Stake Toncoin to receive UAE visa, as residency rights also become tokenized.

Written by: Deep Tide TechFlow

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

But this time it seems a bit different.

On July 6th, TON officially announced its collaboration with the UAE, starting to offer 10-year UAE golden visas to TON token stakers. Currently, the application portal has been launched on the official TON website, where 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 gain earnings and rights.

In recent years, the value of staked rights has gradually become insubstantial. After market education, participants are more cautiously choosing to stake, fearing the opportunity cost of locking up assets, and are even more afraid of becoming the exit liquidity for others.

Compared to the voting rights that are void and the potential loss of APR on the native currency, exchanging tokens for the residency rights endorsed by the state, which opens a passport for living, working, and investing in the UAE, seems much more practical.

To some extent, this also means that the "right of residence" in the real world can be tokenized.

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

100,000 US dollar tokens, 10 years visa validity

Let's first take a look at the details of the golden visa described 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and lock them through the smart contract of the Toncoin network for 3 years (36 months), during which they cannot be withdrawn.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 and a 3-year lock-up period.

The earnings can be roughly divided into three parts:

Token Earnings: During the staking period, you can also earn an annualized return of approximately 3-4%, with earnings 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 grants residency rights to their immediate family members. 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 a property worth at least 540,000 USD (2 million dirhams) or an equivalent fixed deposit. Additionally, the property cannot be sold or the deposit withdrawn during the application process and after obtaining the visa, with very strict restrictions.

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

But for investors, this means that the 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, applying for a visa through traditional routes takes at least 3-6 months; TON has reduced this process to less than 7 weeks, significantly lowering both the capital and time thresholds for the Toncoin staking program.

What are the benefits of a golden visa?

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

First of all, the Golden Visa offers a validity of 10 years, renewable, allowing holders to 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 foreign exchange flows freely, 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. Dubai and Abu Dhabi are global business and financial centers, and obtaining a local visa is 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 crypto companies and blockchain startups to establish themselves.

For crypto players and investors, the golden visa is not only a residency right but also a tool for asset allocation.

As mentioned earlier, compared to the traditional $540,000 illiquid investment, the $100,000 stake in the Toncoin plan can be unlocked after 3 years, preserving the liquidity of digital assets. This allows investors to enjoy tax benefits and a business ecosystem in the UAE while being able to flexibly adjust their investment portfolio when the market rebounds.

Perhaps the appeal of golden visas lies not only in their material returns but also in the way they open a window to global markets for the crypto community.

However, it is important to note that the current description on the TON official website states, "During the visa processing, our issuing partner in the UAE reviews the application details and provides guidance," which also implies that the visa benefits offered by TON may not come directly from cooperation with the UAE authorities, but rather through intermediary agencies for specific execution.

From void staking to residency rights tokenization

Staking in the crypto industry is often tied to voting rights or minimal returns, but it often lacks substantial value.

Many project stakers not only lack governance influence but also miss out on liquidity due to locked positions, becoming "greater fools" when VC coins are debunked and the market declines. This "meaningless" staking has led most players to question its significance:

The funds locked in often result in nothing but hollow promises.

Toncoin, in conjunction with the UAE's golden visa program, allows for a $100,000 TON stake to be converted 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 cycle seems unsatisfactory. The new gameplay that has emerged this time is obviously 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 major players in the crypto space, which emphasizes global mobility, will be interested in this play, and accordingly, the demand for Toncoin will also increase.

Without considering the $100,000 threshold and various legal systems, the latter two benefits clearly elevate the advantages of staking to another dimension compared to other crypto projects.

Of course, whether staking is worthwhile is a matter of personal opinion. However, even if TON completely goes to zero in 3 years, it would be roughly equivalent to spending 100,000 USD to obtain a 10-year residency in the UAE; whereas if other project tokens go to zero, they might end up being worth nothing at all.

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

Dubai's "Blockchain Strategy 2020" has attracted over 200 companies to set up operations, and in 2024, Abu Dhabi will launch a crypto regulatory sandbox, further solidifying 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 place in global digital asset governance.

In a certain area, investors are granted residency rights through the staking of tokens. A few years ago, this might have seemed like science fiction, but now it has 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 increasing acceptance of cryptocurrencies in more regions around 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 discussion on the feasibility of cryptocurrency going mainstream but also a new opportunity to reshape the flow of global capital and talent.