Treasury Deposits Now Receive gCOTI as Additional Rewards!
We are happy to share that starting today, $COTI Treasury deposits will be rewarded with gCOTI as extra rewards, in addition to the standard $COTI rewards! gCOTI, COTI’s Treasury governance token is also used to boost existing deposits base APY by up to 1600%. This marks another milestone accomplished for the COTI Treasury.
How is the Amount of gCOTI Rewards Determined?
The amount of gCOTI rewarded is determined according to your current deposit in $COTI. This figure is in turn influenced by the locking period, multiplier and APY boost. The exact breakdown can be seen in the tooltip, under your active deposits section in the Treasury page, as pictured below:
How are the gCOTI Rewards Distributed?
Unlike $COTI rewards that are actively required to be claimed, accumulated gCOTI rewards are distributed directly to users’ wallets on a weekly basis. As pictured below, the amount shown on the dashboard represents the gCOTI rewards that will be distributed in the following week. Every week, after each distribution, a new amount will appear, representing the rewards distribution of the following week. By clicking the tooltip, you’ll be able to see how many gCOTI rewards have already been awarded to you in all the previous weekly distributions. The first distribution will start next week on Wednesday, Feb 28th.
Once the rewards have been distributed, you will be able to see them under the Overview section.
*Please keep in mind that these screenshots were taken from a dev environment and the numbers shown do not represent real-world values.
The amount of gCOTI released over time will be done in accordance with the gCOTI vesting schedule described in the litepaper.
The amount of actual rewards distributed will likely be lower than the max amount that is shown on the vesting schedule, as it relies upon various factors, such as Treasury deposits, fees collected and governance decisions.
Hypothetical Scenarios
To truly understand how this new rewards system will operate, let’s review some hypothetical scenarios and discuss their outcomes.
Scenario #1
Bob has a Treasury deposit of 1,000 $COTI without any lock or multiplier, while the current base APY applied to his deposit is 5%. Bob did not boost his APY by depositing gCOTI. The weekly rewards pool consists of 100 $COTI and 200 gCOTI. Assuming gCOTI/$COTI price ratio is 0.5, under this scenario, Bob would be able to claim 0.48 weekly $COTI rewards, in addition to 0.96 weekly gCOTI rewards that will be sent directly to his wallet.
Scenario #2
Jenny recently deposited 1,000 COTI and boosted her APY by depositing 100 gCOTI into the Treasury with a 90 day locking period and a 2X multiplier. While the base APY is 5%, her relevant APY stood at 15%. Since the additional boost to the APY is 8% (1600% boost on 10% of the deposit), the boosted APY is 23%. The weekly rewards pool consists of 100 $COTI and 200 gCOTI. Assuming gCOTI/$COTI price ratio is 0.5, under this scenario, Jenny would be able to claim 2.21 weekly $COTI rewards, in addition to 4.42 weekly gCOTI rewards that will be sent directly to her wallet.
We are working on more Treasury developments including the long-awaited $COTI ERC20 deposits, so stay tuned for more updates.
Stay COTI!
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