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Key Takeaways:
Enhanced User Experience: Telegram Stars are designed to improve user interactions within the app. Users can easily purchase these stars through Apple and Google platforms and use them to buy digital goods and services within Telegram’s ecosystem. This includes transactions with Telegram bots and mini-programs, making the app more engaging and fun.
Developer Benefits: Developers on Telegram can convert their earnings from Stars into TON (Toncoin), the cryptocurrency associated with the Telegram Open Network (TON). This integration allows for a seamless ecosystem where developers benefit from a straightforward conversion process, potentially increasing their incentive to create more features and services within Telegram.
Regulatory Considerations: While introducing Telegram Stars is an exciting development, it also faces potential regulatory challenges. Apple has already issued warnings regarding compliance with its App Store guidelines, which could affect how Telegram implements and manages this new currency system. Ensuring compliance with these regulations will be crucial for Telegram Stars’s successful rollout and adoption.
The popular messaging app Telegram has introduced a new in-app currency called ‘Stars’ to enhance user experience and streamline digital transactions.
This feature aims to facilitate seamless purchases within the platform, marking a significant step in Telegram’s evolution from a simple messaging app to a versatile digital ecosystem. In a Telegram post on June 6 2024, the firm’s CEO, Pavel Durov, said, “With Telegram Stars, mini apps can now accept payments for digital services using the simplest payment method possible in-app purchases on Android and iOS.”
Developers can exchange their Stars for Toncoin (TON), the native cryptocurrency of Telegram’s “The Open Network,” through Fragment, a platform primarily used for trading Telegram usernames. Durov added, “They can also use Stars to further promote their apps on Telegram.” Durov suggested that Telegram will subsidise advertisements purchased with Stars on Apple and Google, which take a 30% commission on digital product sales.
The Genesis of Telegram ‘Stars’
Telegram has always been at the forefront of integrating cutting-edge features to keep its vast user base engaged. The introduction of ‘Stars’ is a strategic move to bolster its position in the competitive messaging app market. With over 700 million active users worldwide, Telegram’s foray into in-app currency is poised to revolutionise how users interact and transact within the app. The concept of ‘Stars’ aligns with Telegram’s mission to provide a comprehensive digital experience.
This new currency lets users purchase digital goods and services directly within the app. From premium stickers and themes to advanced functionalities and content subscriptions, ‘Stars’ are set to offer a wide range of possibilities. Durov thinks this move will provide financial motivation for developers to create digital products on Telegram.
He said, “If developers reinvest Stars in promoting their app, the overall commission will be nearly 0%. As a result, launching apps on Telegram makes more economic sense than launching traditional mobile apps.” Telegram noted, “Future updates will bring extra features and functionality to Stars – like gifts for content creators and more.”
How ‘Stars’ Work: A Seamless User Experience
The implementation of ‘Stars’ is designed to be user-friendly and intuitive. Users can purchase ‘Stars’ through in-app purchases using their preferred payment methods. Once acquired, ‘Stars’ can buy premium features, access exclusive content, and even tip creators for their contributions on the platform.
The app can offer a micro-transaction model that appeals to a broader audience. This is particularly significant for users who prefer to make smaller, incremental purchases rather than committing to a full subscription. Telegram has ensured that earning and spending ‘Stars’ is straightforward. Users can earn ‘Stars’ through various activities, such as participating in promotional events or engaging with sponsored content. This gamification aspect will likely increase user engagement and loyalty, further solidifying Telegram’s community-centric approach.
Impact on the Digital Ecosystem
By introducing an in-app currency, Telegram enhances user experience and creates new revenue streams for content creators and developers. This move aligns with the broader trend of digital platforms adopting virtual currencies to drive user engagement and monetise content. In April 2024, Telegram launched Tether (USDT) on the TON blockchain as part of a partnership with the stablecoin issuer to drive more crypto adoption through the messaging platform. For content creators, ‘Stars’ provides a new way to monetise their efforts. Creators can offer exclusive content or premium services in exchange for ‘Stars’, creating a direct revenue stream that bypasses traditional advertising models.
This is advantageous for independent creators who rely on fan support to sustain their work. The ability to tip creators also encourages a more supportive and interactive community, fostering deeper connections between creators and their audiences. Developers, too, stand to benefit from the introduction of ‘Stars’. By integrating this currency into their bots and services, developers can create new monetisation opportunities and enhance the functionality of their offerings. For instance, a game developer could allow users to purchase in-game items using ‘Stars’, driving engagement and revenue. The broader implications of ‘Stars’ extend beyond Telegram’s immediate user base.