Tap-to-Web3: How Telegram Games Are Transforming the TON Ecosystem and Blockchain Industry

The TON team has set an ambitious target to onboard 30% of Telegram users to the Web3 ecosystem by 2028. With Telegram’s potential user growth, this translates to attracting around 500 million people. This initiative capitalizes on the synergy between blockchain gaming and platform payments, positioning TON as a potential leader in the Web3 space.

Blockchain Gaming and Platform Payments: The Dual Strategy

To achieve this goal, TON focuses on two primary areas: blockchain gaming and platform payments. While gaming apps are the flagship of this strategy, the integration of payments within the platform also holds substantial promise. However, it’s worth noting that the volume of assets locked in TON is significantly lower than in competing blockchains like Tron and Solana, which also focus on fast and affordable payments.

Current Challenges and Comparisons

TON faces substantial challenges in matching its competitors. The total value locked (TVL) in smart contracts on TON is more than ten times lower than Tron and eight times lower than Solana. Similarly, the offering of stablecoins, which are essential for many users, is less robust on TON.

The Role of Social Gaming in Web3 Adoption

Social gaming is seen as a potential bridge to Web3 adoption, but current popular gaming projects on Telegram lack direct blockchain integration. For instance, tokens like NOTcoin were initially in-game currencies and only later converted to digital assets. This partial integration means these games primarily attract users to blockchain for reward distribution, requiring wallet or exchange account registration.

User Conversion and Engagement

Despite financial incentives and the user-friendly interface of the Telegram wallet, the actual conversion rate of gamers to active Web3 users is low. Messari data shows that only about 12% of users who claimed NOT tokens actively engaged with the project. Even among engaged users, only 6% of the declared audience holds NOT tokens.

Insights from Other Gaming Projects

Other gaming applications on Telegram show similar trends. For example, the conversion rate from attracted Telegram users to unique active wallets (UAW) is low across top projects. Projects like Catizen and YesCoin, which use a Play-to-Airdrop model, require wallet connection only for reward collection, limiting deeper blockchain engagement.

Post-Reward User Retention

Post-reward retention is a significant issue. Many users interact with the blockchain only to withdraw and sell their rewards, gaining minimal knowledge about the broader industry. This trend is exacerbated by the seamless Telegram interface, which requires little understanding of blockchain principles. The longevity of user engagement in Web3 after receiving rewards remains questionable.

Evaluating the Future of TON’s Strategy

TON’s strategy hinges on whether social gaming can drive substantial Web3 adoption. Given the current low conversion rates, reaching the target of 500 million users seems challenging. However, according to analysts at Messari, even a 5% conversion rate could position TON as an industry leader.
The broader question remains whether gaming applications can maintain user interest and retention in the Web3 ecosystem post-reward distribution. Success depends on whether users are defined as those who have interacted with decentralized infrastructure at least once or as an actively engaged audience.
In conclusion, while social gaming is perceived as a key growth driver for TON, its effectiveness in achieving the ambitious user conversion goals remains uncertain. The future success of TON’s approach will depend on its ability to foster a more profound and sustained engagement with Web3 beyond initial reward incentives.