TL;DR
→ COTI introduces a comprehensive tokenomics update designed to strengthen long-term value for the ecosystem and holders. → COTI will remain the single unified asset of the ecosystem, while updating how value is created, captured, and returned to holders. → Maximum supply stays fixed. No new tokens are minted. → Multi-chain expansion under the same fixed supply. → Revenue-driven burn mechanisms tied directly to real usage. → A new permissionless node economy with transparent rewards. → Commitment to burn at least 100M COTI tokens within 12 months.
Introduction
Today, we’re excited to unveil an upgrade to our COTI tokenomics, intended to strengthen the value of the token, reduce supply and introduce a new model in preparation for our upcoming ecosystem growth. The real-world value and the critical importance of privacy has never been stronger. Privacy is non-negotiable for the world’s finance, enterprises, and commerce to move on-chain. The trend toward privacy has gone mainstream. To meet the fast-growing demand for privacy, we’re upgrading our ecosystem and the COTI token — to power our All-in-One Privacy Layer. In the coming months, we’ll debut our plans to scale into new chains, services, and partnerships, and today we’re revealing the tokenomics’ improvements designed to scale with it.
We’re upgrading how value is generated, distributed and returned to the token and its holders. Now, real network usage is directly tied to deflation. New protocol revenues from privacy computations and cross-chain services will be burned, permanently reducing supply as adoption grows.
Here’s everything you need to know 👇
One Token. Multiple Chains. Same Supply.
COTI is evolving from a single-chain privacy solution into the World’s leading All-in-One privacy protocol and infrastructure provider. You can think of COTI as a swiss-army knife for privacy, providing every enterprise, builder and user the ideal privacy solution to meet their needs.
What this Means: In coming weeks, COTI will introduce an additional privacy blockchain on testnet, designed and supported by a leading institutional partner, so enterprises and builders can have the option to build using Garbled Circuits alongside other leading privacy technology.
Multi-Chain Privacy: in 2026 COTI will bring its innovative Garbled Circuits to leading L1 and L2 chains via Privacy on Demand. This will open the floodgates to thousands of apps and dapps on other chains to gain access to COTI’s GC for private computation and transactions.
Single Unified Token: The COTI token is also expanding, and will power our entire privacy network, compute and transactions, across multiple chains and a wide-range of use cases. COTI will maintain the same maximum supply cap across ecosystems, with the mission of creating the world’s largest privacy network.
All-in-One Privacy Ecosystem: Revenue & Fees
The future of privacy scalability is fully-composable and programmable privacy across blockchains, protocols, and the fast-changing tech and AI landscape.
COTI’s All-in-One privacy infrastructure will roll out across multiple chains and ecosystems, powered by a new usage-based pricing model. Transactions fees for private computation and transaction processing will create real, sustainable revenue, all paid in COTI.
How COTI Privacy Fees Work
Transaction Fees Every private transaction in our privacy network requires a gas, which is higher than the non-private transaction’s gas. More complex operations, like confidential smart contracts, incur higher gas costs, all paid in COTI token and accrued in the community-controlled wallet.
Privacy bridge and Cross-Chain Privacy-on-Demand Fees
Using the Privacy Bridge and initiating private cross-chain transfers each will carry their own fee in COTI tokens, adding a new revenue layer to the chain.
Comprehensive Burn Mechanisms
COTI is introducing multiple, layered burn mechanisms that permanently reduce circulating supply as the network grows. The greater the adoption and utilization of COTI and our privacy tech, the reduced supply of total tokens.
Fee-Based Burns
100% of all COTI V2 gas fees, including from private transactions, are collected in a community controlled wallet
50% of all privacy bridge transactions and privacy-on-demand fees burned, while the rest will be used by the foundation to grow the privacy ecosystem and reward adoption from other chains.
Governance Burns
The community treasury can vote to burn accumulated gas fees, as described in the whitepaper.
Annual burn proposals by the COTI Foundation like the one below
100M Commitment: We are committed to a minimum burn of 100M COTI tokens within the first 12 months (approx. 3% from the total supply), including tokens derived from gas fees accumulated in the community-controlled wallet. All burns will be transparent, verifiable, and tracked through public burn addresses.
Adaptive Staking Rewards
Upon the launch of Treasury v2, COTI will introduce a self-balancing staking model. The model adjusts APY based on participation, to attract participants, while automatically managing reward distribution and dilution.
How it works: At the target participation rate of 15% of circulating supply staked, the APY sits at a fixed ratio, say 10%. If participation drops, APY rises to attract more stakers. If participation surges, APY cools naturally.
This creates a stable equilibrium without manual intervention, and total staking rewards are capped at 50% of the community allocation per rewards epoch, providing a hard budget ceiling on reward distribution.
What This Means for COTI Holders
The COTI Tokenomics update feeds into a single flywheel:
More chains = more utility, more fee revenue and no new supply.
More usage = more fees, more burns, less circulating supply.
More participation = stronger node economy, more staking, more supply locked.
More burns = permanent, compounding supply reduction.
With our new tokenomics upgrade, we’re ensuring that as the COTI privacy ecosystem scales and grows across chains, enterprises, and applications, supply shrinks. The model rewards holders, participants, and builders, without changing the core structure of the token.
Tokenomics Transparency
Every burn, every fee allocation, and every reward distribution will be verifiable on-chain. This includes annual burn reports, and public burn addresses that are provably unspendable. We’re building a system where trust is backed by data, not promises.
Looking Forward
COTI is evolving into an All-in-One privacy infrastructure across multiple chains and ecosystems. Creating a thriving global network that can meet the privacy demands for every enterprise, builder, use case, and user.
The COTI team is committed to building a model that rewards our loyal community members, while fostering a vibrant ecosystem of innovation. This tokenomics update ensures that as the network scales, value flows directly back to the ecosystem and its holders. More utility. Real revenues. Stronger incentives. Reduced supply. A clear deflationary path. Built on real value.
Stay COTI.
For COTI updates and to join the conversation, be sure to check out our channels:
Website: https://coti.io/
COTI Earn: https://earn.coti.io/earn
X: https://twitter.com/COTInetwork
YouTube: https://www.youtube.com/channel/UCl-2YzhaPnouvBtotKuM4DA
Telegram: https://t.me/COTInetwork
Discord: https://discord.gg/9tq6CP6XrT
GitHub: https://github.com/coti-io