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[source](https://twitter.com/COTInetwork/status/1484195409081692170/photo/1)

I thought I would put a post together for the @leofinance community so everyone who is interested could have a clear understanding of what is the Treasury on COTI. 

Over the last few days I have been doing quite a bit more research into the COTI treasury which is due to launch this month. At first I was a bit miffed as South Africa I was lead to believe was on the restricted list for staking. This is not so and why I have dived in learning what I can in preparation for what should be a great investment. Always do your own due diligence and don't take my word for it but I am all in on this. I believe service backed crypto is something that is going to boom over the coming years and banking realted services is an obvious need. 


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If your country is on this list don't lose heart as this will open up for everyone. I know the people in the States are feeling left out and this is somehting that is being worked on behind the scenes.

The explanation I have been told is COTI being a bank has to jump through far more regulations than any other project. They want to make things right from day one so obtaining the correct permissions and licenses has to be done correctly. They are an institution at the end of the day and are also seen as the enemy. The COTI team are breaking down doors which will make it easier for everyone else eventually who follows. If I was in the States I would continue to accumulate as the price will go up. That is my opinion and I will explain why or try to anyway in this post.

The COTI Trustchain is the COTI blockchain and has been ramped up to the current version 2.0. They have scaled this so there will be no issues handling all the traffic. The next version 3.0 is already being worked on as this can never stand still as developing never stop.

### The Treasury What Is It?

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[source](https://twitter.com/CryptoKev89/status/1484098389352591363/photo/1)

The treasury lies at the heart of the entire COTI eco system. This is where your COTI is staked and where your returns will flow into. For example if there is 100 million COTI staked and you have 1 million COTI then you will receive 1% of the treasuries earnings. I will get onto that next as this is where and how things will work.

Currently there are 6 earning categories that funnel into the Treasury. Some are not that obvious as we will soon find out as the rewards filter through. Up until this point the rewards from staking have been paid for by Merchants using COTI payment services. As we know the minimum was 15% right up to 35% which is a fair whack. Somehow the feeling is this could be much more lucrative than the original staking as so many extra revenue streams are going to be flowing directly into the Treasury.



### Enterprise And Merchant Services

Has been the core earnings so far for COTI up to this point. Crypto processing, API integrations. COTI PAY business is the correct term for this. Stable coins will be offered to Merchants needs and managed with no start up fees. Processing costs would be slashed for merchants using this. COTI is already processing over $250 million per year in transactions which is expected to explode as more merchants join. Fees for using the Trustchain will also filter through from merchants.

### Stable Coin Factory

This will be bigger than most people are thinking. The ability to offer stable coins not only to merchants, but to countries. The fess associated with the minting, burning keeping the coin stable. This is not limited to the COTI protocol which was a hint dropped a few months back telling everyone something else is happening behind the scenes. Cardono's stable coin DJEd will have those fees for transactions, burning and minting all sent to the treasury.

### Treasury Services

lending/borrowing is on the table for users to loan funds with set interest fees. The COTI staked in the Treasury will be active and this is up to the stakers who have a say in how it runs with the GOVI token. Earnings all flow to the Treasury from these transactions.

### Ecosystem And Partnerships

Various partnerships where COTI is involved such as the Crypto Volatility Index which is sill new earns a decent return. Reports suggest it was making in excess of $1 million and has only been operational a few months.
ADAPAY is also part of this section plus a few other projects that are expected over the coming months once the treasury is launched. FIAT earned from banking solutions also is flowing back into COTI and this is expected to grow considerably.

### Trustchain

Network fees, the bridge fees, API fees and COTI X fees this is expected to become a decent source of income as the entire eco system grows.

How much can this grow is what everyone is thinking right now and that is a good way of thinking as the potential to become a top 10 token is very possible.

The Treasury is going to have different levels of earning through risk and leverage. For those that just want to earn with no risk like myself there is that option being number 1 going up to a level 4 which is expected to be a very high APY. The amount that is staked over a set period of time of your choosing with which risk factor involved is where the rewards are made and lost.

COTI has their own banking cards available which one can move from the treasury directly into that banking account.

I have COTI staked on Binance currently which that token is not compatible with the treasury which uses the native COTI token. I could use the COTI bridge moving the COTI ERC 20 to the viper wallet converting them into COTI native but that has fees attached. Anything involving ETH as we all know can add up being quite costly. My advice is to sell your COTI for USDT and transfer to Kucoin and then purchase COTI native then transferring to your Viper wallet on COTI. This should save you a few hundred COTI in fees and exactly what I will be doing shortly.  

Summing this whole Treasury business up this is COTI's equivalent of DeFi offering something more than just staking. How many millions will flow into this system is anyone's guess but with the Cardano DeFi using DJED it should be serious amounts of dollars. Throw in merchants, stable coins and the possibility of countries using COTI services this should be a monster. I am not saying this to get anyone to invest as this has been mentioned on numerous occasions already so something is happening that hasn't been announced as yet.

Treasury will be open by the end of this month so announcements are imminent. Please always do your own due diligence if you are planning to get involved in this project or any others.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@cryptoandcoffee/coti-treasury-some-more-information-helping-to-explain-how-and-where-the-rewards-you-earn-are-generated)