Ethereum-based privacy layer Coit will distribute a total of $10 million worth of Coti v2 tokens to native Coti (COTI) token holders.

Coti v2 is a privacy-focused layer-2 protocol on Ethereum dedicated to the secure transmission of sensitive data in Web3 applications.

The company announced plans to launch community rewards by airdropping 40 million Coti v2 tokens to existing native and ERC-20 COTI holders.

According to the announcement shared with Cointelegraph, the Coti v2 air drop campaign will begin on March 25. However, the distribution of Coti v2 tokens will begin in the last quarter of 2024, immediately after the token creation event.

In addition to existing COTI token holders, eligibility for air release rewards is automatically extended to all treasury participants. Coti stated that the air release is in addition to all annual percentage return rewards for token holders.

Coti's treasury value stood at approximately $98.7 million at the time of writing. Rewards for investors will be determined by the depth of participation in the ecosystem. The company is positioning the Coti v2 launch as the key to unlocking brand new use cases for the Web3 economy through privacy.

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