Toncoin (CRYPTO: $TON) is up 35% on May 5 after messaging app Telegram announced it is taking a more direct role in the token's network and lowering transaction fees.
TON is currently trading at a four-month high of $1.80 U.S.
Toncoin is the native token of The Open Network, a Layer 1 blockchain designed to integrate crypto payments and applications within the Telegram messaging platform.
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Moving forward, Telegram will replace the Ton Foundation as the driving force behind Toncoin, managing the network and offering reduced fees.
On social media, Telegram founder Pavel Durov said that the messaging platform would become TON's largest validator and take over as the driving force behind the ecosystem.
He added that Telegram will bring new developer tools, performance upgrades, and a refreshed platform to Toncoin.
A validator is a participant responsible for verifying transactions, ensuring network security, and maintaining the accuracy of a blockchain.
Durov also said on X that TON fees will be reduced sixfold to near zero, with most transactions moving towards a fee-free model.
Near-zero transaction costs will apply to games, bot payments, mini-app transactions, collectibles, and small retail transfers carried out on Toncoin's network.
Telegram's estimated monthly users have been estimated at one billion, though the company has not publicly confirmed its user data.
As a privately held company, Telegram's stock does not trade on a public exchange.
