Layer3

[7] = ƒ(staked_amount, staking_duration, market_volatility, opportunity_cost)

• staked_amount — is the amount of L3 tokens staked
• staking_duration — is the length of time tokens are staked
• market_volatility — represents price volatility risk
• opportunity_cost — represents foregone alternative uses of capital

[2₁] = ƒ(staked_amount, emission_rate, staking_tier, protocol_revenue)

• staked_amount — is the amount of L3 tokens staked
• emission_rate — is the rate of token emissions
• staking_tier — represents the staking level in the layered system
• protocol_revenue — represents protocol revenue allocated to stakers

[4] = ƒ(features_enabled, tokens_held)

• features_enabled — represents the set of protocol features accessible
• tokens_held — represents the amount of L3 tokens held by the user

[8₁] = binary

[2₂] = ƒ(base_airdrop, activity_multiplier, engagement_level, time_window)

• base_airdrop — represents the base L3 token reward amount
• activity_multiplier — represents the multiplier earned (e.g. 1.5x, 2x)
• engagement_level — represents number of completed quests/activities
• time_window — represents the period over which engagement is measured

[8₂] = binary

[3] = ƒ([8₂], voting_power, proposal_outcomes, treasury_size)

• [8<sub>2</sub>] — represents the governance participation conditions
• voting_power — represents voting weight based on token holdings
• proposal_outcomes — represents the impact of governance decisions
• treasury_size — represents the total value controlled through governance

[1] = ƒ(service_usage, token_utility, network_activity)

• service_usage — represents composite usage of protocol features (quests, incentives, credentials)
• token_utility — represents the efficiency of L3 tokens in accessing protocol services
• network_activity — represents the overall engagement level in the protocol ecosystem