You group of project parties are very bad, do you want to trick me into staking?

But this time it seems a bit different.

On July 6th, TON officially announced a partnership with the UAE to begin offering 10-year UAE golden visas to TON token stakers. Currently,TON official websiteThe application portal 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 obtain returns and rights.

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

Compared to the illusory voting rights and the potential loss of native currency APR, exchanging tokens for the endorsement of residency rights by the state to open a passport for living, working, and investing in the UAE seems much more tangible.

To some extent, this also means that the “right of residence” 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 US dollars 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 $100,000 worth of TON Token (calculated at the market price at the time of staking) and lock it for 3 years (36 months) through the smart contract of the Toncoin network, during which it cannot be withdrawn.

In addition, the applicant must pay a one-time fee of $35,000, covering the administrative approval and identity verification costs of the visa.

In other words, the investor’s cost includes $135,000 and 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 annual yield of approximately 3-4%, with the earnings distributed in the form of TON tokens.
• Residency: Investors can obtain a 10-year Golden Visa for 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 obtain a 10-year Golden Visa.

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

The purpose of this requirement is to ensure that applicants have sufficient financial capacity to remain in the UAE and contribute long-term investments 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 attractiveness.

In addition, applying for a visa through traditional routes takes at least 3-6 months; TON has compressed this process to less than 7 weeks, significantly lowering both the capital and time thresholds for the Toncoin stake plan.

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 long-term residency but also in the conveniences it brings in terms of lifestyle, business, and wealth management.

First, the Golden Visa offers a 10-year validity period, which can be renewed. Holders can live, work, and study freely in the UAE. Starting from 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 there is free flow of foreign exchange, which provides an ideal wealth management environment for both traditional and crypto investors.

From a geographical perspective, the UAE is located at the crossroads of Asia, Africa, and Europe, with Dubai and Abu Dhabi being global business and financial centers. 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 it suitable for crypto businesses and blockchain startups to establish themselves.

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 in the Toncoin plan can be unlocked after 3 years, retaining the liquidity of digital assets. This allows investors to enjoy tax incentives and business ecology in the UAE while flexibly adjusting their investment portfolio when the market rebounds.

Perhaps the allure of the golden visa lies not only in its material returns but also in the fact that it opens a window 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 application details are reviewed by our issuing partners in the UAE, who provide guidance,” which also implies that the visa benefits offered by TON may not come directly from cooperation with the UAE authorities, but rather be executed through intermediary agencies.

From staking in the void to tokenization of residency rights

Staking in the cryptocurrency industry is often linked to voting rights or meager returns, yet it often lacks substantial value.

Many stakers of projects not only failed to gain governance influence, but also missed liquidity due to lock-up, becoming the “bag holders” when VC coins were debunked and the market declined. This kind of “nihilistic” stake has led most players to question its significance:

The funds locked up often only bring hollow promises.

Toncoin, along with the UAE’s golden visa program, converts a $100,000 TON stake into a 10-year residency permit.

TON relies on Telegram’s large user base and has previously focused on social scenarios, but the performance of the token in this round seems unsatisfactory. The new gameplay that has emerged this time is clearly more topical.

If the operational process is simple and compliant with regulations, it can be expected that a portion of high-net-worth individuals and major players in the crypto space, which emphasizes global liquidity, will be interested in this approach, and accordingly, the demand for Toncoin will also increase.

Without considering the $100,000 threshold and various legal systems, compared to other crypto projects, the latter two rights obviously bring the benefits 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 in three years, it would be roughly equivalent to spending $100,000 to obtain a 10-year residency in the UAE; whereas if other project tokens go to zero, you might end up with nothing.

Additionally, from a broader perspective, the UAE also has ambitions in cryptocurrency.

Dubai’s “Blockchain Strategy 2020” has attracted over 200 companies, 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 strive for a seat at the table 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 actually indicates a trend of cryptocurrencies being gradually accepted in more regions of the world. For individuals holding cryptocurrencies, “geographical arbitrage” is also becoming easier.

Imagine a future where a “digital nomad identity market” might exist. 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 cryptocurrency going mainstream, but also a new opportunity to reshape the flow of global capital and talent.

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