Every day new tokens are creating on variety of blockchains. Very few of them have a purpose or a plan to survive long time. Some of them are designed to be rug pull and few of them are desgiend to be a distraction in grand scheme of things. But all of this is only possible if the people invest into the tokens.
So the liquidity is very much important for the tokens and the DeFi pairs. As liquidity of the certain set of the pairs is what makes the tokens useful in the grand scheme of things. So there are some of the blockchains who encourage consumers through contest of liquidity provider system.
TON Foundation has decided to offer the rewards to the users who provide the liqudity to the project tokens under it's ecosystem.
Let's talk about it.
What is The Open League?
TON foundation has created a pilot program in which it aims to distribute 30 million ton coins to the projects where they get the liquidity providers. This is to boost the network and also the usage of the tokens that are under it's ecosystem, this way they want to improve and also increase the adoption and circulation of the tokens under the TON ecosystem.
Each project on the open league is going to compete for the use case. And their struggle is going to produce the use for the TON coin and its ecosystem. Which would help both the liquidity providers and also for the people who choose to invest into these projects. In turn this would make the value of the TON coin more higher in the market. Which is the goal at the end. You can read about the project here.
How does one earn from the Open League?
There are two ways that one can earn from the open league. And those ways are - earning through tokens and earning through squad activity. So first thing you would be doing is you have to find the find the project that you can connect with and then pick the token and then add some form of the liqudity to the project. And then finally you claim the rewards.
You can also earn through joining the squad. You pick a squad then join with the fee and then you start earning the points. Based on the points that you accumulate you would be able to get the airdrop of the tokens that is distributed for the squad. And that would be second method for you to earn the rewards. So that's a win in both sides there.
So what is the goal of such project? The goals is trying to create the activity around your main layer 1 token in this case the TON. And as the layer 2 projects and their respective tokens are traded they are going to help with the layer 1. And that in turn would be building the liquidity on the DeFi side too. So something like this contest would be adding some traffic into the chain too.
A lot of projects need the liquidity and also the market use case validation. Without these two things, you are not going to grow any further. A lot of money is going to be burned here 115 million to be precies and more as the project income gets balanced the less here would be funding in the process. In short that would make a lot of long term changes in layer 2 adoption too.
Ton foundation's Open League would make a good difference in the adoption and the liquidity for the layer 2 project tokens through such seasonal program. Let's see where the price of TON coin goes as this contest succeeds.