I was listening to the Crypto Town Hall hosted on Twitter (X) earlier this evening mainly because I knew Shahaf Bar-Geffen the COTI head was invited as a guest speaker. COTI normally is invited once a month to share some insights and updates on their eco system. Tonight was another interesting listen and being invested in COTI like some others in our community I thought I had best share what I picked up.
The COTI Treasury as most of you already know is where most COTI holders stake their COTI and ern an APR for doing so. Without going into too much detail the basics are you choose a locking period of time where you stake remains locked and for that you earn x amount of APR. The longer the time frame the higher the APR earned on that stake. The other part is the level with 1 being no risk and level 8 earning the maximum APR on offer, but also a high risk with liquidations being the big worry.
Tonight Shahaf mentioned that COTI are introducing a new node format which will turn nodes to a small business. Currently nodes only earn tokens for processing the transactions in the eco system plus not forgetting they also get paid for their services with a 30% APR on their node stake. The minimum stake for running a node is 150K COTI for those interested.
The new format mentioned tonight changes things as node operators will be allowed to offer their own leverage, lending and risk level APR's outside of those offered by COTI. In other words there will be many more staking pools to choose from offering different types of earning capabilities and not being centralized with a few set offerings like we see currently.
I would imagine those running the nodes offering other services would have to have sufficient stake to cover their business plan just in case things went wrong. As an investor in the project I do like how nothing ever seems to stand still and change is a constant feature with COTI. There would be a possibility of a CEX like Privex running a node in the future as this would align with what they are doing anyway. This seems like a very recent development and with COTI and Privex recently partnering up this could be where this idea came from.
The good news as an investor is there will be an open market for node operators to work in and this means the chance to earn a higher APR for all investors. This is due to happen sometime this year and I am keen to see how this is going to work.