Microcosm Labs: The Open Network - From Total Value Locked to User Value Generated

In a recent thought-provoking presentation at the Foresight Hacker House during DevConnect Istanbul, Jerry, the Managing Director of Microcosm Labs, captivated his audience with a fresh perspective on blockchain’s progression. The speech, aptly titled “From TVL to UVG,” challenged conventional industry wisdom by advocating a shift in focus from Total Value Locked (TVL) to User Value Generated (UVG). Jerry’s insights offer a roadmap for harnessing true value in the blockchain space, transcending the limitations of mere capital accumulation.

The Limitations of TVL

The foundation of Jerry’s speech centered on a vital critique of the crypto industry’s historical obsession with TVL. Citing TVL as a misleading barometer of success, he referenced the collapse of Terra — a stablecoin project once boasting $20 billion in locked value — as a stark example of how TVL can inflate bubbles while failing to deliver tangible improvements to users’ lives.

Why UVG Matters:

Jerry’s central thesis posits that sustained industry growth cannot be built on valuation bubbles but should instead derive from User Value Generated — a metric emphasizing real-world applications and user benefits. The UVG model advocates for creating practical use cases that drive user adoption and cultivate a robust network effect. By focusing on the value delivered to end-users, blockchain platforms can spin a virtuous cycle, transforming the ecosystem into a self-reinforcing flywheel of innovation and utility.

TON’s Distinct Approach to Blockchain

Jerry’s optimism for a more user-centric blockchain future shines when he discusses The Open Network (TON). Highlighting the seamless user experience, Jerry used a live demonstration, sending Toncoin via Telegram, to showcase TON’s potential for effortless user onboarding — a vital step towards achieving mass adoption.

Technical Reasons for TON’s Promise:
From a technical standpoint, Jerry provided compelling reasons for TON’s suitability as a blockchain for the masses:

  1. Actor-model messaging enhances scalability beyond what traditional blockchains like Ethereum can handle.
  2. Through Infinite Sharding Paradigm and Instant Hypercube Routing, TON achieves unprecedented transaction speeds — a claim substantiated by its recent Guinness World Record for the fastest blockchain.

:warning: Read more of Full deck of TON by TonUP.

Microcosm Labs’ Outlook on TON:

To further underline TON’s capabilities, Jerry referred to an article by Microcosm Labs, identifying key factors that set TON apart:

  1. The interplay between social connectivity and financial transactions on platforms like WeChat Pay demonstrates the massive potential of integrating these spheres — a trend TON is well-positioned to capitalize on.
  2. As an open, permissionless blockchain, TON stands as a global utility, not confined by national regulations, allowing anyone to deploy applications freely.
  3. TON has the potential to extend banking services to underbanked regions, leveraging its accessibility through Telegram, even on basic smartphones.


Jerry’s discourse, “From TVL to UVG,” marks a strategic call to action for the blockchain industry to evolve its value propositions. By embracing the principles of UVG and supporting platforms like TON that are designed for accessibility and mass adoption, the crypto space can transcend past pitfalls and realize a future where the true potential of blockchain technology impacts everyday lives across the globe.

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