#Toncoin One of the reasons why TON is suitable for long-term

The economic model of TON (Telegram Open Network) has been designed quite uniquely since its inception. Initially, the total supply of TON was 5 billion tokens. In terms of the distribution of tokens, the project team only held 1.45% of them, while the remaining 98.55% were distributed through the proof of work (POW) mechanism. However, over time, the network voting mechanism has changed from POW to proof of stake (POS) to ensure the security and stability of the network, while rewarding about 0.6% of tokens each year through the POS mechanism.

As of now, despite the initial supply of 5 billion tokens, the total supply of TON has grown to 5.09 billion tokens due to POS rewards and other factors. In order to further optimize its economic model, the TON community passed an important resolution called "TON Token Economic Model Optimization Proposal" in February 2023.

According to this proposal, in order to promote the active circulation of tokens and avoid waste of resources, it is recommended to temporarily freeze wallets that have been inactive for a long time. The "inactive wallets" here refer to wallets that have never been activated and have no transaction or token transfer records. As of the time of the proposal, there were 171 such inactive wallets, which held a total of more than 1.081 billion TON tokens, accounting for about 21% of the total supply at the time. The tokens of these wallets will be temporarily frozen for 48 months to encourage holders to actively participate in network activities, while also helping to improve the circulation and efficiency of TON tokens.