article

Inside the COTI V2 Node Ecosystem - Decentralized, Rewarding, and Built for All

Nahid
Published: May 22, 2025
(Updated: May 22, 2025)
5 min read
Inside the COTI V2 Node Ecosystem - Decentralized, Rewarding, and Built for All

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With the launch of COTI V2, a new chapter is unfolding, not just for privacy in Web3, but for how communities actively contribute to the networks they believe in. COTI’s upgraded Node Ecosystem invites anyone to play a direct role in maintaining and securing the network, while earning rewards in return.

Whether you’re a seasoned operator, a casual staker, or someone looking to dip your toes into decentralized infrastructure for the first time, COTI now offers multiple entry points. From running a Full Node to simply assigning a License or staking through a Treasury Pool, there’s a pathway for every level of experience and interest. With multi-token staking, customizable treasury pools, and NFT-based licensing, COTI is setting a new standard for accessible, flexible, and rewarding Web3 infrastructure.

What Is the COTI Node Ecosystem?

At its core, the COTI Node Ecosystem is a decentralized infrastructure made up of Full Nodes, License Holders, and Treasury Pools. These components work together to keep the network secure, efficient, and economically vibrant.

  1. Nodes validate transactions, maintain ledger integrity, and enforce consensus

  2. Licenses (NFTs) enable participation and are assignable to other operators

  3. Treasury Pools let operators manage staking services with custom terms

Together, these elements form a self-sustaining economy where every role contributes and gets rewarded accordingly.

How You Can Participate

The COTI Node Ecosystem is designed to support multiple participation levels, each with its own reward structure.

1. Run a Full Node

  1. Requires a Full License NFT

  2. Validates transactions, stores state, and secures the network

  3. Eligible for 12.5% of total protocol emissions if maintaining ≥98% uptime

  4. Can run multiple nodes per license

2. Assign a License (No Node Operation Required)

  • Earn a share of Node Rewards minus a customizable operator fee (0–10%)
  • Perfect for users who want passive income without technical management
  • Full or Lite License holders can assign their NFT to an existing Full Node

3. Manage a Treasury Pool

  1. Only available to Full Node operators

  2. Create a custom staking pool using the COTI Treasury app

  3. Set parameters like fees, lockups, and reward multipliers

  4. Benefit from staking reward fees on top of Node Rewards

4. Stake in a Treasury Pool

  • Anyone can stake $COTI in available Treasury Pools

  • Rewards are capped based on how many licenses the node has

  • Pools with fewer stakers under cap = higher APY potential

Node Licensing — Full vs. Lite

To participate in the COTI Node Ecosystem, you’ll need a Node License. These licenses come in two types: Full and Lite, both issued as NFTs, making them secure, unique, and transferable. Each serves a distinct purpose and caters to different levels of involvement.

A Full License gives you the most flexibility. With it, you can run your own Full Node, assign the license to someone else’s node, or even manage your own Treasury Pool. This option is designed for participants who want to play an active role in securing the network and shaping the staking economy. Full License holders earn a share of protocol rewards either by operating their own node or by assigning the license and collecting a cut of the rewards generated.

On the other hand, a Lite License is a more affordable and accessible entry point. While it doesn’t grant permission to run a node or manage a Treasury, it still allows holders to earn passive rewards by assigning the license to a Full Node operator. It's a great fit for those who want to support the network and earn yield without needing to get technical.

Both license types are limited in supply, adding scarcity and potential long-term value. Whether you're a seasoned validator or just getting started in Web3, there’s a role for you in COTI’s decentralized infrastructure.

Economic Model and Treasury Customization

COTI’s node economy is structured to scale efficiently while distributing rewards fairly.

Node Rewards: 12.5% of protocol emissions distributed every 103 hours to nodes with ≥98% uptime

Assignment Fees: Set by node operators for passive License Holders

Staking Caps: Max staking per node is based on assigned licenses:

+500,000 COTI per Full License

+50,000 COTI per Lite License

Staking Rewards: Proportional to cap. Exceeding cap reduces APY

Customizable Fees: Treasury operators can adjust deposit, withdrawal, and reward fees.

To ensure fairness, some parameters are fixed network-wide, like the base APY matrix and gCOTI boost ratio.

Multi-Token Support & Developer Opportunities

One of the standout features of the Node Ecosystem is native multi-token support.

  • Developers can integrate any token into the COTI Treasury framework
  • This enables decentralized staking, reward distribution, and governance without building infrastructure from scratch
  • As more projects launch on COTI, demand for nodes and treasury pools is expected to increase benefiting both developers and infrastructure providers

This makes COTI not just a privacy layer, but a scalable and developer-friendly ecosystem.

Rollout Timeline

The Node Ecosystem is launching in phases:

1. Mainnet Launch: Early Full Node operators begin securing the network

2. +2 Months: Onboarding of additional Full Nodes

3. +2 More Months: Treasury Pool customization goes live

4. Future: Treasury Pools open up to other tokens beyond $COTI

Conclusion: A Network Where Everyone Can Earn and Contribute

Whether you’re a staker, a license holder, or an operator, the COTI Node Ecosystem is designed to make decentralized participation rewarding and scalable. It aligns incentives across the board security, liquidity, governance and offers unmatched flexibility in how you engage with the network.

As COTI V2 grows into the leading privacy infrastructure for Web3, its node economy ensures that the network’s foundation is as decentralized, inclusive, and sustainable as the apps it powers.

ALSO READ: COTI V2’s Secret Weapon: Garbled Circuits Explained for the Web3 Era

 

 

About the Project


About the Author

Nahid

Nahid

Based in Bangladesh but far from boxed in, Nahid has been deep in the crypto trenches for over four years. While most around him were still figuring out Web2, he was already writing about Web3, decentralized protocols, and Layer 2s. At CotiNews, Nahid translates bleeding-edge blockchain innovation into stories anyone can understand — proving every day that geography doesn’t define genius.

Disclaimer

The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official stance of CotiNews or the COTI ecosystem. All content published on CotiNews is for informational and educational purposes only and should not be construed as financial, investment, legal, or technological advice. CotiNews is an independent publication and is not affiliated with coti.io, coti.foundation or its team. While we strive for accuracy, we do not guarantee the completeness or reliability of the information presented. Readers are strongly encouraged to do their own research (DYOR) before making any decisions based on the content provided. For corrections, feedback, or content takedown requests, please reach out to us at

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