You project parties are really bad, and you want to trick me into staking?

But this time it seems a bit different.

On July 6th, TON officially announced a collaboration with the UAE, starting to offer a 10-year UAE golden visa to TON token stakers. Currently,TON official websiteThe application entry has been launched, and you can apply by filling in your email, full name, and TON wallet address.

In the past, staking was an important way for crypto players to participate in projects and earn rewards and rights.

In recent years, the rights associated with staking have gradually become illusory. After market education, participants are more cautious in choosing to stake, fearing the opportunity cost caused by locking assets, and are even more afraid of becoming the liquidity exit for others.

Compared to the voting rights that are virtually meaningless and the possibility of losing APR on the native currency, exchanging tokens for the government-backed residency rights to open a passport for living, working, and investing in the UAE seems much more practical.

To some extent, this also means that the “residency rights” in the real world can also be tokenized.

As the wave of tokenization sweeps through asset classes such as real estate, government bonds, and stocks, residency rights clearly have no precedent; and when “investment immigration” appears in another on-chain form, how feasible is it?

100,000 USD Token, 10 years visa validity

Let’s first take a look at the detailed description of this golden visa on the TON official website.

First, investors need to stake TON tokens worth $100,000 (calculated at the market price at the time of staking) and lock them in the Toncoin network’s smart contract for 3 years (36 months), during which they cannot be withdrawn.

In addition, the applicant is required to pay a one-time fee of $35,000, which covers the administrative approval and identity verification costs of the visa.

That is to say, the investor’s cost includes $135,000, as well as a 3-year lock-up period.

The income can be roughly divided into three parts:

• Token earnings: During the staking period, you can also earn an annualized return of about 3-4%, and the earnings are distributed in the form of TON tokens.
• Residency: Investors can obtain a 10-year Golden Visa in the UAE.
• Family benefits: The Golden Visa not only benefits the main applicant but also allows their immediate family members to enjoy residency rights. Spouses, children, and parents can also be included in the family visa scope and similarly receive a 10-year Golden Visa.

In contrast, to obtain a golden visa through traditional means, investors need to have a property worth at least $540,000 (2 million dirhams) or an equivalent fixed deposit, and they cannot sell the property or withdraw the deposit during the application process and after obtaining the visa; the restrictions are very strict.

The purpose of this design requirement is to ensure that the applicant has sufficient financial capability to stay in the UAE and bring long-term investment to the local economy.

But for investors, this means that funds are “locked up”, losing liquidity and investment flexibility. In contrast, the $100,000 stake in Toncoin Staking can be unlocked after 3 years, retaining higher asset liquidity, which is a key point of its appeal.

In addition, traditional visa application routes typically take at least 3-6 months; TON has reduced this process to under 7 weeks, significantly lowering both the capital and time thresholds for the Toncoin stake program.

What are the benefits of a golden visa?

Since its launch in 2019, the UAE Golden Visa has attracted high-net-worth individuals from around the world with its flexibility and high added value. The benefits of this visa lie not only in the long-term residency rights but also in the conveniences it brings in terms of living, business, and wealth management.

First, the Golden Visa offers a validity period of 10 years, which can be renewed, allowing holders to live, work, and study freely in the UAE. Starting in 2024, the requirement to reside for 6 months each year will be removed, making it suitable for globally mobile digital nomads.

Secondly, the UAE has no personal income tax, capital gains tax, or value-added tax, and foreign exchange flows freely, which provides an ideal wealth management environment for traditional and crypto investors.

From a geographical perspective, the UAE is located at the crossroads of Asia, Africa, and Europe. Dubai and Abu Dhabi are global business and financial centers, and obtaining a local visa is also beneficial for business development.

It is worth mentioning that Dubai’s free trade zones (such as DMCC) offer zero tariffs and 100% foreign ownership, making them suitable for cryptocurrency businesses and blockchain startups to establish operations.

For crypto players and investors, the golden visa is not just a residence right, but also an asset allocation tool.

As mentioned earlier, compared to the traditional non-liquid investment of $540,000, the $100,000 stake plan for Toncoin can be unlocked after 3 years, retaining the liquidity of digital assets. This allows investors to enjoy tax benefits and the business ecosystem in the UAE while flexibly adjusting their investment portfolios when the market rebounds.

Perhaps the allure of the golden visa lies not only in its material returns but also in the window it opens to the global market for the cryptocurrency community.

However, it is important to note that the current description on the TON official website states, “During the visa processing, the details of the application will be reviewed by our issuing partner in the UAE and guidance will be provided,” which also means that the visa benefits provided by TON may not directly come from cooperation with the UAE authorities, but rather through intermediary agencies for specific execution.

From void staking to residency tokenization

In the crypto industry, staking is usually tied to voting rights or meager returns, but often lacks substantial value.

Many projects’ stakers not only lack governance influence but also miss out on liquidity due to locked assets, becoming “bag holders” when VC coins are disproven and the market declines. This kind of “nihilistic” stake has led most players to question its significance:

The funds locked in often only yield hollow promises.

Toncoin, in conjunction with the UAE’s Golden Visa program, allows for a stake of $100,000 in TON to be converted into a 10-year residency permit.

TON relies on the massive user base of Telegram, and has previously focused on social scenarios, but the performance of the Token in this cycle seems to be less than satisfactory. The new ways that have emerged this time are clearly more topical.

If the operational process is simple and complies with regulations, it can be expected that a portion of high-net-worth individuals and large on-chain holders in the globally mobile crypto community will be interested in this approach, which will correspondingly increase the demand for Toncoin.

Ignoring the $100,000 threshold and various legal systems for now, compared to other crypto projects, the latter two benefits clearly elevate the advantages of staking to another dimension.

Of course, whether staking is worthwhile is a matter of personal opinion. However, even if TON completely goes to zero after 3 years, it would be roughly equivalent to spending 100,000 USD to obtain a 10-year residency in the UAE; while for other projects, if their tokens go to zero, you might end up with nothing.

In addition, from a broader perspective, the UAE also has crypto ambitions.

Dubai’s “Blockchain Strategy 2020” has attracted over 200 enterprises to settle in the region, and in 2024, Abu Dhabi will launch a crypto regulatory sandbox, further consolidating its position in the digital economy.

The Golden Visa program may be an extension of this ambition. By attracting crypto capital, the UAE can not only enhance its economic competitiveness but also vie for a place in global digital asset governance.

In a certain region, investors are granted residency rights through the staking of tokens. A few years ago, this might have seemed like science fiction, but it has now become a reality.

Since the beginning of this year, more companies and governments have started to implement cryptocurrency reserve plans, which indicates a trend of cryptocurrency being gradually accepted in more regions of the world. For individuals holding cryptocurrencies, “geographical arbitrage” is also becoming easier.

Imagine if there will be a “digital nomad identity market” in the future? Investors could bid for residency rights on the blockchain, and even some radical countries might tokenize citizenship.

This is not only a feasibility discussion on the crypto sector’s outreach but also a new opportunity to reshape the flow of global capital and talent.

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