The Free TON–Dune Network merger represents one of the first decentralized M&A deals.
Free TON, a community-driven blockchain promoting decentralized self-governance and freedom of speech, has acquired Dune Network through a community merger mechanism that was recently approved by both camps.
An amended Dune community partnership proposal filed in January was approved on Tuesday, bringing the Free TON merger one step closer to fruition. Dune Network, which is a decentralized platform for distributed applications, said the merger will strengthen both communities and support the global adoption of decentralized governance.
Ben Sunderland, Dune Network’s community manager, said:
“Our vision is to create the blockchain ecosystem’s first true decentralised Merger and Acquisition. With our shared values, we feel a merge of the Dune Network community into the Free TON community will yield significant benefits for both parties, and the wider blockchain industry.”
According to Sunderland, the merger provides Free TON with several benefits, including an experienced community, a transfer of all social media to Free TON accounts, roughly 30,000 accounts and smart contracts, and access to Origin Labs, a new research arm that can contribute to Free TON’s development.
Fabrice Le Fessant, president of Dune Network and CEO of Origin Labs, told Cointelegraph:
“The merge between Dune and Free TON is a wonderful event for both our communities. I already see many of our members exchanging, and I am looking forward to more, as both techs are very complementary. With this merge, we’re all together contributing to the acceleration of the Free TON technical leadership in the market.”
Under the proposal, Free TON will allocate an agreed-upon amount of TON Crystal — the native asset of the Free TON blockchain — to Dune Network. Dune Network community members will decide whether they want to swap their tokens for the TON Crystal.
The merging process — which consists of proposal validation, the development of swapping infrastructure and the actual swapping period — is expected to last roughly six months and cost 9 million TON Crystal, which is equivalent to Dune Network’s market capitalization. The merger will be funded through contests on the Free TON network, according to Sunderland.
One TON Crystal is currently valued at around $0.40, according to CoinMarketCap, while Dune Network’s native DUN token trades at less than $0.02. Both cryptocurrencies rose sharply on Tuesday, possibly in conjunction with the merger developments.
As Cointelegraph previously reported, Free TON launched in May 2020, building on Telegram’s codebase. The project launched its mainnet in December 2020 after achieving “sufficient decentralization.”