Being able to vote using your stake or governance tokens as in this case is a fairly new concept in crypto.
Over the last 7 days the GOTI community has been involved casting their votes with regard to whether or not to reduce the COTI Treasury fees. I think the vote was rather obvious which way it was going because those COTI holders that are invested in the Treasury will benefit. Not necessarily on earning extra rewards via the APR these fees generate, but savings when you withdraw your stake.
Withdrawal fees have basically been cut in half and if you have a few hundred thousand tokens or more then this could be significant values involved. Not huge on a $0.10c token, but if it becomes a $2 or $5 COTI token the fee could be worth $2500 now against paying double or more on the old fees. These new fees go live on the 2nd July.
Those depositing will benefit with the new fee being only 0.5 COTI per 1000 staked vs a 2.5 COTI fee. Maybe more people will stake their COTI now but I doubt if the reduced fees will make much difference. The big difference is the savings on the withdrawal of stake and the community is made up of some really big bag holders.
Roughly only 1/3 rd of GCOTI tokens were used in the vote 23,765,887.89 out of the 66 million staked in the Treasury.
Over 3/1 in favor of lowering fees and like I have mentioned previously in the past the community is greedy and only votes on what benefits themselves. My belief is the APR rewards need to be generated through use cases that have been developed and not milking users depositing or withdrawing their stake. The liquidations that occur when the price dips is correct as there needs to be risk for those maximising their rewards. When liquidations occur we tend to see a spike in the APR even if it is only for a day or two.
This change in fees is not such a big deal or a game changer if you are thinking long term growing your investment because this is a process that involves time and compounding.
Posted Using InLeo Alpha