Key Takeaways
- COTI (COTI) is the native token of COTI V2, a privacy-focused Layer 2 on Ethereum whose mainnet launched on March 26, 2025. COTI began as a directed acyclic graph (DAG) protocol designed to optimize the creation of decentralized payment networks and stablecoins.
- COTI aims to empower organizations by enabling them to build payment solutions and digitize any currency. It aims to address issues like latency, fees, and global inclusion within the traditional financial system.
- COTI has moved its infrastructure from its DAG protocol to a privacy-centric Layer-2 network on the Ethereum blockchain, and holders can upgrade old COTI to V2 COTI one for one.
What Is COTI (COTI)?
COTI, which stands for Currency Of The Internet, is a blockchain-based payments infrastructure company founded in 2017 by Shahaf Bar-Geffen, Dr. Nir Haloani, and David Assaraf. The project aims to create a scalable and user-friendly platform for digital payments, leveraging blockchain technology to offer fast, reliable, and low-cost transactions.
How Does COTI (COTI) Work?
COTI V1, the original network, relied on two key technologies:
Proof of Trust (PoT)
This consensus mechanism deviates from traditional blockchain mining. Instead, it utilizes a trust score assigned to each user based on past transaction history and behavior. This score determines the fees they pay and their ability to participate in the network. Merchants with high trust scores enjoy lower costs and faster transaction processing.
Directed Acyclic Graph (DAG)
Unlike traditional blockchains that store transactions in linear blocks, COTI employs a DAG structure. Transactions are directly connected, forming a web-like structure. This enables faster transaction processing and higher scalability compared to blockchains.
Process
Here’s a simplified breakdown of how a COTI V1 transaction worked:
- Buyer initiates a purchase – The buyer sends a payment request to the seller.
- Trust score assessed – The network analyzes the buyer’s and seller’s trust scores.
- Fees determined – Based on the trust scores, transaction fees are calculated.
- Transaction validated – Users with high trust scores validate the transaction.
- Payment completed – If validated, the payment is completed and reflected in both parties’ accounts.
Additional Points
COTI has moved its protocol from its Directed Acyclic Graph (DAG) network to a scalable, privacy-focused Layer 2 network built on Ethereum. This new iteration is called COTI V2.
The COTI V2 mainnet launched on March 26, 2025. It uses garbled circuits, a cryptographic method developed with Soda Labs, so smart contracts can compute on encrypted data. Users can turn tokens into private versions and back through the COTI Privacy Portal, and COTI offers “Privacy on Demand” to apps on other EVM chains, so far on test networks.
Holders of legacy COTI in VIPER wallets can swap it for native V2 COTI, with COTI paying the network fees. ERC-20 COTI on Ethereum moves to and from COTI V2 through the COTI Bridge.
COTI (COTI) Token And Tokenomics
Tokenomics
The COTI token is the native cryptocurrency of COTI. It is used for:
- Paying transaction fees
- Staking
Token Details
Total Supply about 2.98 billion COTI (capped at about 4.91 billion)
Circulating Supply about 2.98 billion COTI
Price (early October 2026) about $0.013
Market Capitalization (early October 2026) about $39 million
Price, market capitalization and supply are from CoinGecko as of October 7, 2026, and change constantly. The distribution below predates COTI V2.
Distribution
- Private & Public Token Sales (30%)
- Incentives (45%)
- COTI Team (15%)
- Advisors (10%)
COTI V2 Tokenomics
COTI published the final V2 token model in May 2025. Holders can migrate one for one, and 2 billion V2 tokens were minted to mirror the V1 supply. New COTI is minted on a falling schedule, from a projected 35% in the first year to under 1% a year from year 10, with supply capped at about 4.85 billion in the first decade and 4.91 billion over 100 years. Transaction fees go to a community-governed pool.
Focus On Incentivizing Participation
New tokens are split 58% to community rewards (staking, nodes and liquidity programs), 24% to ecosystem growth (grants, partnerships and exchanges) and 18% to development.
Alignment With Layer-2 Standards
COTI is the gas token of COTI V2, an EVM-compatible Layer 2, so it works with standard Ethereum wallets such as MetaMask.
Where Can I Buy COTI (COTI)?
Binance – Binance is a major exchange offering a wide range of cryptocurrencies. It offers multiple ways to buy crypto, including credit cards, debit cards, and peer-to-peer (P2P) trading.
Coinbase – Coinbase is an American-based cryptocurrency exchange that allows you to buy cryptocurrencies using various payment methods, including bank transfers, debit cards, and wire transfers.
Kraken – A reputable exchange known for its security and compliance, Kraken offers a lot of trading pairs with various funding methods, including bank transfers and stablecoins.
Is COTI (COTI) A Good Investment?
Pros
- Comprehensive solution – COTI offers a complete package for businesses and organizations looking to enter the blockchain payment space. This includes issuing their stablecoins, integrating traditional financial practices, and providing user-friendly tools like a native wallet and exchange.
- Reduced Fees – COTI claims to offer lower transaction fees than traditional payment methods, potentially benefiting both businesses and consumers.
- Hedging Opportunities – COTI’s features, such as the COTI Pay app and trust chain technology, aim to mitigate the volatility of cryptocurrencies, potentially making them more attractive for everyday use.
Cons
- Adoption Challenges – Achieving widespread adoption for a new payment platform can be challenging, especially when competing with established payment networks and systems.
- Dependency on Partnerships – COTI’s success often relies on forming strategic partnerships with businesses, financial institutions, and other stakeholders.
- Technology Risks – While COTI’s technology aims to provide scalable and efficient payment solutions, there are always risks associated with technological innovation.
Before You Add COTI to Your Portfolio
This comprehensive guide should equip you with the knowledge to make informed decisions about COTI and its role in your investment portfolio. Before making investment decisions, please conduct thorough research, understand the inherent risks involved, and never invest more than you can afford to lose.
