COTI no longer operates under a fixed supply model. With the rollout of COTI V2, the protocol has transitioned to a dynamic inflation-based supply system, moving away from the original 2 billion token cap that existed under the Trustchain framework.
Starting in 2025, COTI will gradually expand its circulating supply. The initial inflation rate is set at 12% in year one, tapering to 5% by year five, and falling below 2% by year ten. This carefully calibrated approach is designed to provide long-term sustainability, ensure fairness across new ecosystem participants, and enable flexibility as COTI V2 scales on Ethereum.
This new supply isn’t arbitrary , it follows a structured issuance model where all newly minted COTI tokens will be distributed across three core functions:
-
Rewards & Incentives (58%): Designed to fuel staking, liquidity provision, and user engagement through the COTI Treasury and associated dApps.
-
Development (18%): Reserved for protocol upgrades, security audits, and ecosystem tooling.
-
Ecosystem Growth (24%): Supports grant programs, strategic partnerships, community incentives, and onboarding of institutional participants.
This evolving tokenomics structure helps COTI strike a balance between ecosystem health and long-term decentralization. Instead of front-loading all rewards or locking the ecosystem into an outdated cap, COTI’s new approach dynamically adapts to actual usage and adoption. It also ensures backward compatibility. The original 2 billion tokens will remain in circulation and maintain their value. New tokens will be layered on transparently and gradually governed by on-chain issuance logic and tracked via Ethereum-based smart contracts.
In short, there is no fixed max supply of COTI anymore and that’s by design. This flexibility is essential as COTI evolves from a payment-first Layer 1 into a privacy-preserving computing Layer 2 on Ethereum.
EXPLORE MORE :
1. Does COTI have potential?
2.What does Layer-2 mean in crypto?
3. Does Coti have a future?
4. What is the use case of Coti coin?
5. COTI FAQ
