Understanding Layer3: Dual Burning + Three-Layer Staking, Unlocking the Huge Potential of Attention Economics
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Understanding Layer3: Dual Burning + Three-Layer Staking, Unlocking the Huge Potential of Attention Economics
Layer3 aims to build decentralized on-chain infrastructure and unlock the immense application value behind attention economics.
Navigating Web3 tides with focused insightsWritten by: TechFlow
Whether people accept it or not, "fundamental investing barely makes money" has become a snapshot of the current state of crypto investment.
Fundamental value investing yields minimal returns, while the Meme sector repeatedly leads the rebound after sharp declines. A constant stream of new Memecoins consistently sits at the forefront of market trends.
The strong inclusivity and transformative power of Meme culture have generated massive wealth effects in the crypto world: Memes can quickly absorb and convert various social hotspots into speculative capital within the crypto space.
"Everything can be a Meme" finds its best expression in the crypto world. The continuous wave of Meme-driven financial frenzies directly points to the essence of wealth creation: attention economy.
In the previous bull market, Memecoins might have been just the dessert after a grand feast, but looking beyond appearances, this reflected how market attention was drawn to other narratives amid endless trending stories. Today, the resilient price performance of Memecoins reveals the enormous potential embedded in the attention economy.
Fragmented and rapidly evolving crypto information means this market never lacks hot topics. Especially as the crypto market matures, with各方 determined not to pass the bag to each other, attention has clearly become a scarce resource.
How to guide and effectively utilize market attention, unlocking the immense value behind the attention economy, has become a crucial issue in the crypto world.
On this front, Layer3, which has long focused on tokenizing attention, already has its own answer.
As the first encrypted protocol to commercialize the attention economy, Layer3 aims to build decentralized infrastructure on-chain to unlock the vast application value behind the attention economy.
Layer3 will open its airdrop allocation check on July 24 and is scheduled for TGE shortly thereafter.
This article will explore how the Layer3 platform breaks existing market perceptions through cross-chain identity and innovative distribution protocols, leveraging a groundbreaking tokenomics model to enable fair token distribution and future flywheel effects, effectively capturing the market potential of monetized attention.
More than a task platform: Layer3’s ambitious vision
For advanced on-chain users, Layer3 is certainly a familiar name. Entering the market as a task platform, Layer3 aggregates diverse projects, enabling users to interact with cross-chain projects through a single interface.
Riding the bull market wave, various chain ecosystems have reignited, pushing Layer3's user numbers and platform interaction data to new highs.
The platform has now processed 100 million interactions, boasts over 4.3 million users, nearly 210 million CUBEs minted, and has established partnerships with high-quality projects such as Robinhood and Linea.
Beyond these impressive metrics, Layer3 differs from the common perception of being merely a "bounty task platform." Instead, Layer3 defines itself as a "cross-chain identity and token distribution protocol."
Clearly, Layer3's ambitions extend far beyond competing in the crowded task platform space, aiming instead toward a longer-term narrative future.
Cross-chain identity and smart distribution protocol: enabling users to “run once only”
Layer3 has aggregated nearly all currently popular ecosystems. The on-chain footprints generated by project interaction tasks on Layer3 have led the team to focus on the decentralized identity (DID)赛道.
Its unique distribution protocol supports multiple blockchains and decentralized applications across different ecosystems, generating a unified on-chain identity view for users interacting with various chains and dApps. Through Layer3’s on-chain identity system, users no longer need to collect information manually or switch between platforms due to fragmented on-chain activity.
Each time a user completes a project task on the Layer3 platform, they receive a CUBE as proof of completion, with their activities across fragmented chains recorded via public keys. In other words, CUBEs serve as another form of on-chain footprint verification, effectively solving the problem of fragmented on-chain identities and unifying users’ cross-chain identities and actions.
Through technological innovation, Layer3 organizes and consolidates users' on-chain footprints, categorizing different interaction standards such as asset ownership, on-chain activities, credentials, social graphs, and task participation. Then, systematically and automatically distributes various tokens according to specific timelines.
By providing a widely used and verifiable "proof of on-chain attention" protocol, Layer3 helps projects effectively attract and retain users. Meanwhile, Layer3’s streamlined project interaction + customizable token distribution continuously boosts user engagement, creating an ecosystem flywheel effect.
Funding background and experienced team
In June this year, Layer3 completed a $15 million Series A funding round led by ParaFi and Greenfield Capital, with participation from Electric Capital, Lattice, Immutable, Tioga, LeadBlock, Amber, and others. Adding previously undisclosed strategic funding of $3.7 million raised in 2022 and $2.5 million raised in 2021, Layer3 has now secured a total of $21.2 million in funding.
Strong funding provides ample confidence for Layer3 to realize its future blueprint, while a pragmatic and long-term oriented team offers a solid and robust framework, supporting Layer3’s steady progress toward the future.
Moreover, all founding team members graduated from world-renowned universities and bring rich experience in their respective fields.
Co-founder & CEO Dariya Khojasteh
Dariya Khojasteh, co-founder and CEO of Layer3, graduated from the University of Southern California. The knowledge and skills accumulated during university laid a solid foundation for his entrepreneurial journey. Dariya plays a key leadership role in shaping the company's strategic direction.
Co-founder Brandon Kumar
Brandon Kumar graduated from George Washington University, where he gained extensive knowledge and practical experience in investment and finance. Prior to founding Layer3, he served as Vice President at Accolade Partners, responsible for investment and strategic decisions. His academic and professional background provides critical support for Layer3’s success.
Engineering Lead Peter Ng
Peter Ng, Engineering Lead at Layer3, graduated from Columbia University in the United States and previously served as CTO at Mojito.
Double Burn + Triple Staking: A sophisticated token economic model
Having discussed Layer3’s innovative on-chain identity and distribution methods, when it comes to concrete value distribution, the tokenomics model is undoubtedly a pivotal component. As shown in the official whitepaper, Layer3’s token economics introduces numerous novel paradigms.
The total supply of Layer3’s $L3 token is 3,333,333,333, with 51% allocated to community airdrops. The brilliance of the token model lies in its innovative mechanism combining double burn + triple staking to promote deflation, resist inflation, and sustain positive token development.
Double Burn for Deflation
Layer3’s double burn mechanism caters to both sides of platform users:
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Project community entry ticket
Project communities must purchase and burn a certain amount of $L3 tokens to publish tasks, set incentives, and issue CUBE credentials via the Layer3 platform protocol. Communities can also vote to decide whether protocol revenue should be used to repurchase and burn $L3 tokens for participants.
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Individual user upgrade privileges
Users can burn $L3 tokens to gain privileged access within Layer3 partner projects, such as early access, token discounts, or exclusive NFTs and other tiered reward benefits.
Through this B-side entry fee + C-side VIP model of burning tokens for privileges, Layer3 establishes a rational burn mechanism to drive future deflation. Combined with anticipated protocol revenue buybacks, Layer3 addresses real user demand from both ends, positively leveraging genuine needs.
Triple Staking to Resist Inflation
Beyond the innovative deflation mechanism, Layer3 also introduces an innovative tiered staking model to combat inflation.
First layer: Standard yield from staking $L3 and governance rights conferred by the token. Governance procedures are detailed in the protocol governance section of the whitepaper;
Second layer: Staking $L3 grants rewards in partner project tokens, exclusive tasks, and incentive programs—including but not limited to early access to new projects, special airdrops, and unique incentive plans—unlocking different reward tiers based on the amount of $L3 staked;
Third layer of staking: Users who complete a certain number of tasks receive multiplier bonuses for future airdrops. For example, users completing 10 tasks may receive 1.5x $L3 rewards, while those completing 20 tasks may receive 2x rewards.
Through this tiered staking model, stakers’ returns are no longer entirely tied to TVL. Active participation in Layer3 activities maximizes user returns, allowing ordinary users to escape the staking Matthew effect and gain fair earning opportunities.
Through the triple staking model and dual burn mechanism, the protocol can lock up large amounts of $L3 tokens while driving sustained token deflation, promoting stable price appreciation.
Additionally, Layer3’s unique product features allow its ecosystem tokens to capture more attention and external value (e.g., partner project tokens). Thus, the $L3 token economy no longer relies on zero-sum games among internal token holders but sustains internal ecosystem operations by continuously capturing external value, ultimately achieving a sustainable development model with positive flywheel effects.
Conclusion
Layer3 entered the market as a task platform, using its "project aggregation" feature to serve both user sides. It not only aggregates cross-chain ecosystems for end users, eliminating the complexity of individual on-chain exploration and reducing interaction time costs, but also successfully concentrates scattered market attention for project communities (B-side), guiding on-chain users toward centralized interactions and precisely fulfilling dual-sided demands.
Its efficient token distribution mechanism and sophisticated tokenomics model continuously capture attention within and beyond the platform, positioning Layer3 as a potential central hub for unleashing the flywheel of the crypto attention economy, opening up a promising future for the attention economy.
Learn more:
Layer3 project website:
Layer3 official Twitter:
Layer3 official whitepaper:
https://help.layer3.xyz/onboarding
Layer3 Foundation:
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