power and offering the community more control over decisions in the network.
To address these concerns, TON Foundation is introducing open-source capital access, transparent resource records, and performance-based rewards. Through its Community Model, Society DAO empowers respected community members to make decisions around resources, ensuring the network’s growth is community-driven. This structure aims to reduce reliance on centralized sources while encouraging competition and autonomy in the TON ecosystem.
Wallet in Telegram Expands Self-Custody Features for Users
In a related development, Wallet in Telegram announced an update integrating both custodial and self-custodial options for users, marking a shift in its service. Previously custodial by default, the Wallet now includes TON Space. This is a self-custody solution launched in September 2023 that was previously available in beta.
TON Space has attracted more than 100 million users as an alternative self-custody option. With this update, it becomes a standard choice alongside the Wallet’s custodial services, giving users the option to manage their assets independently.
Andrew Rogozov, CEO of The Open Platform, shared insights into the update, stating,
“We want TON Space to become a gateway for the entire TON ecosystem, empowering Telegram’s 950 million users to access decentralized applications built on TON.”
With the update, TON Space aims to expand the accessibility of blockchain solutions to a larger audience. This will enhance user control over digital assets within the TON ecosystem.
TON Foundation Supports Society DAO with Grants and Resources
In addition, despite Society DAO’s focus on decentralization, the TON Foundation will continue to support its development by providing grants and funding. According to the foundation, while the Society DAO is structured to distribute power among community members, the TON Foundation remains committed to contributing financially to sustain the ecosystem’s growth.
This model provides a framework that combines decentralized goals with stable financial support. This would create a system where Society DAO can guide the TON ecosystem toward a more distributed governance model. Notably, through its contributions to Society DAO, the foundation aims to balance centralization risks and promote broader participation across the TON community.
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