Layer3 and L3 Token Explained

What is Layer3?

Layer3 is an innovative crypto platform that aims to redefine the way attention is valued and distributed within the digital universe. It is a platform that can be viewed as a SocialFi project, but in reality, it does a lot more than just connect people. Users can trade and bridge crypto to over 25 different blockchains and complete quest-style incentives for different decentralized ecosystems.

The L3 token, which serves as the main medium for staking, governance, and accessing network features, is what powers the Layer3 ecosystem. With a deflationary tokenomics model, Layer3 incentivizes active participation through rewards and exclusive opportunities, creating a self-sustaining ecosystem. The platform supports community-led governance and promotes equitable token distribution.

As one of the pleasant surprises of this market cycle, Layer3 leverages omnichain infrastructure to facilitate the distribution of identity credentials and incentives across multiple blockchain networks. The platform is currently trusted by 1.1 million users who combinedly made over 59 million transaction.

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How Does Layer3 Work?

Layer3 allows users to complete interactive tasks, called Quests, to explore various DeFi, NFT, and DAO projects. To begin, users connect their crypto wallet to the platform, allowing them to take part in quests involving activities such as token swaps, staking, and using dapps. Layer3 users receive rewards in the form of XP (experience points) or CUBEs (Credential to Unify Blockchain Events).

L3 is Layer3's native token, and those who stake it can earn additional rewards, participate in governance, and gain access to other exclusive features. Users are rewarded for their participation, and the platform also functions as an educational tool, introducing them to new Web3 projects. Layer3 effectively increases traffic and engagement for other Web3 projects.

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Layer3 L3 Airdrop and Tokenomics

Layer3 has already started its L3 token airdrop and is on Season 3. The platform has also shared a comprehensive tokenomics model, detailing the allocation and distribution of its tokens as well as other future plans.

Here is an overview of the L3 airdrop tokenomics:

• Token Allocation: Total supply of L3 tokens is 3,333,333,333 with 51% reserved for the community, distributed over four years with decreasing yearly percentages (40% first year, 30% second, 20% third, and 10% fourth).
• Vesting Schedule: Tokens for core contributors, investors, and advisors are under a four-year lockup. No tokens are released in the first year, and starting in the second year, 33% of the tokens are unlocked annually and distributed daily.
• Airdrop Details: The L3 airdrop distributes 250 million L3 tokens to early users and participants in the first two seasons, with a larger share for early users and Season 1 participants than Season 2.
• Burn Mechanisms: L3 uses two burn mechanisms to maintain a deflationary model, aligning token value with network growth and user engagement.
• Community Governance: The L3 DAO and Layer3 Foundation manage a portion of the tokens set aside for upcoming community airdrops and incentives to encourage ongoing participation.
• Future Incentives: The remaining community allocation of L3 tokens will be distributed through 'layered staking' and ongoing airdrops to reward active users.

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L3 Staking Explained

One of the key features of the L3 token is its staking mechanism, which is constructed to stimulate active participation and engagement within the whole Layer3 ecosystem. Here's how L3 staking works:

• Staking Process: To stake your L3 tokens, users need to visit the Layer3 staking page and connect a crypto wallet, select an amount of L3 tokens they wish to stake, and an optional lock period for a higher APY.
• Multiple Stakes: You can hold multiple stakes simultaneously, each with independent sizes and durations. Your total staked amount and rewards are shown under "Staked + Rewards," allowing you to manage individual stakes easily.
• Claiming Rewards: You can claim and re-stake your rewards at any time to compound earnings or transfer them directly to your wallet.
• Locks and APY: Locking tokens for longer periods results in higher APY, rewarding those who commit to long-term engagement. Unstaking is possible anytime, with a 7-day withdrawal period on unlocked stakes.
• Layered Staking Model: offers three levels of benefits: Layer 1 (not Layer 1 blockchain) provides passive L3 staking rewards and governance participation, Layer 2 grants access to exclusive quests and a tiered reward system, and Layer 3 rewards active users with multipliers on L3 distributions.

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Funding and Backing

Layer3 recently closed a $15 million Series A funding round, with investors including ParaFi and Greenfield Capital, as well as contributions from Electric Capital, King River, and others. Layer3 previously raised $3.7 million in a strategic round in 2022, following a $2.5 million investment in 2021. These $21.2 million investments demonstrate strong investor confidence in Layer3's approach to improving the Web3 ecosystem through its innovative attention and tokenomics models.

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Layer3 Founders

Layer3 was co-founded by Brandon Kumar and Dariya Khojasteh, who are dedicated to transforming the landscape of user engagement and token distribution in the crypto space. Brandon Kumar emphasizes the importance of making token distribution more efficient and cost-effective, envisioning a future where tokens become a central mechanism for user engagement across various projects.

Dariya Khojasteh highlights Layer3's role as a catalyst in decentralizing the attention economy, aiming to make it significantly easier for projects to reach and engage users while ensuring that the value generated accrues directly to them. Together, they lead Layer 3, with a focus on creating a more inclusive and accessible crypto ecosystem.

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Bottom Line

Layer3 is one of the more unexpected gems of the past year. Many might've regarded it as just another messaging app, but the project has grown into an all-inclusive Web3 hub for projects from over 25 blockchains. Nowadays, you can do almost anything crypto-related on Layer3 from trading and swapping to engaging in different DeFi ecosystems.

The biggest break for the project, however, comes with the introduction of the L3 token and the massive 51% allocation for the community, with no first-year distribution for VCs and team members. Obviously, they've learned from other recent airdrops and are doing great in prioritizing users first, which corresponds fantastically with the whole product that Layer3 has built.