$CONET and ETH Token Model
CoNET Network is a fully open-source, community-driven project, dedicated to decentralization, privacy, and security. Inspired by the principles of Bitcoin, CoNET is building a decentralized infrastructure to empower users and offer a new level of privacy and control.
Going forward, CoNET will utilize $CONET as the primary token for network usage, rewards, and participation in decentralized applications (dApps), while ETH will be used for gas fees and transaction validation within the Arbitrum Orbit ecosystem. The total supply of $CONET is fixed at 1 billion tokens, ensuring a sustainable and balanced economic structure.
Utilities & Economy
$CONET is the native token for the CoNET ecosystem, serving as the key utility for interacting with decentralized applications (dApps), such as our decentralized VPN Silent Pass, and as a reward mechanism for network participants. Validators within the network will earn ETH as transaction fees, given that the Arbitrum Orbit network utilizes ETH for gas costs.
$CONET can be:
Tradable on exchanges: Users will be able to trade $CONET on both decentralized and centralized exchanges.
Used for network services: $CONET will be required to access dApps and services on the CoNET platform, like our decentralized VPN.
Earned as rewards: Miners, validators, and other network participants will receive $CONET as rewards for contributing to the decentralized infrastructure.
Validators will earn ETH:
ETH for transaction fees: As validators on the CoNET network, participants will earn ETH from transaction fees, as Arbitrum Orbit leverages ETH for all gas fees. This creates a dual-earning model where validators gain rewards in both $CONET and ETH.
$CONET is used for:
dApp Transactions: Users will pay for services, such as CoNET’s Silent Pass VPN, using $CONET. This ensures that $CONET remains a core utility within the decentralized ecosystem, offering a private and decentralized internet experience.
Mining & Validator Rewards: Network participants contributing resources like bandwidth, CPU, and storage will be rewarded in $CONET. Validators will also earn ETH from transaction fees in the Arbitrum network.
Staking: Participants can stake their $CONET tokens to earn rewards and increase their mining efficiency, ensuring active involvement in network security and governance.
Incentive Mechanism: $CONET will be distributed as rewards to ecosystem participants who actively use and contribute to the network, driving engagement and long-term growth.
Token Utility Summary
Utility | Economic Impact |
dApp Transactions | Token Injection |
Mining & Validator Rewards | Injection & Sink |
Staking | Injection & Sink |
Incentive Mechanism | Token Sink |
Economy Flow
Phase 1: Onboarding & CNTP Points
Phase 1 focuses on community onboarding through CNTP Points as a reward mechanism for early participants. In this phase, users are introduced to the CoNET ecosystem through referral programs and mining pools.
Users can earn CNTP Points by participating in the ecosystem, such as purchasing Guardian Nodes.
CNTP Points will later be converted into $CONET tokens upon mainnet launch.
Phase 2: Transition to $CONET and ETH
In Phase 2, CNTP Points will be converted into $CONET tokens as the mainnet goes live. The CoNET economy will operate using $CONET for accessing decentralized services and rewards for network contributions, while ETH will be used as the gas token for transaction fees.
Users will:
Purchase $CONET on decentralized (DEX) or centralized exchanges (CEX).
Use $CONET to pay for dApp services, such as Silent Pass VPN and other decentralized services offered on the CoNET Network.
Node operators will receive $CONET for contributing computing resource to the network. Validators will receive both $CONET for contributing to the network and ETH as transaction fees with the Arbitrum Orbit ecosystem.
Next Steps:
Mainnet Launch: The launch of the mainnet will establish CoNET’s decentralized infrastructure, allowing for full use of $CONET across network services and applications.
Validators Earning ETH: Validators will play a crucial role in ensuring network security and decentralization, earning ETH from transaction fees as part of the Arbitrum Orbit network.
Decentralized Network Services: Users will be able to access decentralized applications and services through $CONET, while earning ETH and $CONET as rewards for contributing to the network.
Privacy-First Ecosystem: CoNET continues to prioritize privacy, offering decentralized solutions like Silent Pass VPN that keep users in control of their data.
Token Distribution TBA
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