# COTI Tokenomics

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Get all the information about COTI V2 in detail here: \
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[https://medium.com/cotinetwork/how-coti-is-gearing-up-for-2024-and-beyond-e0d465794767#400d](https://medium.com/cotinetwork/how-coti-is-gearing-up-for-2024-and-beyond-e0d465794767#400d)
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In order to fully realize the potential of the network, a native token is essential. This token serves as the lifeblood of the ecosystem, facilitating transactions, securing the network, incentivizing nodes, and providing the means to access and utilize the advanced privacy features of COTI.

COTI recognizes a great value proposition both for COTI holders and to the COTI V2 future community in retaining the token’s central position in the new economy, enabling it to grow in importance and relevance as the network’s capabilities expand and **the old token can be transferred 1:1 to COTI V2.**

In the new network, transaction fees paid in $COTI will be aggregated into a dedicated Treasury. This Treasury, overseen by the community and governed by _gCOTI holders_, will exercise governance over the allocation of these fees. The community’s decisions will determine whether to allocate these fees as additional rewards to participants within the network or to enact a deflationary measure by burning them.

COTI V2 will be supported by the newly created COTI Foundation and its Ecosystem Fund.

The new tokenomics of the supply in addition to the initial 2,000,000,000 COTI tokens (the total supply will be both inflationary and deflationary):

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |     |
| --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- |
| Rewards, incentives and airdrops: The biggest share of the newly created tokens will be dedicated to reward holders, stakers and potentially validators as well as other network participants, encouraging active participation and securing the network. The initial recipients of this allocation will be the existing holders which will hold 100% of the supply when the network will be launched. even after 10 years when total supply can grow by 50%, **the existing holders will still retain 85% of the supply!** | 58% |
| Development: Another portion will be earmarked for development efforts, ensuring the continuous improvement, innovation, and scalability of the COTI V2 ecosystem.                                                                                                                                                                                                                                                                                                                                                          | 18% |
| Ecosystem: Designated to the COTI Foundation allowing it to support various initiatives, including grants for developers and dApps, incentive programs, strategic investments and liquidity provisions.                                                                                                                                                                                                                                                                                                                     | 24% |

<figure><img src="https://1669873050-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2Fbb9VxoqAgZO2p5RjTuh9%2Fuploads%2FrPA7aGdTCSphubIewiUR%2Fimage.png?alt=media&#x26;token=fe0529ba-2b88-41b9-b3ef-da5b5347bbe2" alt=""><figcaption></figcaption></figure>
