This evening we had a live stream with the CEO of COTI explaining the sudden changes and it answered so many questions. Many in the community are a little stunned with the COTI Treasury coming to an abrupt end for now. For those that missed this the COTI Treasury will be taken down on the 18th August and all staked coins sent back via the COTI Bridge to the MetaMask wallets on the 18th. The talk was direct and very clear and explained things thoroughly. The move was not impulsive and was on the agenda for some time. This was sudden for the community and the team understands this point of view.
The reality is many were not growing their bags and were milking the Treasury sending the tokens to the exchanges. COTI Earn is also going on pause once this season ends as this is not ideal as it dilutes the value of the token. The team has noticed a change and the crypto cycle has changed on how many were thinking and why growth of the eco system is going on growth looking at improving the tokenomics.
The idea of growing your bags was never part of their thought process and this was highlighted when we had the community votes when the vote asked for the maximum APR and I was at the time questioning that madness. I believe in the team and the project and thought this was a mistake at the time not knowing that many of the big stakeholders were dumping their rewards.
This was part of the conversation with regards to tokenomics and I will get to that part shortly. What is important is that Privacy On demand (POD) is relevant right now and that is where the teams focus has to be because making this a success benefits everyone who holds COTI. They are working with various institutions and enterprises which is very good news knowing they understand the importance of where COTI is situated leading privacy with digital assets. This is important to understand how crucial this time is and why the focus has to be 100% on adoption and not being split doing different projects.
The COTI Treasury was "clunky" and needs a total rebuild from scratch using their top engineers who are needed elsewhere helping their L1 and L2 clients adapt COTI privacy into their various protocols. The Treasury is paused for now and will come back in the future. The GCOTI future is uncertain for now and the team suggested swapping out for COTI so that kind of answers that question.
The staking on KuCoin is for now even though it has limited accessibility for the US and the EU. From COTI's understanding the EU is in the process of being fixed and guess that must be with the EU crypto license. Personally I would not hold my breath on that point and kind of sucks for so many who cannot earn rewards. I will be using my UK passport to get my KuCoin staking active later this week.
I have been with or invested with COTI for nearly 5 years and this has to be the right move by the team and I am comfortable with this. Doing what is right by the community because the value of the token is what counts to every investor. Short term and long term this is the right move and fixing the tokenomics is really good news. The 58% of circulating supply that was meant to be distributed through incentives and rewards will be parked for now and stay paused until the markets and time is right.
