Coti, the Ethereum-based confidentiality layer, has unveiled plans to distribute $10 million worth of Coti v2 tokens through an airdrop initiative. The airdrop is set to reward existing Coti (COTI) token holders and treasury participants, extending the eligibility automatically.
Coti v2: A privacy-centric layer-2 protocol
Coti v2 emerges as a privacy-centric layer-2 protocol on Ethereum, designed specifically for securely transmitting sensitive data across Web3 applications. The upcoming airdrop campaign, scheduled to commence on March 25, will distribute 40 million Coti v2 tokens to existing native and ERC-20 COTI holders. However, token distributions will commence in the final quarter of 2024 after its token generation event.
In addition to existing COTI token holders, Coti has extended the eligibility for airdrop rewards to all treasury participants. This initiative aims to appreciate early supporters and bolster community engagement. The company emphasizes that the airdrop complements existing annual percentage yield rewards for token holders. Users with deposits in the Treasury, especially those deposited before February 28, 2024, will receive additional bonuses as a token of gratitude from the COTI team.
With Coti’s treasury boasting a total value locked of approximately $98.7 million, the rewards for each investor will be contingent upon their depth of involvement in the ecosystem. Coti anticipates that the launch of Coti v2 will unlock new use cases for the Web3 economy, particularly through enhanced confidentiality features.
Extension of rewards and lock periods
Furthermore, Coti plans to augment rewards by introducing longer lock periods of 180, 270, and 360 days, effective March 25. This strategic move aims to encourage sustained participation and commitment from investors.
The announcement coincides with a burgeoning trend in the cryptocurrency industry, characterized by an influx of token airdrops. In January 2024 alone, protocols offered $700 million in token airdrops within a week. Notable projects such as AltLayer, Dymension, and Jupiter have spearheaded this trend, incentivizing user engagement through token rewards.
Precautions for investors
While airdrops present lucrative opportunities for crypto enthusiasts, investors are cautioned to conduct thorough research on projects before committing funds. The prevalence of impersonation scams underscores the importance of vigilance in the crypto landscape. Users are advised to remain vigilant against accounts impersonating reputable crypto projects, often luring investors with unrealistic promises of returns.
Coti’s $10 million Coti v2 token airdrop underscores its commitment to rewarding community participation and fostering long-term engagement. By extending eligibility to existing token-holders and treasury participants, Coti aims to cultivate a robust ecosystem while unlocking new possibilities for Web3 applications.
However, investors are urged to exercise caution and diligence amidst the burgeoning trend of token airdrops, remaining wary of potential scams and unrealistic promises. With strategic initiatives like extended lock periods, Coti seeks to incentivize sustained involvement, heralding a promising era for decentralized finance.
