Layer3 $L3
Layer3 is a protocol providing smart contract infrastructure for multiple blockchains such as the Optimism ecosystem and broader Superchain. The protocol innovates on user engagement through its quest mechanism while offering comprehensive omnichain services including cross-chain swaps, bridges, and a launchpad. In terms of agent coordination, Layer3 coordinates platform activities through three key participant groups: Stakers, Builders, and Platform Users.
Layer3 token design description
Origins of Value
[1] Value Transfer
[3] Governance
[8₁] Conditional Action
[2₁] Future Cashflow
[4] Access
[8₂] Conditional Action
[2₂] Future Cashflow
[7] Risk Exposure
1. VALUE TRANSFER (1)
Represents the value derived from using protocol services through their acquisition via L3 tokens, including quest creation, incentive deployment, and CUBE credentials system utilization. This transfer of value or “exchange” enables participation in the protocol's engagement ecosystem and associated value streams.
represents composite usage of protocol features (quests, incentives, credentials)
represents the efficiency of L3 tokens in accessing protocol services
represents the overall engagement level in the protocol ecosystem
2. RISK EXPOSURE (7)
Represents the value derived from committed protocol participation through token staking, where participants accept market volatility and opportunity costs to gain platform privileges and rewards.
is the amount of L3 tokens staked
is the length of time tokens are staked
represents price volatility risk
represents foregone alternative uses of capital
3. FUTURE CASHFLOW (2₁)
Represents the value derived from continuous token emission rewards distributed through the 'Layered Staking' system to participants who support protocol operations.
is the amount of L3 tokens staked
is the rate of token emissions
represents the staking level in the layered system
represents protocol revenue allocated to stakers
4. ACCESS (4)
Represents the value derived from accessing Layer3's additional platform features, including the launchpad, exclusive activities (campaigns, quests, incentives) and airdrop multipliers. This access enables users to acquire additional rewards and token utility.
represents the set of protocol features accessible
represents the amount of L3 tokens held by the user
5. CONDITIONAL ACTION (8₁)
Represents the need to actively complete quests and engage with platform activities to earn enhanced rewards through multipliers.
6. FUTURE CASHFLOW (2₂)
Represents value captured through activity-based airdrop multipliers, where users earn enhanced L3 rewards based on their level of engagement (e.g., 1.5x multiplier for completing 10 quests, 2x for 20 quests).
represents the base L3 token reward amount
represents the multiplier earned (e.g. 1.5x, 2x)
represents number of completed quests/activities
represents the period over which engagement is measured
7. CONDITIONAL ACTION (8₂)
Represents the value derived from active protocol participation through specific required actions, including governance participation through voting and proposal creation.
8. GOVERNANCE (3)
Represents the value derived from controlling protocol development through treasury management, revenue distribution decisions, and parameter setting within Layer3's three-stage governance process.
represents the governance participation conditions
represents voting weight based on token holdings
represents the impact of governance decisions
represents the total value controlled through governance
Economic Summary
The Layer3 token (L3) implements its core functionality through a layered staking system that requires tokens to be encumbered in the protocol's staking contract. This staked position enables participation in part of the protocol's value capture system, which combines reward distribution, access-rights, and governance capabilities. The remaining portion of value capture rests with value transfer, which does not initially require staking tokens.
The primary value-capturing mechanism of L3 can be described as a multi-layered staking system centered around the Risk Exposure OoV, represented by the commitment of tokens through staking. This base staking mechanism enables users to capture value through multiple streams while maintaining aligned incentives for long-term protocol participation.
The staking mechanism (Risk Exposure) enables token holders to capture value through:
- Future Cashflow through continuous token emission rewards
- Governance rights within the three-stage governance process
- Access to the launchpad service, exclusive activities (campaigns, quests, incentives), and airdrop multipliers
- Additional Future Cashflow through enhanced protocol privileges (i.e. Boosted staking APYs)
Governance functionality require specific Conditional Actions from users, including active participation in proposal discussions, voting, and protocol operations. The governance process follows a structured three-stage system requiring significant token commitment, with 3,000,000 L3 tokens needed for proposal creation and 33,000,000 positive votes for proposal passage.
Based on the presented overview, the Layer3 token implements two main VCMs, and three interconnected sub-VCMs that can be described formulaically as:
Primary VCMs:
- for Value Transfer
- for Vote-escrowed Access
Sub-VCMs:
- for Staked-Based Reward Access
- for Yield-Bearing Stake
- for Generalized Governance
This implementation represents an evolution of traditional staking mechanisms by introducing multi-layered value capture streams that scale with user participation and commitment levels.