COTI V2 Token Unlock Schedule: Clarifications on Recent Questions

COTI
3 min readDec 18, 2024

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Hey everyone,

We’d like to address the recent debate on COTI’s channels regarding the token unlock schedule.

In short: the information published on CMC and Binance is not accurate and we’ll work with them to correct it. The information published in COTI’s V2 whitepaper was and still is the correct one.

The upcoming changes to COTI’s V2 token economy were outlined back in December 2023, then again in the COTI V2 Whitepaper and multiple times since across our social channels in a transparent manner. We have also taken into account the valuable feedback from our community and have incorporated several ideas.

COTI V2, as an EVM-compatible L2, requires a native token to unlock the full potential of the network, enabling transactions, securing the network, incentivizing operators, and powering advanced privacy features, as it works in any base layer. To ensure that the COTI token, which has served as the backbone of the ecosystem since the launch of the COTI mainnet in 2019, remains central to the new economy while meeting the demands of the upgraded network, a technological enhancement is necessary. Rather than introducing a new, unrelated token, COTI has chosen a migration plan that strengthens the token’s utility, allowing it to grow in relevance as the network evolves. We strongly believe that the token will derive its power from utility and usage, not just from scarcity.

With that in mind and as announced back in December 2023, starting in 2025, alongside the launch of the V2 mainnet, the existing supply will begin migrating to COTI V2. At the same time, the protocol will introduce a mechanism to mint new tokens every epoch, as most base layers do. This process features a gradually reducing inflation rate, dynamically adjusting to the network’s demand and usage. Specifically, the total supply will initially expand at a rate of 0.45% per epoch, decreasing by 0.55% per epoch over the next decade.

Recently, platforms like Binance and CoinMarketCap began displaying token release schedules for all projects. The current numbers in the published schedule on Binance and CoinMarketCap are incorrect and likely confusing, probably due to erroneous self report or format misalignment. Specifically, the periodic unlocks displayed are significantly overstated than the planned schedule presented in the whitepaper. We’ll fix it.

As always, we appreciate the (loud!) feedback which we have taken into account and remind you to refer to the COTI V2 whitepaper as the source of truth.

We also wish to reiterate that 58% of all newly minted tokens will be allocated to the community as rewards to stakers, node operators, and other network participants. As previously explained, the initial recipients of this allocation will be the existing holders which will hold 100% of the supply when the V2 network is launched, offsetting most of the inflation.

We also remind you that transaction fees collected in COTI V2 will be pooled into a community-governed Treasury. The community will decide how to use these funds, such as redistributing them as rewards to participants or burning tokens to reduce supply. These mechanisms could limit supply growth and even create a deflationary effect, showcasing the protocol’s adaptability and long-term sustainability.

Again, thank you for being vigilant and we’ll work to make sure that all publications align to COTI’s V2 whitepaper.

Now, back to building.

For all COTI updates and to join the conversation, be sure to check out the following channels:

Website: https://coti.io/

X: https://twitter.coti.io

YouTube: https://youtube.coti.io

Telegram: https://telegram.coti.io

Discord: https://discord.coti.io

GitHub: https://github.coti.io

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COTI
COTI

Written by COTI

COTI is the fastest and lightest confidentiality layer in Web3

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