How to do your COTI taxes
What is Coti?
COTI is a layer 1 blockchain ecosystem that aims to revolutionize payments, providing faster transactions with lower fees using a unique consensus algorithm called Proof of Trust. The native token, COTI, operates on three different mainnets and is used to pay transaction fees, as well as earn rewards by staking in the COTI Treasury.
Follow these steps to sync your COTI data automatically to Koinly:
- Open your COTI wallet app
- Locate and copy your public address or key
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find COTI in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
Your frequently asked questions
How are COTI transactions taxed?
Wherever you live, chances are your COTI transactions will be taxed. Generally speaking, any gain from selling, trading, or spending COTI will be subject to Capital Gains Tax, while earning COTI - for example, through staking rewards - will be subject to Income Tax. But crypto tax varies depending on where you live, so make sure to learn about the crypto tax rules in your country.
How do I get a COTI tax report?
The easiest way to get a COTI tax report is to use a COTI tax calculator like Koinly. All you need to do with Koinly is connect automatically using your public address and Koinly will import your COTI transaction history, identify your taxable transactions and calculate your gains, losses, and income. After Koinly has finished its calculations, it'll generate a crypto tax report, ready to help you file.
How do I export my COTI transaction history?
This very much depends on the COTI wallet you're using. Some COTI wallets may allow you to export a CSV file of your transaction history for accounting and tax purposes, while others may not. But you can always use a crypto tax calculator like Koinly to export your COTI transaction history automatically using your public address.
What is a Proof of Trust consensus mechanism?
COTI’s Proof of Trust consensus mechanism is rather unique. It’s a combination of Trustchain (a DAG-based data structure) and Proof of Work. In the PoT system, validators are selected based on their trust score, which is calculated by their historical behaviour and payment statistics. The higher the trust score, the faster the transaction and the lower the fees.
How many COTI coins are there?
COTI has a maximum supply of 2,000,000,000. Roughly 60% of the maximum supply is currently circulating at the time of writing.