COTI’s V2 Node Ecosystem is Coming and Everyone is Rewarded

TLDR:

• New Node Ecosystem — COTI’s upgraded Node Ecosystem allows anyone to participate in securing the network and obtaining rewards.
• Multiple Ways to Participate — Operate a Full Node, assign a License, or manage your own Treasury Pool. Find the role that suits you best.
• Multiple Treasury Pools — Full Node operators can set parameters for their pools with their own terms, allowing participants to engage under different terms.
• Multi-Token Staking — Initially supporting $COTI, with plans to expand to other projects launched on COTI V2, increasing reward opportunities and attracting more developers.

COTI’s new Node Ecosystem is giving everyone the opportunity to participate in securing the network and obtaining rewards. Whether you want to run your own Node, join someone else’s Node, or manage your own Treasury Pool, there’s a way for you to get involved and be rewarded accordingly.

COTI’s Node Ecosystem at a Glance

Like other decentralized blockchain networks, the COTI L2 will be maintained by Nodes: computers that run the software that establishes consensus, processes transactions, and ensures security.

$COTI holders will be able to stake their tokens with Node operators, helping contribute to the security and stability of the network. Node operators can run their own Treasuries: staking pools with customized terms, based on the COTI Treasury app.

A Node License is required to receive rewards for helping to maintain the network. Licenses come in two forms: Full Licenses and Lite Licenses, which serve different purposes and offer opportunities for anyone to participate.

Key Roles And Activities

• Nodes run the software that secures the COTI network and processes transactions.
• Full and Lite Licenses provide the right for Nodes to obtain network rewards.
• Full License holders can utilize their license to run a Node, or assign it to another Node operator, in return for rewards generated (minus a fee).
• Lite License holders can assign their license to a Node and offer the opportunity to participate at an affordable entry point.
• COTI holders can stake their tokens with a Treasury in return for rewards.
• Full Nodes operators can run staking pools (Treasuries), with customized rules that determine the terms for staking, locking periods, and fees.

For full details, read the COTI Node Ecosystem Litepaper

COTI’s new Node Ecosystem is designed to be flexible, allowing participants to choose the role that suits them best — whether it’s running a Full Node, assigning a License, or operating a Treasury Pool.

There are no significant technical barriers, but those who prefer a hands-off approach can assign their License to an operator and still obtain rewards. For those running Nodes, the ecosystem offers greater control, enabling operators to manage their own Treasury Pools, set custom rules, and optimize their opportunities. Additionally, Nodes will support multi-token staking, starting with $COTI and expanding to other tokens in the future, further increasing rewards opportunities.

COTI Node Licenses

The new COTI Node Ecosystem will be powered by Licenses. Node Licenses will be issued as NFTs (non-fungible tokens), ensuring uniqueness, ownership security, and the ability to transfer or sell them on the secondary market.

Both Full and Lite License types are limited in supply and may increase in demand as network participation grows.

A License grants holders the right to earn from participating in securing the COTI network and processing transactions via the various activities of Nodes. A Lite License costs one-tenth as much as a Full License, making it an affordable option for everyone to participate.

How You Can Participate in the COTI Ecosystem

Participants can obtain rewards in different ways, depending on their role in the ecosystem:

• Staking in a Treasury — Stake your tokens in a Treasury Pool to obtain rewards. Node operators can create custom rules for their pools, meaning there will be many different Treasuries to choose from across the COTI network, offering different terms and advantages.
• Running a Full Node (Full License Holders) — Earn 12.5% of total protocol emissions for securing the network and processing transactions.
• Assigning a License (Full and Lite License Holders) — Obtain a part of the rewards by holding a License and assigning it to an active Full Node operator.
• Managing a Treasury Pool (Only for Full Node Operators) — Treasury operators can set their own fees, locking periods, and rewards, optimizing them to attract both assigned Licenses and stakers, for staking reward fees. Treasuries can be set up to reward both native COTI staking and staking of any other network token.

Assign Your License to a Node (Full and Lite License Holders)

Each License (Full or Lite) can be assigned to a Full Node operator, allowing holders to obtain rewards without running a Node themselves.

This option is ideal for users who want to participate in the COTI ecosystem and obtain rewards without operating a Node. By assigning their License to an operator, users can be remunerated based on the operator’s performance and chosen terms, allowing them to participate in the COTI Node Ecosystem without running a Node themselves.

Run a Full Node (Full License Holders)

A Full License allows holders to operate a Full Node, which plays a critical role in validating transactions and securing the network. Running a Full Node while holding a proper license provides direct access to Node Rewards, which are distributed to operators based on performance and uptime, and contributes to the overall stability of the ecosystem. Full Nodes maintaining at least 98% uptime are eligible for 12.5% of total protocol emissions every reward period, shared between the operator and all of the Licenses assigned to it.

This option is ideal for users with some technical knowledge who want to actively participate in network security and earn directly from Node rewards.

Manage a Treasury Pool (Only for Full Node Operators)

With the new COTI Node Ecosystem, Full Node operators can now create and manage their own Treasury Pools. A Full License not only allows holders to operate a Full Node but also grants access to managing a Treasury Pool. Treasury Pool operators obtain staking reward fees, which they can customize based on lock-up periods, multipliers, and other incentives.

Previously managed by COTI, this feature is now available to all Full Node operators, enhancing decentralization by allowing more participants to manage staking pools and shape the network’s economic model.

This option is ideal for Node operators who want to expand their reward potential while contributing to a more decentralized ecosystem. By running a Treasury Pool, operators can attract stakers by setting competitive fees and optimizing their rewards based on pool activity.

COTI Node Ecosystem Rollout Plan

The COTI Node Ecosystem will launch in phases:

Phase 1 (Mainnet Launch) — Initial Node operators, based on the current cohort of Full Node operators, will manage V2 Nodes from day one, actively validating transactions.
Phase 2 (2 Months Later) — Additional Full Nodes will be onboarded, expanding network participation.

Phase 3 (2 Months Later) — Development of multiple Treasury Pools will be completed, allowing Full Node operators to set up and manage their own pools.

Phase 4 (To be announced) — Treasury Pools will expand to support staking for additional tokens, allowing third-party projects to leverage the COTI network for decentralized staking and liquidity incentives.

*For more details, read the COTI Node Ecosystem Litepaper

Summary

COTI’s V2 Node Ecosystem introduces a decentralized and rewarding way for participants to contribute to network security while obtaining rewards. Whether by running a Full Node, assigning a License, staking in a Treasury Pool, or managing a Treasury Pool, there are multiple ways to get involved. With a structured reward system, COTI’s new Node Ecosystem is designed to be accessible, flexible, and scalable, empowering users to participate at their preferred level. Get ready to be part of the next chapter for COTI!

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