The COTI ICO
What is COTI?
COTI is a cryptocurrency payment network that the COTI team hopes will solve problems inherent in current networks. Current crypto-payment networks are plagued by slow transaction times, price volatility, and lack of protection for buyers and sellers.
Some networks have tried to solve these problems by implementing DAG-chain (Directed Acrylic Graph) protocols. These protocols should allow networks to have faster transaction times as they gets larger, instead of the opposite situation. However, DAG-chain cryptocurrencies such as NANO and IOTA have still failed to produce the instantaneous transaction speeds traditional credit-card users have come to expect. In addition, these networks do not comply with KYC and do not offer buyer and seller protections.
The COTI team believes these problems can be solved by using DAG for the payment system and delegated proof-of-stake to select arbitrators that will resolve disputes between merchants and customers. This will create a low-cost cryptocurrency network that can effectively compete with credit cards as a payment system.
How does COTI work?
When a user opens an account on the COTI network, a public and private key is generated from a random seed function, along with a Trust Score. The Trust Score is a number between 1 and 100. Merchants begin with a Trust Score of 0. They must fill out KYC documents in order to achieve a Trust Score of at least 1, or else they will not be able to use the network.
Customers begin with a Trust Score of 1. They can use the network without submitting documents, but will have faster transactions if they provide documentation. Once initial documents are submitted, the Trust Score increasingly becomes determined by user behaviour. Over the long run, all network participants are encouraged to engage in trustworthy actions so that they will have faster transaction times.
If a customer claims that a merchant defrauded him/her, the customer can send the transaction to mediation. Mediators are chosen based on their high Trust Scores. They get paid mediation fees in return for accurately using real-world information to mediate disputes. If a mediator fails to accurately resolve disputes, the mediator's Trust Score will fall and he/she will eventually be stripped of mediator rank.
Because of these features, the COTI team believes this network will be the most popular crypto-payment system in the future.
How is COTI unique?
The principal competitors to COTI are both traditional credit-card companies like Visa and Mastercard and DAG payment networks like NANO and IOTA. However, credit-card companies have very high transaction costs. So the COTI team believes it will be able to effectively compete with them. At the same time, other DAG payment systems do not offer dispute resolution, so COTI believes it will effectively be able to compete with them as well.
Who makes up the team behind COTI?
The COTI team is made up of experts in software engineering, marketing, and blockchain technology. It includes CEO Shahaf Bar-Geffen (former CEO of WEB3 Group), CTO Dr. Nir Haloani (former CTO of Articoolo Research), Business Development Lead David Assaref (former Chief Internal Auditor for HSBC), and 17 other software developers, marketers, and business experts.
More details about the COTI ICO
The COTI ICO is launching at 10 pm (GMT) on 15 June, 2018 and will end at 10 pm (GMT) on 1 July, 2018. For the public, tokens will be transferable as soon as the ICO ends.
The COTI tokens (COTI) will cost US$0.10 each, to be paid in ETH, BTC, or fiat equivalent. The minimum investment amount for each individual to participate is US$50,000. Contributors who agree to lock up their tokens for a period of time will receive discounts on their token purchases. These discounts will be 5% for a 6-months lockup, 10% for 12 months, and 20% for 24 months. The team hopes to raise US$30 million total.
The June 15 public sale will comply with the following allocation strategy:
30% of the tokens will be sold in the ICO
22% will be kept in reserve
15% will be given to the team
10% will be given to backers, partners, and advisors
13% will go to the incentive program
10% will be used to provide liquidity
The funds raised will be used in the following manner:
30% will pay for research and development
15% will pay for marketing of the network
12% will be used to pay for licenses and capital requirements
9% will pay for legal requirements
8% will pay for merchant services
7% will fund the automated market maker
7% will be used to invest in other projects that build upon COTI network
7% will be used for operational expenses