The TON Foundation has proposed a burning mechanism for the TON network, which proposes that 50 percent of transaction fees are burned.
This proposal from the foundation includes a burning mechanism similar to Ethereum’s EIP-1559 upgrade, but is designed to have less impact on the TON network.
TON Foundation Aims to Lower Transaction Fees on the TON Blockchain
The TON Foundation is proposing a burn mechanism that will reduce all transaction fees on the TON network by 50 percent. This proposal comes across as a similar strategy to Ethereum’s burning in EIP-1559, which greatly reduced network inflation.
Kirill Emelyanenko, the core lead developer of the TON Foundation, said in his statement:
“In the short term, a deflationary effect of around 350-400 Toncoins is expected, given the daily issuance rate of 71,000 Toncoins. However, as the network volume grows, this amount can increase significantly and lead to a significant reduction in aggregate supply.”
When the burning mechanism is implemented, when a user performs a transaction on the network, some of the transaction fees will be burned while the rest will be directed to the validator. Validators will continue to receive staking rewards for helping the network transact.
Although the TON Foundation recommends setting the cremation mechanism to 50 percent, Emelyanenko stated that this will be determined by validators and the community.
This recommendation must be approved by the majority of TON validators before it can take effect. The suggestion has been forwarded to the validators.
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