Ethereum-based confidentiality layer Coit will distribute Coti v2 tokens worth $10 million via airdrop to the holders of its native Coti (COTI) token.

Coti v2 is a privacy-centric layer-2 protocol on Ethereum dedicated to safely transmitting sensitive data over the blockchain across Web3 applications.

The company announced an upcoming community rewards initiative, which involves airdropping 40 million Coti v2 tokens to its existing native and ERC-20 COTI holders.

According to the announcement shared with Cointelegraph, the Coti v2 airdrop campaign will commence on March 25. However, the distributions of the Coti v2 tokens will start in the last quarter of 2024, right after its token generation event.

In addition to the existing COTI tokenholders, the eligibility for airdrop rewards is also automatically extended to all treasury participants. Coti further noted that the airdrop is in addition to all annual percentage yield rewards for tokenholders. The announcement states:

“Users simply need to have a deposit in the Treasury to participate, but those who have made deposits before February 28, 2024, will receive an additional bonus as a show of the COTI team’s gratitude for their early support.”

Coti’s treasury had  a total value locked of roughly $98.7 million at the time of writing. Rewards for each investor will be determined based on their depth of involvement in the ecosystem. The company positions the Coti v2 launch as the key to unlocking brand-new use cases for the Web3 economy through confidentiality.

The company also plans to extend rewards further by offering longer lock periods of 180, 270 and 360 days starting March 25.

Related: Starknet populated by airdrop hunters ahead of token launch: Report

January 2024 marked the start of the airdrop season as protocols cumulatively offered $700 million in token airdrops in just a week.

As Cointelegraph previously reported, the Ethereum scaling solution AltLayer, multilayer rollup deployer Dymension and the Solana-based decentralized exchange Jupiter were prominent protocols that offered rewards to their users.

Crypto users hunting for crypto token airdrops on X are advised to do extensive research on projects they intend to invest in. Additionally, investors must be on the lookout for accounts impersonating prominent crypto projects, often promising unrealistic returns on investment.

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