article

What is the use case of Coti coin?

Nahid
Published: May 27, 2025
(Updated: May 31, 2025)
2 min read
What is the use case of Coti coin?

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The COTI coin serves as the backbone of a privacy-first infrastructure layer on Ethereum. With the evolution of COTI V2, the token's role has expanded beyond payments into powering confidential computation, protocol governance, and DeFi interactions.

At the heart of COTI’s ecosystem is its confidential computing Layer 2, which leverages garbled circuits to enable encrypted computations. In this model, users pay gas fees in COTI to execute computations that protect the privacy of their data. This gives COTI utility every time someone performs a private smart contract action or builds with the protocol. COTI is also central to the Treasury, the protocol’s staking and reward system. Users can stake COTI into the Treasury to earn yields, contribute to network security, and gain access to exclusive features as the ecosystem matures. The Treasury acts as the liquidity hub and economic coordination layer for the protocol.

Another major use case is COTI’s role in the Djed stablecoin, the official overcollateralized stable asset on the Cardano blockchain. COTI is responsible for issuing, managing, and maintaining the Djed smart contracts. While this use case exists outside Ethereum, it remains an active stream of real-world utility for the token. As COTI V2 develops, additional utilities will include:

  • Incentive rewards for validators, relayers, and data contributors 

  • COTI is the gas token of COTI V2 which has the following usecases
  • Paying for tooling or SDK access for developers building privacy-preserving apps

  • Governance participation, allowing stakers to help shape treasury strategy, token issuance logic, and roadmap decisions

COTI’s design positions it as a multi-purpose token: it drives core activity, incentivizes participation, and ensures economic alignment between users, developers, and the protocol itself.

EXPLORE MORE :
1. Who are Coti competitors?
2.What are the expectations for the COTI coin? 
3. Will COTI recover?
4. Who is the founder of Coti?
5. ⁠COTI FAQ 

 

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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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