As far as I can make up from the stream, the v1 exotics will remain at 160 (their current max) and will only allow you to get the new v2 edition of the same exotic straight away, if you actually have (or ever had) the v1 item. So they won't be upgradable themselves, but will allow you to fast-forward to a shiny new version of (some of) those weapons/gear items: you don't have to grind for the items you already have, but instead you just buy them (cheap) at the console in the tower. The v2 weapons and gear will have their main perk immediately available (column 1) and the upgrade path will be similar to that of HOW gear, not the long, vanilla one. Basically you're not relevelling the same gear again, but a newer, improved version with more damage output and additional perks, which the v1 editions don't have. They also said @ 45:48 in the [url=http://www.twitch.tv/bungie/v/11727800]Twitch stream[/url]: [quote]only some of the exotics are coming forward [b]right now[/b][/quote] Maybe the others will be introduced at a later time or simply be replaced, we'll know soon enough. By the looks of it, I really like this way of rewarding people's efforts on grinding for the v1 gear.