Oct 04
Moving on from the Tap-to-earn
The TON ecosystem is moving away from its early focus on Tap-to-Earn models, which attracted users but lacked sustainability and long-term engagement.
Introduction
The TON ecosystem, initially dominated by tap-to-earn projects, is experiencing a its next evolution as it moves toward more substantial, long-term participation models. Tap-to-earn was an early success, primarily drawing users in with easy and low-barrier tasks like tapping to gain rewards. While this approach helped the ecosystem gain traction, it had limited capacity for fostering sustainable engagement or significant technological innovation. In response, the TON ecosystem has begun transitioning toward more robust and meaningful projects that contribute to its long-term growth.
The Decline of Tap-to-Earn
The "Tap-to-Earn" (T2E) model is still a major driving force in the TON ecosystem, contributing significantly to user acquisition and engagement. This model allowed users to earn small amounts of cryptocurrency through simple actions, like tapping a button or performing minimal interactions within an app. The simplicity of T2E attracted a broad audience, especially those unfamiliar with blockchain technology, providing an easy entry point to the TON ecosystem.
Projects like Notcoin and Hamster Kombat epitomized the potential of this model. They leveraged Telegram’s massive user base to attract millions of users with the promise of passive, easy-to-earn rewards. In the case of Notcoin, the project amassed over 4 million users within months of its official launch, showing that T2E could drive substantial user growth. Similarly, Hamster Kombat reached 200 million users within just three months, highlighting the appeal of these reward-based systems.
Despite the early success, however, the limitations of Tap-to-Earn are becoming increasingly apparent. While these games managed to onboard millions of users quickly, the model is inherently flawed in terms of long-term sustainability and meaningful user engagement. Tap-to-Earn games are often characterized by minimal user interaction and low-quality gameplay, leading to short-lived engagement. Once the novelty of earning free tokens wears off, users tend to abandon these platforms.
Moreover, the token economies that power these T2E models often struggle to maintain value. The demand for the tokens frequently diminishes after the initial surge, leading to steep declines in token prices. This pattern was evident in several projects where tokens rapidly lost their value after users began cashing out en masse.
Why Tap-to-Earn is Not a Sustainable Future
The unsustainability of the Tap-to-Earn model stems from its reliance on short-term incentives rather than genuine user engagement or long-term value creation. While the model is effective in attracting a large user base initially, it fails to keep these users active and engaged over time. This creates a fundamental flaw in the business model, where user acquisition is high, but retention and loyalty are low.
One major reason why T2E is unsustainable is its dependence on token inflation to reward users. As more users join the platform and earn tokens, the supply of these tokens increases, which dilutes their value unless there is consistent demand. In most cases, the demand for these tokens doesn’t keep pace with the supply, leading to rapid depreciation. As a result, many users who joined for the promise of easy rewards are left holding devalued tokens.
Additionally, the low level of interaction required in T2E games doesn’t encourage a sense of community or long-term commitment. Since the primary motivation for users is to earn tokens quickly and passively, there’s little reason for them to stay engaged once the rewards become less lucrative. Without meaningful gameplay or features that encourage users to invest more time and effort, these platforms often experience high churn rates.
For the TON ecosystem to thrive, it must shift away from these short-term, low-engagement models. Instead, the focus should be on developing more sophisticated, interactive, and rewarding platforms, such as DeFi services, GameFi projects, and NFT marketplaces. These models not only offer long-term value but also foster active participation, creating a more sustainable and engaged user base.
The Rise of DeFi in TON
DeFi is becoming a major driver within the TON ecosystem, as the network seeks to create a decentralized financial infrastructure that offers more opportunities to developers, users, and investors alike. Platforms like Megaton Finance have played a pivotal role in this transition. Megaton, a decentralized exchange (DEX), leverages automated market-making (AMM) technology, enabling users to engage in liquidity provisioning and token swaps. As one of the leading DeFi platforms on TON, Megaton's success demonstrates the shift from basic token earning to more complex financial operations, attracting $3 million in assets in a relatively short period.
TON’s push into DeFi is not limited to exchanges. The introduction of Tonstakers, a liquidity staking platform, further enhances the ecosystem’s DeFi capabilities. Tonstakers allows users to stake their TON tokens in return for rewards, adding another layer of financial engagement. Staking has become an important aspect of TON’s DeFi landscape, with users able to trade $stTON (staking tokens) and take part in a more sophisticated financial system than the tap-to-earn models ever offered
TON's innovative DeFi projects don’t stop there. The launch of The Open League, a $115 million rewards initiative, has created additional incentives for developers and users to contribute to the DeFi space. This program distributes TON tokens to high-performing projects and users, ensuring that DeFi remains a central focus of the ecosystem’s development.
The Growth of GameFi and NFTs
Parallel to the rise of DeFi, GameFi and NFT projects are gaining significant momentum in the TON ecosystem. Unlike earlier tap-to-earn models, which provided little value beyond quick token rewards, the new generation of gaming projects is built around more sustainable, engaging economies. One standout example is Getgems.io, a leading NFT marketplace on TON that is redefining digital ownership through tokenized art and virtual real estate. With over $1 billion in NFT trades already conducted, Getgems is helping to shape the future of the TON ecosystem by enabling artists and creators to interact with global audiences.
GameFi is another rapidly growing area. TON’s GameFi landscape is evolving from simple “play-to-earn” models toward more immersive, engaging experiences. By leveraging TON’s fast and low-cost transactions, developers are able to create complex in-game economies that prioritize enjoyment, with earning potential being an additional benefit. These games are increasingly introducing cross-game assets—NFTs or tokens that can be used across multiple games—further enhancing their appeal
One of the most promising aspects of GameFi on TON is the combination of gaming and decentralized finance. Many games on the network now feature token staking, trading, and liquidity provisioning, blending gaming with the more sophisticated financial tools of DeFi. This merging of worlds is likely to continue as developers explore the potential of creating sustainable, in-game economies with real-world value.
The TON Foundation’s Vision for the Future
The TON Foundation is playing a critical role in driving this shift from tap-to-earn to more complex, high-participation projects. With its focus on long-term growth, the foundation has been actively supporting developers and users through initiatives such as the Open League and The Open Network Fund. The goal is to onboard 500 million users by 2028, and to achieve this, the foundation is committed to enhancing user experiences and providing the necessary infrastructure for more advanced application.
One of the key strategies in this transition is the onboarding of strategic partners such as Animoca Brands and Fireblocks, which are helping to introduce new products and innovations within the ecosystem.. By fostering partnerships and focusing on user education, the TON Foundation is ensuring that developers and users alike are equipped to contribute to the ecosystem’s growth in meaningful ways.
Conclusion: From Tap-to-Earn to Full Ecosystem Engagement
The TON ecosystem’s move away from tap-to-earn projects marks a critical turning point in its development. As it transitions toward more sophisticated DeFi, GameFi, and NFT projects, TON is setting itself up as a leader in the Web3 space. By emphasizing sustainability, user engagement, and financial innovation, TON is ensuring that its ecosystem remains a dynamic, attractive space for both developers and users. The era of tap-to-earn might have sparked initial interest, but the future of TON is being built on projects that offer deeper value and longer-lasting participation.
Disclaimer: Nothing on this site should be construed as a financial investment recommendation. It’s important to understand that investing is a high-risk activity. Investments expose money to potential loss.