How to view the decentralized attention commodification cryptocurrency protocol Layer3?
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How to view the decentralized attention commodification cryptocurrency protocol Layer3?
Web3 bounty platforms are essentially in the business of traffic. Maximizing the expansion of the traffic pool is the foundation upon which all positive flywheels turn.
Navigating Web3 tides with focused insightsAuthor: Haotian
What is the best way to understand Layer3, a decentralized attention monetization protocol built on cryptography? Specifically, Layer3 aims to become a bounty-matching platform for Web3 by leveraging a unique tokenomics model based on Staking and Burning—enabling the definition of cross-chain user engagement (attention) and project-driven incentive token distribution mechanisms (monetization). It belongs to the same Web3 traffic aggregation and distribution category as Galaxy and RabbitHole. Here’s my take:
1) Most people are confused about why a Web3 traffic distribution platform would be named Layer3, which conflicts with the existing concept of Layer3 as an application layer built atop Layer2 stacks, leading to ambiguity.
Additionally, the term "decentralized attention monetization protocol" can also be difficult to grasp. However, if we interpret “layer” as a higher-level “entry point,” where attention equates to “traffic,” then Layer3’s goal—to serve as a centralized hub for aggregating and distributing massive traffic across L1s and L2s—becomes much clearer through its name.
2) Recently, the airdrop market has become particularly sensitive. Some Web3 bounty platforms have been criticized as tools helping projects manipulate users. Yet it may be unfair to fully blame these platforms for projects’ struggles against Sybil attacks.
The core mission of Web3 bounty platforms is to bring in quality projects and match them with a group of early, genuinely active users. On one hand, they help promising projects reach the right early audience and avoid being overwhelmed by bots; on the other, they ensure that truly active users receive fair early rewards.
The controversy arises when there's a misalignment between what project teams are willing to offer (“concessions”) and what users demand (“entitlements”). How can this be improved? Layer3 addresses this from the user side by building a foundational, fair, and efficient mechanism for tracking on-chain behavior and distributing assets.
Specifically, Layer3 constructs a cross-chain identity and distribution protocol, aggregating a single user’s activities across multiple cross-chain environments and complex dApps into a unified on-chain identity view.
Based on this holistic identity view, Layer3 can generate detailed user profiles over time, enabling projects to identify truly valuable “early users.” With this unified view, Layer3 can systematically distribute tokens according to criteria such as on-chain activity, CUBE credentials, social graphs, and task participation.
3) Still, this alone isn’t enough to differentiate Layer3 from other bounty platforms. To stand out, Layer3 has designed a Staking + Deflationary Tokenomics model. How does it work?
1. Four-year lock-up period: Tokens allocated to core contributors, investors, and advisors are locked for four years, with no unlocking during the first year;
2. Tiered staking mechanism: Users must passively stake to earn basic rewards and governance rights, but can also actively earn additional tokens by completing tasks—effectively combining guaranteed base returns with dynamic commissions. This reduces backlash from feeling exploited ("PUA’d") while upholding the principle of “more work, more rewards.” The depth of staking and activity serves as a measurable metric within the Layer3 ecosystem, unlocking rewards, extra benefits, and special privileges;
3. Burn mechanism: The total supply of Layer3 is fixed at 3.33 billion, and both users and projects are encouraged to burn tokens. Users burning L3 gain greater privileges within partner ecosystems, while projects must purchase and burn L3 tokens to gain increased traffic allocation rights.
Over time, this creates a cycle: users seek greater privileges via airdrops → profit potential attracts more users → larger traffic volume draws in more projects → users and projects continuously burn tokens for privileges → the value of L3 tokens gains upward momentum → more users and projects join. Ideally, this forms a positive flywheel effect—a self-reinforcing token incentive model.
In summary, unlike some Web3 bounty platforms that explicitly state they won’t issue tokens or guarantee user returns, Layer3 clearly intends to solve Web3 problems with Web3-native solutions. Since disputes around fair token distribution are the most intense, Layer3 designs a high-barrier-to-entry model (requiring staking) combined with a dynamically balanced economy featuring a burn mechanism.
In my view, Web3 bounty platforms are essentially in the traffic business. Maximizing the size of the traffic pool is the foundation upon which any positive flywheel turns. Achieving this requires long-term growth strategies and leveraging an internal staking-and-burn mechanism to drive token value appreciation—results will only become evident over time.
Throughout this process, data growth will act as a mirror, directly reflecting how effectively the tokenomics are implemented, while value assessment will follow clear, linear standards.
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Haotian | CryptoInsight
