TON founder: The ups and downs of Pavel Durov’s life
If TON can effectively manage the current crisis and turn it into momentum to boost the project, this incident could become a turning point for TON towards wider adoption.

Author: starzq ; Source: Web3Brand
When I discussed the TON ecosystem with Yan Xin last week, he recommended that I must watch the interview of Telegram founder Pavel Durov with Tucker Carlson this year (a rare 3-hour face-to-face interview). After watching it, I can deeply understand Telegram’s mission and the value of TON to Telegram, and why he wants to bullish the TON ecosystem, because TON is indeed an indispensable part of Telegram.
So I read this interview again, and indeed I had a deeper understanding of Telegram and Ton:
Pavel Durov's growth experience made him pursue freedom all his life, and he also hoped to create a platform so that others could feel freedom;
Telegram's mission is to create a platform that allows users to "express freedom";
Ton's value to Telegram: Ton is almost the only way to build profitability under its values, safeguarding Telegram's mission of "freedom of speech" and helping its sustainable development.
Below is the essence of the interview I compiled, and some background information / Comments / The analysis of TON is divided into 5 parts, Enjoy
Pavel Durov’s growth experience (elite family, centralized → capitalism, genius boy, experimental school, computer programming, Russia-Ukraine conflict, defending freedom of speech) prompted Pavel to go out and pursue freedom
The birth of Telegram, based on a lean and efficient small team (the leader of various global competitions) to develop excellent functions, brought rapid tap water growth
Pavel Durov started a life like a digital nomad, and finally chose Dubai as Telegram’s headquarters
To remain neutral, Telegram There are no external shareholders, but with an operating cost of hundreds of millions of dollars each year, a profit model based on protecting user privacy must be explored. This is what TON means to Telegram.
Some interesting points: receiving contradictory demands from the US government, the greatest pressure comes from Apple and Google, how to deal with surveillance, and secure hardware communication equipment.
Pavel Durov was born in a scholar's family in the former Soviet Union in October 1984 (a very interesting year) and witnessed the various problems of the Soviet centralized system with his own eyes;
4 When he moved to Italy with his family at the age of 10, he observed everything there in stark contrast to his experience in the Soviet Union, and believed that capitalism and the free market system were better than authoritarianism. The education he received in Italy also made him a part of Europe.
The time in Italy was full of fun for him and his brother
Nikolai Durov was a child prodigy at the age of 10, solving cubic equations live on Italian TV in real time, which was considered impossible in Italy at the time;
When Pavel first started school, he didn't know a word of Italian, and his teachers didn't think highly of him. As a result, he became the second in the class at the end of the first school year, and won the first place in the second school year. This experience made him like the competitive environment and firmly believe that as long as he worked hard, he could achieve excellent results.
Russia in the 1990s was relatively relaxed (after the collapse of the Soviet Union): Because his father was a famous scholar and writer who studied ancient Roman literature, he was invited to be the head of the Department of Classical Linguistics at the Faculty of Language and Literature of St. Petersburg State University. Russia is different from Italy, but Pavel enjoyed it because some experimental schools in Russia in the 1990s would educate you comprehensively. He learned six foreign languages and the mathematics courses were also very professional.
Pavel's family brought back an IBM PC XT computer from Italy in the early 1990s, and they became one of the few families in Russia that could teach themselves programming. Pavel was also very keen on programming. He launched an electronic library called Durov.com on the Internet for students majoring in humanities, and created an Internet forum of St. Petersburg University on SPBGU.RU, inviting teachers and students from different departments to discuss. Then, after graduating from university at the age of 21 (September 2006), he founded VK, a company that was called the "Russian version of Facebook". VK developed very quickly. In December 2008, it surpassed its competitor Odnoklassniki and became the most popular social networking service in Russia, with a value of $3 billion.
VK began to encounter a series of problems in 2011. Because of its adherence to "freedom of speech", VK became a tool for Russian protesters to organize rallies, rejected the Russian government's (Putin) demand to close opposition communities, and adhered to the freedom of speech and freedom of assembly it believed in. Similar protests took place in Ukraine in 2013, and Pavel again refused the Russian government's request to provide the personal information of protesting Ukrainian users. At this time, Pavel faced a dilemma: to succumb to the Russian government or to sell his shares. Durov chose the latter and left Russia in 2014, yearning for more freedom and unwilling to be commanded by others.
Carlson slammed Mark Zuckerberg and Prague Agarwal (former head of Twitter operations) for working with the government to censor public information.
Additional 1: In 2011, when the government demanded the removal of opposition politicians' pages after the Duma elections, Pavel Durov tweeted a photo of a husky in a hoodie with his tongue sticking out, with the text "This is my reply" to let the world know that he would not succumb to pressure.
Additional 2: In March 2022, Pavel said: "From my mother's side, I can trace my family tree back to Kiev. Her maiden name was a Ukrainian surname (Ivanilenko), and to this day we have many relatives in Ukraine." This may be one of the reasons why Pavel defends the personal information of Ukrainian users.
Pavel Durov's family are all elites
Father: Valery Durov (Valery Durov), a famous scholar and writer who studies ancient Roman literature, was the secretary of the party organization of Leningrad State University during the Soviet era. In the late 1980s, he was invited to teach Russian in Italy. After the collapse of the Soviet Union, he was invited to return to the Faculty of Language and Literature of St. Petersburg State University as the head of the Department of Classical Linguistics
Mother: Albina Durova (Albina Durov), from Kiev, Ukraine, teaches at St. Petersburg State University.
Brother: Nikolai Durov, a genius proficient in mathematics and computers
In 1996, 1997 and 1998, he won gold medals in three consecutive International Mathematical Olympiads (IMO);
From 1995 to 1998, he won three silver medals and one gold medal in four consecutive International Olympiads in Informatics (IOI);
As a member of the ACM team of St. Petersburg State University, he won the championship of the International Collegiate Programming Contest (ACM ICPC) finals for two consecutive years in 2000 and 2001. Only 10 people in the world have achieved this achievement;
In 2005 In 2000, he obtained his first doctorate from St. Petersburg State University and his second doctorate from the University of Bonn in 2007.
Pavel Durov's right-hand man, serving as CTO of VK and Telegram
Additional:
Pavel Durov's growth experience reminds me of CZ Zhao Changpeng. CZ's parents are both teachers, and his father is a professor, which can be regarded as a highly educated family. Shortly after CZ was born, his father was labeled as a "bourgeois senior intellectual" and was sent down for a period of time.
In the late 1980s, 12-year-old Zhao Changpeng immigrated to Vancouver, Canada with his parents. When Zhao Changpeng went to college, he chose McGill University in Montreal to study computer science, which started his programming career.
CZ is also a typical "world citizen". On average, he changes the city he lives in every five years. He has lived in mainland China, Canada, Japan, the Hong Kong Special Administrative Region of China, and Singapore.
CZ’s sister Jessica Zhao is also very good. She was once the managing director of Morgan Stanley.
During his last days in Russia, because of various experiences (armed police tried to break into his house), Pavel realized that every communication tool was not safe, but he needed to contact his brother, and came up with the idea of developing a messaging application with good encryption function. This is the current Telegram (iOS version launched on August 14, 2013)
Pavel was mainly responsible for the writing of the user interface. His brother designed Telegram’s encryption algorithm MTProto protocol (still in use today), which led to the trend of "message applications with encrypted functions".
The Telegram team is very lean and efficient
Based on the original TON white paper, it can be found that a small half of Telegram's engineering team are former VK employees, and they are also leaders in various global competitions (International Collegiate Programming Competition ACM ICPC, International Mathematical Olympiad IMO, International Collegiate Data Competition, Top Coder Competition)
The engineering team has only 30 people, but all of them are very capable, just like the Navy SEALs
There is no HR department, and a platform (contest.com) was created to hold engineering competitions (monthly or bimonthly) to select the best engineers and send offers
Pavel He is the sole owner, director and product manager of the company. He came up with most of the features and worked directly with every engineer and designer responsible for implementing them (Carlson was shocked)
The secret to staying lean and efficient: independence
He once told Jack Dorsey (Twitter co-founder) that 20 people were enough for Twitter. Jack agreed, but the problem was that once large-scale layoffs began, Wall Street would be uneasy, and these employees would be retained only to maintain the stock price.
So Elon needs to privatize Twitter before he can lay off 80% of the employees
So what are the benefits of going public? Pavel thought for a while and replied that it can raise funds more efficiently. So if we use tokens to raise funds, we can also achieve high efficiency and create a new evaluation system instead of the current short-term quarterly financial report system.
Telegram has 2.5 million registered users every day, and the growth rate is very fast. There is no marketing investment, and it grows completely spontaneously, with 900 million monthly active users.
Jobs also has a similar view. I don’t know if it has influenced Pavel: *We believe that if we continue to launch excellent products to customers, they will continue to take out their wallets. (*Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets)
Pavel believes that the fundamental reason is that "Telegram is a good product. Users are smart and like to use good things, not inferior products. Once users have used it for a while and discovered all the features of Telegram, including speed and security, they will not leave and will invite their friends to join. These people will realize that the communication tools they used before are 5-6 years behind the times."
The paper airplane logo comes from such an anecdote:
Pavel gave a vice president of VK a large bonus, but the vice president replied that what was important to him was the mission, not the money, so the two of them folded the money into paper airplanes and threw them down the building
Pavel visited Berlin, Singapore, London, San Francisco, and finally chose Dubai as Telegram's headquarters Reason for not choosing Berlin: There are too many bureaucratic obstacles that are difficult to overcome Germany: You cannot directly hire employees from outside the EU. You must first place a job advertisement in local newspapers and magazines. If no German and EU engineers apply within 6 months, you can hire employees from outside the EU San Francisco: I thought I would stay there because there are a lot of technology companies there. Two things made Pavel reconsider Every time Pavel went to the United States, two FBI agents would greet him at the airport and ask questions One time at 9 o'clock in the morning, he was having breakfast in a rented house in the United States, and the FBI suddenly appeared and questioned him about the details of his recent situation Even once he brought an engineer to the United States, someone tried to hire this engineer without his knowledge and let this engineer use a specific open source library in Telegram (convenient to be used as a backdoor) The first is security issues: Pavel was attacked on the way back to the hotel after visiting Jack Dorsey of Twitter. When he was tweeting "I just met Jack Dorsey" on his mobile phone, 3 big guys snatched his phone away, but Pavel struggled to get it back and ran away. This shocked him. This was the only city and country where he was attacked on the street. Second, he received too much attention from the FBI and various security agencies. “This may not be the right environment for us.” Finally chose Dubai Comment: Although Singapore is also relatively neutral, many people believe that being too close to the mainland is also a hidden danger. You can recruit employees worldwide and it is easy to apply for a residence permit. The tax policy is very good. The infrastructure is great. Only need to pay the minimum tax, you can enjoy a lot of high-quality facilities: roads, airports, hotels. 7 years ago, they came to Dubai, and at first they only wanted to live for half a year to try it out, but they never left. Dubai is very convenient for doing business. More importantly, it is a neutral country, a small country that hopes to establish friendly relations with everyone, and is not bound to any big country. This is the best choice for a neutral platform like Telegram. In the 7 years since they came here, although there have been some frictions with neighboring countries, the UAE has never asked Telegram to review user data, which is in sharp contrast to previous experiences. Fun fact After having experiences in Russia and the United States, Pavel said that he would only go to places that share their values and would not get involved in big countries like China, Russia, and the United States. This interview was also conducted in Telegram's Dubai office. After leaving Russia, Pavel obtained citizenship of Saint Kitts and Nevis by donating $250,000 to the Sugar Diversification Fund in the Caribbean region of Central America (which allows visa-free travel in more than 100 countries, including the UK), and received $300 million in cash from a Swiss bank, allowing him to focus on creating Telegram. After the outbreak of the new crown, the tourism industry in Saint Kitts and Nevis was hit, lowering the threshold for investment immigration. Forbes also published an article "Passports like Pavel Durov: Caribbean countries have lowered the price of citizenship due to the epidemic" Pavel currently has citizenship of 4 countries: Russia, Saint Kitts and Nevis, France, and the United Arab Emirates After learning the lesson of VK (which was sold to Russia by capital control), Telegram did not introduce third-party investment institutions in the early stage to maintain its independence, because its mission of pursuing "freedom of speech" may not be consistent with that of investment institutions. At the same time, Pavel can provide funds for Telegram's initial operations: 10 years ago, he had hundreds of millions of dollars in his bank account and Bitcoin (10 years ago, he used 1.5 million US dollars to buy 2,000 Bitcoins at an average price of 750 US dollars); he did not buy any real estate, airplanes or yachts, and did not think this approach was suitable for him. The first thing in life is his freedom. Once he buys something, he will be tied to a place. All his energy is on Telegram. But as the number of users increases, Telegram's annual operating costs are as high as hundreds of millions of dollars (it owes $700 million in debt in 2021). It is impossible to rely on Pavel to provide operating funds all the time, so a series of fundraising methods were tried. Pavel mentioned the issuance of bonds, but what is more important is the two attempts at blockchain (Pavel didn't talk much about this part, probably because he wanted to keep a low profile due to the influence of the previous SEC. The following parts are all my supplements): This ICO was stopped by the SEC in the first quarter of 2020. Telegram returned the funds to TON investors and paid a fine of $18.5 million to the SEC. In January 2018, Telegram announced the launch of the "Telegram Open Network" (TON), a high-performance blockchain that hopes to scale to millions of transactions per second and provide fast, secure decentralized payments, digital identity and other services to Telegram's then-500 million users. It raised $1.7 billion through an initial coin offering (ICO) to fund its construction. Participants included Silicon Valley big-name investment firms such as Sequoia Capital, Benchmark, Kleiner Perkins and Lightspeed, without selling any equity in Telegram. In March 2021, Telegram issued $1 billion in bonds with an annual interest rate of 7-8% (which looks like an emergency response to the ICO suspension) After the ICO was suspended by the SEC, Pavel handed over control of TON to the "community", and an open source developer team called NewTON took over the project and changed its name to TON (The Open Network) Foundation in 2021 TON was listed on the exchange in the fourth quarter of 2021, when the price was around $0.8. In August 2023, Telegram launched a TON-based crypto wallet during the Token2049 event in Singapore, which can be used by Telegram's 900 million users worldwide. At this point, the price of Toncoin also started to soar, and FDV and Market Cap both entered the Top10 The profit model of the Internet platform can be divided into the following categories: advertising, e-commerce physical sales, value-added services (virtual item sales, membership), financial services; Advertising creates the main profits for social networks such as Facebook/Instagram, but Pavel Durov has been famous for not liking ads since the VK era. On the one hand, it will expose user privacy data, which directly conflicts with Telegram's mission, and on the other hand, the user experience is not good; Currently, Telegram has opened advertising based on channel subscriptions, but because it cannot open user privacy data, it will affect the accuracy of advertising delivery, and it is difficult to create large-scale revenue in a short period of time; Back to the essence, Telegram is fundamentally different from Alibaba, Tencent, and Facebook. Telegram Because of its vision of "free speech", it cares about anti-censorship and decentralization. Telegram compares itself to the international version of WeChat. They also have similar product forms, so we can make a comparative reference. Tencent's 2024Q1 financial report shows that value-added service revenue is 45 billion yuan, financial service revenue is 23.9 billion yuan, and advertising revenue is 14.5 billion yuan. Value-added services and financial services combined are nearly 5 times the advertising revenue And its value-added services and financial services are related to payment. At this time, it is very clear why Telegram wants to focus on small games and support Ton: It is also mentioned in the biography of Musk that Musk also studied blockchain when planning to build a payment system for Twitter. However, as a US listed company, Twitter faces higher regulatory risks. Through the value-added services of mini-games, it can generate huge revenues on the one hand and increase user activity on the other hand; Ton essentially provides Telegram with the underlying capability of global payments. Why not build its own payment system like WeChat? Because on the one hand, a large number of Telegram users are located in developing countries and may not have their own bank accounts; on the other hand, this also saves a lot of work in traditional payment integration and supervision. In other words, for the long-tail small countries where a large number of Telegram users are located, each small country has several banks, and traditional payment integration is basically impossible. Only blockchain can quickly realize global payments. So choosing TON is inevitable from a certain perspective. Moreover, the anonymity of blockchain is also consistent with Telegram's vision. With payment, Telegram has the two most basic functions like WeChat, sending messages and sending money, and it is natural to establish various financial services. Yan Xin has an insight that is also very interesting. Based on TON, Telegram can become the first platform that can truly promote the distribution of USDT to 1 billion people, or democratize the interest of the US dollar (on the one hand, people with US dollar accounts can easily enjoy an annual rate of 5%; but on the other hand, users in many parts of the world do not have bank accounts, and their own currencies are seriously inflated) Receiving contradictory demands from the US government After the Capitol Hill riots on January 6, 2021 (thousands of Trump-supporting protesters stormed the Capitol, resulting in casualties), Pavel received a letter from Democratic congressmen asking Telegram to provide all user information related to the riot. Pavel consulted a lawyer about this request, and the lawyer advised them to ignore the request. The letter was very serious, saying that if Telegram did not cooperate, it would violate the U.S. Constitution Two weeks later, Pavel received a new letter from a Republican congressman, saying that if Telegram provided any of the data requested in the previous letter, it would violate the U.S. Constitution "Whatever we do, it will violate the U.S. Constitution" Carlson added: Facebook has publicly stated that it favors certain movements and certain countries The biggest pressure does not come from the government, but from Apple and Google These two platforms can censor all the content you can read and access on your smartphone You must abide by the rules of these two platforms, otherwise there is a risk of being removed These rules are often vague and the platforms have the right to interpret How to deal with surveillance Pavel habitually believes that the devices he uses have been hacked. After his experience in the United States, he has very limited confidence in the security of American-developed platforms (iOS, Andriod, Mac OS, Windows) How will the free exchange of information between individuals develop? Are we heading towards a world without private communication? Will privacy still exist? Especially in the era of AI, where technology is becoming more and more advanced. Pavel is optimistic and believes that there will be some new secure hardware communication devices in the future, just like hardware wallets are used to store cryptocurrencies today. The world develops in cycles, and people will always get tired of their current lifestyle and move in a different direction. 10 years ago Pavel had a private meeting with Mark Zuckerberg Pavel introduced VK's upcoming application platform. In the end, what Facebook copied was not what VK actually did, and he told Maza during the exchange. Both parties said they would not expand into each other's market, but two or three weeks later, they both did the opposite: Facebook entered Russia, and VK also launched the global market. Finally, Pavel said that Twitter is now doing well in "free speech" and has the ability to innovate. He regards Musk as a comrade-in-arms.4. In order to remain neutral, Telegram has no external shareholders, but with hundreds of millions of dollars in operating costs each year, it must explore a profit model based on protecting user privacy. This is TON The significance for Telegram
5. Some interesting points: receiving contradictory demands from the US government, the biggest pressure comes from Apple and Google, how to treat surveillance, and secure hardware communication equipment
If TON can effectively manage the current crisis and turn it into momentum to boost the project, this incident could become a turning point for TON towards wider adoption.
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