Introducing Staking 2.0 on COTI
Dear COTI community,
We first introduced our staking plans in January 2020 and have since received overwhelming support and demand to participate. The recent and continual growth of our network and processing volume has allowed for better than expected rewards for our current node operators and stakers, while also presenting an opportunity to grow our staking program even further.
We are now pleased to introduce staking 2.0, with increased staking volume, to be launched in May 2020.
Our MainNet nodes will now allow staking of 5M COTI (instead of 100K to 500K), across our two current staking nodes -
- Community nodes
- Advanced nodes
Note, staking on nodes will only be available with native MainNet coins.
To facilitate these changes to our staking model, we have also updated our network node selection algorithm. When a transaction needs to be confirmed, this algorithm is used for node selection, picking the node that will process and confirm a transaction This algorithm was originally designed to use parameters such as Trustscore, fees and more however the algorithm will now also take into consideration the amount staked on a node, so that a node with more coins staked, will have a better chance in being picked to confirm the transaction (increasing the node fees, accordingly).
There will be no changes to our TestNet nodes on the staking 2.0 plan, (though their operators will now get their well deserved opportunity to stake in MainNet nodes).
Staking on exchanges is also coming via an additional new program which allows for more flexible staking through various exchanges. Details will be published in an upcoming announcement.
Here are the detailed plans and changes in staking 2.0:
Community nodes are MainNet Full nodes that have a delegated staking mechanism to include more community members in their operation. Running a node in a payment system is an important task as it involves the confirmation of transactions to real world merchants.
We understand that managing a node requires technical skills that not all participants have, therefore community nodes will be technically managed by a node operator with sufficient technical skills from the community.
Community nodes will now run with a 5,000,000 COTI staked (compared to 500,000 before). In order to serve various needs to different members, we have created three groups with different staking amounts and guaranteed rewards (the reward is the highest of either fees generated by the node or the guaranteed annual reward).
The node operator will enjoy the ability to stake 750K COTI with a guaranteed reward of 35% per annum. The remainder 4,250,000 of COTI to be staked on the community node will split between community members that may stake 15,000-500,000 COTI for 30-90 days, with higher rewards to longer staking periods.
In the example below, we demonstrated several situations for Community Node stakers in the COTI ecosystem:
Jane, Mary and Bob are Winston Wolfe’s community members and they’ve been chosen to participate in his community node staking. Jane has staked 500,000 COTI, as part of being a member in group I, out of total staking of 5,000,000 COTI (10% of the total staking). Mary has staked 150,000 COTI as part of being a member in group II (3% of the total staking). Bob has staked 15,000 COTI as part of being a member in group III (0.3% of the total staking).
On April 1st, 2020 Winston Wolfe has set a fee of 0.1% and the transaction volume he processed in April was worth 80,000,000 COTI. The total fees are being divided between the community node operator, and the community members, according to their staking amounts. Therefore, in April 2020, Jane earned 12,500 COTI, while Mary earned 3,125 COTI and Bob earned 250 COTI. Since the income received from the fees does not provide the guaranteed rewards, COTI will cover the difference. On May 1st, 2020 Winston Wolfe has set a fee of 0.25% and the transaction volume he processed in May was worth 50,000,000 COTI. Therefore, in May 2020, Jane earned 12,500 COTI, Mary earned 3,750 COTI and Bob earned 375 COTI. Since the income received from the fees was equal or higher than the guaranteed rewards, Jane, Mary and Bob will earn the amount collected from the fees.
Advanced nodes are Mainet full Nodes too. The advanced nodes will require staking 500,000- 5,000,000 COTI for a minimum period of 90 days in exchange for the higher between fees generated by the node and the guaranteed annual reward of 25%.
The node will be operated by COTI, securing a 100% uptime, while the staked amount can be splitted between up to 4 stakers, on an invitation base.
In the example below, we demonstrated several situations for Advanced Node operators or stakers in the COTI ecosystem:
Samantha, John and Phil are running an advanced node on COTI’s MainNet; They have staked 5,000,000 COTI from April 1st, 2020.
They have set a fee of 0.1% and the transaction volume they’re node processed in April was worth 80,000,000 COTI.
Rob, Adam and Eve have staked 3,000,000 COTI altogether. They set a fee of 0.2% and the transaction volume they processed in April was worth 50,000,000 COTI.
Therefore, in April 2020, Samantha, John and Phil earned a total of 104,166.66 COTI (since the income received from the fees does not provide the guaranteed monthly reward of 104,166.66 COTI, COTI will cover the difference).
In April 2020, Rob, Adam and Eve earned a total of 100,000 COTI.
Transaction Distribution Model
Please refer to the below document to learn more about the COTI transaction distribution model and understand how transactions are propagated and spread between the Full Nodes. Our innovative model defines how the probabilistic of transactions are set within the network and introduces the metrics used and taken into account by the node manager to balance and set the fairness factors while choosing the full node that will process transactions and collect the fees.
Read more here.
Calculating earnings and examples
Potential earnings can be estimated using our earnings Calculator.
You can also view our configurable staking rewards calculator here — https://www.stakingrewards.com/asset/coti/calculate
How do we pick node operators and stakers
There has been a great demand for our previous staking plans and we couldn’t meet all of that demand. By increasing the overall staking volume, we can now serve more people. We’ll be opening an early registration and we’ll be giving preference to members that are already actively staking, members that have been put on a waitlist and haven’t been served yet and TestNet node operators.
Early-Registration in early April was a complete success with over 700 users requesting to join with over 200M COTI in demand to be staked!
Main registration is now open to the public at large.
The new node and distribution model was implemented in COTI’s MainNet at the beginning of May 2020.
Additional details about exchange staking will be published during April.
- Staking per node will grow from 100K-500K to 5M coins
- Bigger community nodes with 3 level of participations (15K to 500K)
- Bigger Advanced node (up to 5M)
- Selection algorithm will gives greater preference to nodes with larger staking volume
- Only native MainNet coins can be staked on nodes
- Exchange-based staking
- Registration in April, launching in May
We’d like to take this chance to thank you for your interest in participating in our plan to change the digital payment industry!
If you’d like to learn more about how to run a Full node on COTI’s TestNet network, please refer to the guide below:
For any comments and suggestions about our staking plans, please send an email to firstname.lastname@example.org
For all of our updates and to join the conversation, be sure to check out our channels:
Technical whitepaper: https://coti.io/files/COTI-technical-whitepaper.pdf