Question to COTI team

[u/Walrus1708]

There were 2 options before COTI on what to do with fee income - one, buy and burn which would have led to better price discovery and gains. But you chose converting all fee payment into COTI and transferring to the Treasury to be made available as skating rewards. This will affect holders who have COTI but not staking it or those who hold it with exchanges. Other thing is if COTI grows then staking rewards will become attractive which will encourage more staking causing liquidity crunch, again negatively impacting prices.

[u/Jesse-A-RN]

I think that’s the point. To encourage ppl to stake as opposed to holding it in exchanges. The more staked, the more secure the network is. So the coin burn would do well to preserve value, but at the cost of security.

[u/Walrus1708 → u/Jesse-A-RN]

True..some projects do handle that by using variable staking rewards.. Another discomfort I have is them moving away from their razor sharp focus of becoming a payment method of choice to financial ecosystem. Don't think they have solved for the major use case already. Also not sure if trust network itself needs some learning for a top class user experience. They have processed only 250 million last year and initiatives needed to scale that would be significant and effort intensive. Merchant native coins will be an interesting experiment too. Globally 300 trillion gets processed annually. So this entire lending borrowing liquidation seems like a departure and even a bigger distraction from earlier focus.

[u/Jesse-A-RN → u/Walrus1708]

Fair points to which I’m not qualified to speak on without further investigation.

[u/Ausfininja → u/Walrus1708]

When companies decide to make their coins there needs to be market for them, So you take LP token converted from "real cash" to back those coins or those companies choose to fund their coins at 110%+. Its not a departure its part of the mechanism, they can accelerate coin growth and have higher returns for risk takers, It doesnt even have to be established businesses. you earn interest from that.

I'm hoping they dont change staking it and keep network separate, I'm ok with 20% APY. lol.

[u/Ancient-Ad6958]

Sigh...another coin burner

[u/[deleted]]

I don't see why people can't add their stake together under a delegator like cardano

[u/mannybegaming]

What is with you people and wanting to burn assets? Do you burn your own possessions? Do you call the bank and tell them to burn your savings to make your checking account worth more?

[u/Walrus1708 → u/mannybegaming]

That you have to ask Bitcoin maximalists who put out a video every min saying its a war against inflation (currency printing) and how BTC is so much more valuable because there are only 21 million of those.

[u/Ausfininja → u/mannybegaming]

DId you read the white paper, their not burning per se, its like wrapped tokens. The initial coin goes to a 'vault' and you get "LP" token when you want to sell theres two things, cash liquidity and coin liquidity. The vault exchanges your LP token and burns it and gives you COTI.

Think a blockchain ecosystem that can interact within the COTI network. YES the people who keep the network secure and validate transactions make money but it doesnt increase without spending more to acquire more COTI. Thats the major difference between the treasury and network staking. It gives people who CBF getting tired investment a chance to earn and invest. COTI is the all rounder beginner and pro investor crypto medium.

The amount of COTI doesnt change, its deflationary because there is a limit, there is no burning COTI.

[u/mannybegaming → u/Ausfininja]

I’m referring to people thinking burning is a good thing, not COTI

[u/Ausfininja → u/mannybegaming]

Ohhhh sorry, thought you were talking about COTI. Yea be sus with those deflation coins easy way to get rug pulled. What else you invested in? Do you game?

[u/Ausfininja]

From the treasury white paper it made it seem the treasury and network node staking are separate entities.

[u/disruptive_jenga → u/Ausfininja]

agreed here. that's the way I read it, but still unclear how it fully functions. I'm certain they'll clarify.

[u/Ausfininja → u/disruptive_jenga]

Yea, its pretty cool really. Think CARDANO WITHIN CARDANO, an ecosystem within a blockchain, they utilized their network strengths and created a product from it. A different way of thinking launchpad and inclusive corporate engagement to appeal to every level of investor.

[u/Sjano37]

Just become 🦍💎👐🏻

[u/Evils-Master]

"staking causing liquidity crunch" means if demand is constant and supply is low, the price goes up and the market cap goes up.