A Quick Overview of the Username Auction Platform Fragment Launched on Telegram

Written by: Misty Sea, PANews

On October 28, Telegram founder Pavel Durov announced on the app that, as previously promised, the feature to purchase Telegram usernames on the dedicated platform Fragment has been launched, and the username auction has begun. Additionally, the feature to sell existing usernames on Fragment will be available in a few days.

The launch of username auctions on Telegram signifies that the power and assets of social media platforms have begun to shift into the hands of users. This is a start and an important milestone. As Pavel Durov stated, this is the first time in social media history that a fair and transparent username market has been established, where people will own their social media addresses, protected in an immutable ledger on a decentralized blockchain network. In this article, PANews will interpret the mechanisms, processes, and current developments of the TON public chain related to Telegram's dedicated auction platform Fragment.

Fragment Platform Mechanism

Fragment is Telegram's dedicated username trading platform, supporting direct, secure, and anonymous sales and public auctions, allowing everyone to participate. To facilitate transactions between users, Fragment adopts a free mechanism. Fragment guarantees fair and transparent services based on the blockchain technology TON developed by Telegram.

The usernames currently available for auction and collection on Telegram are attractive and secure usernames that can be used in its rapidly growing ecosystem. Users can also obtain username collectibles for free through other services, and those who own username collectibles can unlock cross-platform permanent privileges.

During the auction process, some usernames will be reserved and offered later. Usernames currently used by existing Telegram users cannot be auctioned temporarily, but there may be opportunities to convert them into collectibles in the future.

Therefore, if your Telegram username is rare or your favorite name, you may want to keep it for the future when the feature to convert existing usernames into collectibles on Fragment is launched. You can also change to a rare or preferred username now. It is important to note that the usernames mentioned here refer to the personal IDs set by users in Telegram, not nicknames.

How to Purchase Username Collectibles?

Users need to connect to Fragment using their Telegram account and Tonkeeper wallet after entering Fragment. Then, they can bid on any available auction items in the featured list on the Fragment homepage or the search bar at the top.

Purchasing collectibles on Fragment requires using Toncoin tokens, and the amount needed depends on the current highest bid. According to Coinmarketcap data, Toncoin tokens are listed on exchanges such as Huobi, OKX, and Kucoin. Users will then need to recharge Toncoin tokens into their Tonkeeper wallet.

In the bidding process, whoever's bid is recorded on the blockchain first will win at that price. If your bid is not successfully recorded on the blockchain before the auction ends, it will be refunded, and you will lose the opportunity to bid. If someone bids higher than you, your funds will also be refunded. Since the blockchain recording process takes time, users may need to wait from a few seconds to 30 minutes.

According to official information from Fragment, the username collectibles obtained from the auction will not only serve as collectibles but will also have other empowering features and privileges in the future. Additionally, as mentioned by Pavel Durov in information released on August 23, 2022, a market for "usernames, groups, and channel links" will be launched, suggesting that Fragment will also introduce an auction market for "group and channel links" in the future.

Current Development of the TON Public Chain

TON, short for The Open Network, is a decentralized first-layer blockchain designed by Telegram for billions of users, featuring scalability and sharding capabilities. According to official information, it boasts ultra-fast transactions, low fees, and user-friendly applications, utilizing a POS mechanism.

According to TON's official plan, a Bitcoin and EVM-compatible chain will be launched in 2023. Currently, the TON network has processed 85 million transactions, with 1.39 million accounts and 232 validation nodes. The official Twitter account has 171K followers. According to Coinmarketcap data, the circulating market value of the TON network is $2 billion, ranking 31st overall, with a total market value of $8.4 billion.

The development of the TON network has been somewhat tumultuous. At the end of 2018, Telegram's founder Durov released the first version of the TON network white paper and raised $1.7 billion through the public sale of TON tokens. On May 15, 2020, Durov announced that the TON network was forced to cease operations due to a U.S. court ruling, after which the TON community restarted the TON Blockchain testnet. The TON mainnet was launched in the second quarter of 2021.

According to CoinDesk, on April 11, 2022, the TONcoin Fund announced a $250 million ecosystem fund to support projects developed on TON, with investors including Huobi Incubator and Kucoin Ventures. The incubated project categories include DEX and NFT projects. On April 12, according to insiders, the governments of Cameroon, the Democratic Republic of the Congo (DRC), and the Republic of the Congo plan to launch localized stablecoins on the TON blockchain.

Telegram is taking a significant step forward in existing Web2 social media by using smart contracts similar to NFTs based on its TON blockchain to establish ownership of users' usernames on the blockchain.

Currently, personal IDs on social media platforms such as Twitter and Weibo can be reclaimed by the platform at any time or registered by others due to account bans. For users, their personal IDs only temporarily belong to them. Moreover, by launching the Fragment auction platform, a trading market for usernames has been established, allowing usernames to gain greater value through trading and liquidity.