The current state of the TON ecosystem is electric! TONXDAO Launch Party 💃🏻 Excitement is in the air as the TONXDAO app goes live, $DAO farming ends, and DAO activation costs increase. These developments are monumental for users, investors, and the entire TON ecosystem. BlockchainShock.com goes deep on these exciting developments to give you a fundamental and contextual understanding of what they mean for our collective future.

TONXDAO App Launch: A New Era for DAOs

Developing the TONXDAO app represents an important step towards decentralized governance as an inherent feature of the Telegram Open Network. Most notably, it greatly simplifies the creation of DAOs (or Decentralized Autonomous Organizations) right within Telegram. This dramatically reduces the barriers faced by creators, businesses, and communities seeking to creatively organize and self-govern in a more decentralized fashion. The app combines gaming mechanics with decentralized finance, providing users with an opportunity to compete, plan their moves and earn real-life rewards. It’s the first step of a larger, innovative approach to create paths for more people to understand DAO participation and have fun while doing it.

Here are some of the key characteristics of the TONXDAO app:

  • Simplified DAO Creation: The app allows users to create DAOs with minimal financial costs, making it easier for communities to form and govern themselves.
  • Gaming and Earning Rewards: The platform integrates gaming with decentralized finance, enabling players to engage, strategize, and earn rewards.
  • Farming $DAO Tokens: Users can farm $DAO tokens, which can be used for various activities within the ecosystem, incentivizing participation and engagement.
  • Tokenomics: The app operates with a unique tokenomics system, with a limited supply of tokens (only 100,000 DAOs can be active at the same time), creating scarcity and potential value appreciation.
  • DAO Reputation: The app allows users to enhance their DAO's reputation by attracting a larger audience and building community trust, fostering a healthy and vibrant ecosystem.

The End of $DAO Farming: Implications and Consequences

One of the most exciting aspects of TONXDAO is the launch of its app. The end of $DAO farming also raises new challenges, questions and uncertainties. Farming — the ability to earn $DAO tokens by participating in and staking — has been one of the biggest draws for users of all sorts. Its cessation could lead to several consequences.

Here's how the conclusion of $DAO Farming may affect the broader ecosystem:

  • Loss of Incentives: The end of $DAO farming may lead to a loss of incentives for farmers and investors, potentially causing a decline in participation and engagement in the ecosystem.
  • Market Volatility: The sudden stop of $DAO farming could lead to market volatility, affecting the value of tokens and assets associated with the $DAO ecosystem.
  • Shift in Investor Sentiment: The end of $DAO farming may lead to a shift in investor sentiment, with some investors becoming more cautious or bearish on the $DAO ecosystem and its potential for growth.
  • Impact on $DAO Token Value: The value of the $DAO token may be affected, potentially leading to a decline in its value.
  • Uncertainty for Future Investors: The end of $DAO farming may create uncertainty for future investors, making it more challenging for them to evaluate the potential risks and rewards of investing in the $DAO ecosystem.

Rising DAO Activation Costs: A Double-Edged Sword

The second major intervention into the $DAO token value/utility picture is the rising price of DAO activation. Deploying on platforms such as Aragon and DAOstack Alchemy is around 2 ETH as of now! That price is set to skyrocket in the coming months.

Impact on $DAO Token and Ecosystem

With these changes, there are significantly important things for users to be aware of and act on. For those looking to create or participate in DAOs, here’s what Emily Tran recommends:

  • Higher Barriers to Entry: As activation costs rise, the cost to build a basic DAO with minimal functionality (potentially ranging from $15,000 to $50,000) may increase, making it more challenging for new DAOs to launch. This could stifle innovation and limit the growth of the TON ecosystem.
  • Reduced Demand for $DAO Tokens: If activation costs become prohibitively high, it may deter projects from creating DAOs, potentially reducing the demand for $DAO tokens and negatively impacting their value.
  • Increased Costs for DAO Development: The costs of building a DAO can range from $100,000 to $200,000 or more for complex projects. Rising activation costs would further exacerbate these expenses.

Actionable Advice for Users

To appreciate the magnitude of these changes, one first needs to understand the bigger picture as it relates to the TON ecosystem. We designed TON with scalability, parallelism and efficiency in mind. This makes it possible for millions of smart contracts to execute in parallel on a constantly expanding, multichain network.

  1. Understand DAO Fundamentals: Familiarize yourself with the purpose, mission, and activities of various Decentralized Autonomous Organizations.
  2. Stay Informed: Keep up with the latest DAO news, proposals, and discussions within the TON ecosystem.
  3. Timing is Key: If you're considering creating a DAO, evaluate the costs and benefits carefully, especially before the August 11th deadline, which may bring further changes to activation costs.
  4. Seek Expert Advice: Contact Homecubes if you have questions about DAOs, fractional ownership investment in Dubai, or any other questions relating to the Blockchain world.

TON Ecosystem: A Broader Perspective

In 2022, TON introduced many innovative tools and features. These functionalities were all related to TON nominators, TON DeFi, developer programs, TON DNS, TON payments, TON proxy, TON sites, and TON storage. In 2023, TON introduced cross-chain bridges, TON Connect, a token toolkit, DAOs, databases, a deflationary mechanism, integration with Telegram, TON Space, Telegram Wallet, and collaboration with Tencent Cloud. These recent advancements further demonstrate TON’s thought leadership and position the blockchain to be one of the most successful, multi-layered, open-sourced platforms available today.

With TONXDAO coming onboard, it is a major turning point for the TON ecosystem. The end of $DAO farming and the increasing cost of DAO activation complicate this dynamic new landscape even more. The app opens up exciting new opportunities for inclusive, decentralized governance. Yet the decline of agriculture and increasing costs are hurdles we need to address to ensure the long-term health and expansion of the $DAO token and therefore the TON community. Be aware and understand the forces moving behind the scenes. Realign for the new reality to thrive in this exhilarating but unpredictable new world.

The launch of the TONXDAO app, the end of $DAO farming, and the rising costs of DAO activation represent a complex interplay of factors influencing the TON ecosystem. While the app offers exciting new possibilities for decentralized governance, the end of farming and rising costs pose challenges that must be addressed to ensure the long-term sustainability and growth of the $DAO token and the TON community as a whole. Staying informed, understanding the dynamics at play, and adapting to the evolving landscape are crucial for navigating this exciting but uncertain future.