> For the complete documentation index, see [llms.txt](https://doceng.conet.network/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://doceng.conet.network/tokenomics/utilities-and-economic.md).

# Utilities and Economic

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. 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.

#### $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 CoNET 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:

1. 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.
2. 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  network.
3. Staking: Participants can stake their $CONET tokens to earn rewards and increase their mining efficiency, ensuring active involvement in network security and governance.
4. 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 Plan.
* 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**\
  Full and Partial Nodes will earn **$CONET** rewards for contributing computing resources—such as bandwidth, storage, and processing power—to the network. \
  These nodes help support CoNET’s infrastructure and maintain network stability.

* **Validators**\
  Validators receive **ETH** as transaction fees . \
  By verifying transactions, Validators play a crucial role in securing the network and ensuring its integrity.

***

#### 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.
* 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 Generation Event TBA