Question 1

What is COTI?

Accepted Answer

COTI is the native currency symbol of the COTI network and the token used for transaction fees and ecosystem functions in the COTI V2 design. COTI V2 is a Layer 2 network built on Ethereum, positioned to provide privacy, scalability, and programmability for payments, smart contracts, and other financial applications. Therefore, COTI is not a native asset of the underlying Ethereum network; it is used as the network currency on the COTI mainnet. The specific cross-chain version or contract address must match the network and wallet a user is actually using.

Question 2

What is the COTI V2 mainnet?

Accepted Answer

COTI V2 is an Ethereum Layer 2 network: applications run in the COTI network environment, while Ethereum provides its underlying ecosystem and settlement foundation. Official documentation describes the network as financial infrastructure combining privacy, scalability, and programmability. The mainnet parameters list the network name as COTI, the chain ID as 2632500, and the currency symbol as COTI. These parameters are used to connect wallets and applications to the correct network; they do not represent any particular token contract or cross-chain asset version.

Question 3

What does private computation mean in COTI V2?

Accepted Answer

A core capability of COTI V2 is private computation: smart contracts and token interactions can perform computation while protecting sensitive inputs or results, rather than displaying all related data directly in public. The official materials list advanced cryptographic technologies such as Garbled Circuits as an implementation path. Private computation does not mean “no verification is required.” Its goal is to retain both executability and a degree of confidentiality in on-chain financial applications; which data are visible to whom and how specific functions are called still depend on the implementation of the application and contract.

Question 4

What is the practical significance of EVM compatibility for COTI V2?

Accepted Answer

COTI V2 is EVM-compatible, meaning developers can continue using Ethereum Virtual Machine smart-contract and tooling patterns to build applications and incorporate private-computation capabilities into the relevant contract interactions. Compatibility reduces the transition cost of development and integration; it does not mean every Ethereum application can obtain privacy properties without modification. To use COTI's private computation, an application still needs to design and deploy contracts using the methods supported by the network. EVM compatibility addresses the connection of the execution environment and toolchain, while privacy logic is a separate specialized capability.

Question 5

How is COTI used for transaction fees in the network?

Accepted Answer

In COTI V2's economic design, COTI can be used to pay transaction fees and serve ecosystem functions. When a user initiates an operation requiring network resources, the fee is part of that operation's cost; the actual fee amount depends on the resources required by the transaction and the network rules at the time, rather than being determined solely by token holdings. The whitepaper also connects fee flows with a community-governed treasury: fees first form treasury resources, and governance determines how those resources are subsequently used. Therefore, “paying fees” and “how the treasury allocates or handles funds” are connected but distinct stages.

Question 6

How does COTI's fee treasury work?

Accepted Answer

The COTI V2 design includes a community-governed treasury into which network fees can flow. The treasury concentrates fees generated by the network into resources whose uses can be decided through governance, rather than committing every fee in advance to a single recipient. The whitepaper proposes that the treasury may be used to reward network participants or handled through measures such as burning a portion of tokens; the specific approach requires governance selection. Accordingly, “fees enter the treasury” cannot be directly described as guaranteed rewards, guaranteed burning, or fixed returns.

Question 7

What is the relationship among network fees, treasury governance, and token burning?

Accepted Answer

After fees enter the treasury, governance decisions determine whether the funds are used to incentivize participants, support other treasury uses, or handled in ways that include burning. Fees themselves are the input generated by network usage, while governance is the stage that determines subsequent resource allocation. Therefore, increased network activity only indicates that the input of fee inflows may increase; whether it results in any particular rewards, burning, or other effects also depends on actual fees, treasury rules, and governance decisions. Trading volume or network upgrades cannot be directly equated with changes in COTI supply or price outcomes.

Question 8

How should COTI V2's issuance and inflation design be understood?

Accepted Answer

The COTI V2 whitepaper describes directions for an economic model including upgraded token infrastructure, periodic additional issuance, and declining inflation. These elements describe the V2 design approach: supply changes can be influenced jointly by additional issuance mechanisms and governance/fee handling. Parameters or allocation plans in design documents should not automatically be treated as circulating-supply data already effective at a given point in time. When analyzing supply, it is necessary to confirm separately whether issuance rules have been implemented, how tokens are allocated or unlocked, and whether any burns or other handling have been executed.

Question 9

What important recorded upgrades has the COTI V2 mainnet undergone?

Accepted Answer

COTI V2 mainnet documentation records implemented hard forks: Hydrogen at block 3,640,378 on October 19, 2025; and Helium at block 5,098,638 on January 11, 2026. A hard fork is an event in which the network begins operating under new-version rules at a specified upgrade point. These records only demonstrate that the relevant versions were implemented at the listed blocks; without release notes, they cannot support an inference that each upgrade necessarily changed particular economic parameters, privacy functions, or user fees. “The upgrade was implemented” and “a specific feature was adopted” should be assessed separately.

Question 10

What conditions should be distinguished before using a private application on COTI V2?

Accepted Answer

Ordinary transfers and private-computation contract interactions have in common that both need to execute on the COTI network and pay applicable fees; the difference is that a private-computation interaction additionally requires the contract to use the corresponding privacy-computation logic to process sensitive data. Simply transferring assets to the COTI network does not automatically make any interaction private computation. For users, it is necessary to confirm separately that the wallet is connected to the correct mainnet, that the asset is a version usable on that network, that the application genuinely supports the required private functionality, and that fees are reserved for the transaction. If these conditions are absent, subsequent stages may not be completed.

Question 11

How are COTI V2's technical capabilities connected to COTI token mechanisms?

Accepted Answer

COTI V2's technical layer includes an Ethereum Layer 2 architecture, EVM compatibility, and private computation; its economic layer includes paying fees in COTI and a community-governed treasury. The technical layer determines how applications can execute and protect data, while the economic layer determines how fees become resources configurable through governance. The two are connected through actual usage: operations initiated by users and applications consume network resources and generate fees, which then enter the treasury. However, there are independent conditions between technical capability and network adoption, and between fee inflows and governance decisions; these stages cannot be omitted.

Question 12

Which concepts are most easily confused when analyzing COTI?

Accepted Answer

When understanding COTI, at least four categories of information should be distinguished: currently verifiable network parameters and recorded upgrades on the mainnet; technical capabilities such as private computation and EVM compatibility; fee, treasury, and economic-model designs in the whitepaper; and the actual version of a wallet asset on a specific network. These types of information cannot substitute for one another. For example, a whitepaper's inflation design is not the same as real-time circulating supply, a hard-fork record is not the same as every application having adopted a feature, and COTI as the mainnet currency symbol does not automatically confirm the identity or usability of any cross-chain version.

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