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
Value Capturing Mechanisms
1. THE VALUE TRANSFER TOKEN
This VCM represents value generated through value transfer in order to use Layer3's core protocol features. Users spend L3 tokens in exchange for the the ability to post quests, deploy incentives, and utilize the CUBE credentials system. The value capture process is straightforward: users must spend an amount of tokens to acquire the use of these features. This value capture mechanism incentivizes protocol utilization by directly tying token expenditure to core service offerings, driving sustained demand through active usage.
The primary value-capturing structure of Layer3 outlines the three sub-mechanisms jointly conditioned on staking (the central Risk Exposure element):
1.1. YBST - THE YIELD-BEARING STAKING TOKEN
This sub-VCM represents value generated through staking rewards earned by accepting token lock-up risks in the Layered Staking system. Participants can stake their L3 tokens in different layers, each with specific requirements and reward structures. The value capture process involves:
- Users stake L3 tokens, accepting market volatility and opportunity costs (Risk Exposure)
- Continuous token emissions are earned based on stake size and duration (Future Cashflow)
The layered approach creates differentiated incentives for various commitment levels, promoting sustainable token economics and long-term protocol alignment.
1.2. THE STAKE-BASED REWARD ACCESS TOKEN
This sub-VCM represents value generated through gated access to Layer3's additional platform features. Users who stake L3 tokens gain the ability to access the launchpad, exclusive activities (campaigns, quests, incentives) and airdrop multipliers. The value capture process is straightforward: users must maintain a staked token balance to access these features, with different forms of functionality. This gating mechanism ensures aligned participation while driving demand for the token.
1.3. THE GENERALIZED GOVERNANCE TOKEN
This sub-VCM represents value generated through protocol governance rights earned by accepting staking risks and active participation. The governance process follows a structured three-stage system where stakers can influence protocol decisions including treasury management and revenue distribution. The value capture sequence is:
- Users must stake L3 tokens, accepting market volatility risks (Risk Exposure)
- Governance rights are granted proportional to stake (Governance)
- Value is realized through active participation in proposal creation and voting, with requirements like minimum discussion periods and voting thresholds (Conditional Action)
This mechanism ensures that governance power is tied to both economic stake and active protocol engagement.
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.