In September 2023, TON Foundation and Telegram deepened their partnership with an ambitious goal: to bring 30% of Telegram’s active users into the TON blockchain ecosystem by 2028. This collaboration has unlocked remarkable growth for both organizations, creating a symbiotic relationship that has transformed how millions of users interact with cryptocurrency. This comprehensive analysis examines the strategic approach and impressive results of this partnership over the past year.

The Three-Phase Strategy Behind TON and Telegram’s Blockchain Adoption

The partnership announcement outlined a clear vision of using Mini Apps as a middleware connecting TON infrastructure with Telegram’s massive Web2 user base. To successfully implement this strategy, the TON Foundation needed to address three fundamental questions:

How could they attract Telegram users to Mini Apps? How could these Mini-App users be converted into cryptocurrency users? And critically, how could they retain these cryptocurrency users long-term?

Jack Booth, former head of market development at TON Foundation and co-founder of TON Society, summarized the approach during a podcast interview in August 2023: “We get everyone involved through ‘tap-to-earn,’ then a subset of users can easily do global crypto transactions through DM. Then, a subset of those users will start using more complex DeFi products on TON. That’s the logic of the whole plan.”1

In essence, the foundation’s strategy comprised three interconnected steps: promoting “tap-to-earn” social games to attract users to Telegram Mini Apps, converting Mini-App players into cryptocurrency users through token airdrops, and retaining cryptocurrency users with DeFi applications. Rather than being a rigid top-down implementation, this approach evolved naturally through community-driven innovation.

How “Tap-to-Earn” Social Games Became the Gateway to the TON Ecosystem

After launching the partnership with Telegram, the TON Foundation actively promoted Mini-App development through its community engagement channels. By Q3 2024, GameFi projects began appearing among TON Grants recipients alongside traditional on-chain functionality projects, signaling the foundation’s recognition of gaming’s potential in driving Mini-App adoption.1

January 2024 marked a turning point with the launch of Notcoin, the first phenomenal Mini-App game. This “tap-to-earn” social game quickly became a sensation on Telegram, attracting 35 million users before its Token Generation Event (TGE). Interestingly, Notcoin emerged entirely from community innovation and wasn’t initially planned by the foundation. However, its success prompted the foundation to incorporate social gaming into its funding priorities.1

Throughout the first half of 2024, the number of funded GameFi projects continued to increase. For example, Hamster Kombat and Catizen both launched in March 2024, attracting 300 million and 39 million users respectively before their TGEs.1

By late May 2024, Telegram Mini Apps had reached 400 million monthly active users (MAU), increasing to 500 million by July. Considering Telegram’s total MAU during this period was approximately 950 million, this meant over half of Telegram users engaged with Mini Apps monthly—an impressive milestone achieved in less than 10 months.1

Converting Mini-App Users to Cryptocurrency Adopters Through Token Strategies

The introduction of tokens and airdrops became the crucial next step in converting Web2 players into cryptocurrency users. Points earned through “tap-to-earn” mechanisms were transformed into on-chain tokens with actual market value, incentivizing users to explore and participate in crypto transactions.1

By November 2023, the infrastructure supporting this conversion was in place on Telegram. The Telegram wallet and non-custodial TON Space wallet were integrated into Telegram, enabling users outside the United States to receive Jettons (the fungible token standard on the TON blockchain).1

Notcoin’s launch and subsequent airdrop represented the first significant initiative in this conversion process. Within the first week after Notcoin’s token airdrop on May 16, 2024, 2.7 million of the 35 million users claimed Notcoin tokens, with this number reaching 11 million by August. This impact was reflected in key metrics across the TON ecosystem: activated wallets doubled from 4.2 million to 8.5 million in the first month after the token launch, while wallets with non-zero balances grew from 3 million to 6 million during the same period.1

This success was replicated by subsequent social games like Hamster Kombat (TGE on September 26, 2024) and Catizen (TGE on September 20, 2024). They contributed 3.2 million and 1.8 million on-chain token claims respectively, driving further growth in the number of wallets with non-zero balances in October.1

The GameFi-driven wallet adoption laid the foundation for broader cryptocurrency use cases on TON. For instance, DOGS became the first popular meme coin on the TON network, with its launch in late August 2024 triggering a new wave of wallet activations and paving the way for subsequent game token issuances.1

By November 1, 2024, TON Space (Telegram’s non-custodial wallet) had reached 100 million registered users, while the total number of activated wallets on the TON blockchain (including TON Space and third-party on-chain wallets) reached 34 million.1

User Retention Strategies in the TON-Telegram Ecosystem

After attracting Telegram users to Mini-Apps and introducing them to cryptocurrency, retaining these users within the ecosystem became the primary challenge for both projects and the foundation.1

The retention challenge can be illustrated through the performance of GameFi projects with on-chain transactions on TON. Using daily active unique wallets (UAW) as a metric, the best-performing projects maintained approximately 60% of their daily activity after their active peak. However, for medium and lower-performing projects, retention rates dropped dramatically: second-tier projects retained only 37%, while third-tier projects retained just 25% of active users.1

To address user attrition, the TON Foundation and project teams strengthened user retention through several approaches:

DeFi tool integration: Introducing decentralized exchanges (DEXs), staking, and liquidity mining tools to provide users with more opportunities for managing crypto assets and earning returns.

Reward mechanism optimization: Incentivizing long-term participation in on-chain activities through airdrops and in-game economic design.

User education and support: Helping users become familiar with more complex DeFi applications through embedded tutorials in Mini-Apps and interactive communities, lowering the learning curve.

Ecosystem integration: Guiding GameFi users to other application scenarios, such as NFT marketplaces, DAO participation, and on-chain payments, further expanding TON ecosystem’s value network.1

The Impact on Telegram’s Growth and Monetization

For Telegram, this partnership has driven significant platform growth. By July 2024, Telegram reached a record 950 million monthly active users (MAUs). Meanwhile, Mini Apps achieved remarkable growth, with MAUs reaching 400 million in April 2024 and 500 million by June, meaning approximately half of all Telegram users actively engaged with Mini Apps.1

Another rapidly growing metric was Telegram Premium subscribers. After reaching just 1 million subscribers in December 2022, growth significantly accelerated following the partnership, reaching 5 million by January 2024 and doubling to 10 million by September 2024.1

The enhanced user engagement substantially improved Telegram’s ability to generate revenue from its platform operations. Existing revenue streams like Telegram advertising, collectible sales, and premium account subscriptions all experienced significant growth. Based on collected information and estimates, Telegram’s full-year revenue for 2024 is projected to reach at least $971 million and potentially exceed the $1 billion mark.1

TON Blockchain’s Exponential Growth

As the partnership successfully attracted and converted Telegram users, the TON blockchain experienced remarkable growth. By October 2024, the number of activated wallets had increased from 800,000 in September 2023 to 32 million—a 39-fold increase. Additionally, the number of Jetton wallets with non-zero balances grew to 22 million, indicating that many activated wallets were being actively used.1

User engagement metrics showed equally impressive growth, with monthly active wallets (MAWs) reaching 10 million in October and daily average active wallets (DAWs) at 800,000. Compared to 14 months earlier, both metrics had grown more than 90-fold.1

On-chain transaction volume (measured by number of transactions) reached 200 million in October 2024, a 30-fold increase compared to September 2023, with approximately 60% of transactions involving Toncoin transfers. Monthly on-chain transaction fees increased to $5.1 million, demonstrating the high level of activity within the TON ecosystem.1

Conclusion: A Mutually Beneficial Partnership with Ongoing Challenges

The collaboration between TON and Telegram has significantly enhanced TON’s ability to attract developers and energize its community. The early success of the social game Notcoin catalyzed exponential growth in Telegram Mini App usage, while subsequent initiatives like airdrops and the introduction of meme coins like DOGS successfully brought many Telegram Mini App users into the Web3 ecosystem.1

However, challenges remain. The sustainability of user retention for TON and Telegram Mini Apps after the initial hype still needs to be proven. While games, meme coins, and DeFi all have potential for cultivating a sustainable Web3 user base, achieving the key goal of attracting 500 million users by 2028 still requires a 20-fold increase from the current baseline of approximately 30 million activated wallets.1

To address these challenges, the foundation has shifted from a top-down governance model toward a more community-led approach to resource allocation. This transition aims to empower the TON community to better explore and capitalize on growth opportunities, ensuring that new TON initiatives from communities around the world continue to flourish.1

For Telegram, this partnership has transformed its platform from an occasionally used tool into an indispensable application for users, driving many to subscribe to premium features to further enrich their experience. With enhanced user engagement and growing revenue streams, Telegram is well-positioned for its planned IPO by 2026.1