Question: What is L3 (Layer3) and what is the token used for?

Answer: L3 is the token of the Layer3 ecosystem, linked to campaigns/quests and onchain activity. It is used in participation and governance mechanisms (including staking and voting) and may also be used in future protocol functions as governance and the product evolve.

Question: Where does demand for the L3 token come from?

Answer: The main sources of demand are participation in the ecosystem (campaigns, access to features, potential privileges), staking/governance, and market demand from traders. Note that the link between platform growth and token demand is not always direct and depends on which functions are actually tied to L3.

Question: Does L3 provide “revenue sharing” or a guaranteed token buyback?

Answer: There is typically no guaranteed “dividend” model or automatic revenue distribution to the token. Use of protocol revenue is determined by rules and decisions of governance structures/the foundation, so token value accrual depends on adopted policies.

Question: Why can the price of L3 fluctuate a lot?

Answer: Price is driven by market cycles, liquidity and trading volumes, expectations around product development, and unlock/emission schedules. In high-volatility periods, the token can move more sharply than the broader market, especially with limited market depth.

Question: What is an unlock and why does it matter for L3?

Answer: An unlock is the gradual release of previously allocated tokens (e.g., to the team/investors/community pools). When unlocks start or accelerate, market supply increases, which can raise selling pressure if demand is insufficient.

Question: How is governance participation connected to L3 staking?

Answer: Governance models often use staking and vote delegation to participate in decision-making. If there is a staking threshold or staker privileges, it can increase the influence of large holders and reduce accessibility for smaller participants.

Question: Is L3 suitable for long-term holding?

Answer: L3 is a high-risk asset: its performance depends on roadmap execution, token-economic decisions, and market conditions. For long-term holding, it is important to assess tokenomics, the unlock schedule, real utility and governance transparency, and to diversify risk.

What is Layer3 (L3)

L3 is the utility and governance token of the Layer3 ecosystem (an omnichain infrastructure for distribution/identity/incentives). It is used for staking (Layered Staking), participating in governance, and accessing the protocol (including publishing quests, launching incentive campaigns, and accessing the CUBE credential network).

Launch 30.07.2024 Multi-chain

Who created it

Dariya Khojasteh, Brandon Kumar (co-founders).

Why it was created

To create an “attention layer” and infrastructure for onchain distribution/identity/incentives: to unify user activity across networks, measure contribution (CUBEs/credentials), and efficiently distribute rewards/incentives; the L3 token is used for protocol access and ecosystem governance.

How it’s used

L3 staking (Layered Staking): passive rewards and access to additional utility/perks
Participation in governance (voting on ecosystem decisions and parameters)
Protocol access: publishing quests, launching incentive campaigns, access to the CUBE credential network
Burn/stake mechanics (proposed): buy & burn or burn/stake requirements to access specific protocol features
Earning partner rewards/incentives for activity (multipliers/incentives for active participants)

Risks

Token value depends on Layer3 Foundation decisions on how protocol revenue is used (value accrual is not hardwired)
Early-stage governance centralisation (Protocol Council) and a 50,000 L3 staked threshold increase the risk of influence by large holders
Strong unlock pressure after the cliff: sizeable allocations to Core Contributors and Investors can create prolonged selling pressure
Community emissions/distributions also increase supply and can weigh on price if demand is weak
The quest-marketing model is exposed to “airdrop fatigue”: falling interest in quests reduces demand for campaigns and token utility
Weak linkage “platform growth → token demand growth”: utility may be replaceable/non-essential for users and projects
Reputational risk from disputed campaign/quest rules and user dissatisfaction with distributions and support
Risk of liquidity/volume manipulation in the token market (common in small/mid caps), increasing volatility
Regulatory risk around incentive mechanisms (incentives/drops/promo), which can hit scaling and partnerships
Dependency on partners and their budgets: if projects cut marketing spend, platform revenue and activity decline

FAQ

Question: What is L3 (Layer3) and what is the token used for?: Answer: L3 is the token of the Layer3 ecosystem, linked to campaigns/quests and onchain activity. It is used in participation and governance mechanisms (including staking and voting) and may also be used in future protocol functions as governance and the product evolve.
Question: Where does demand for the L3 token come from?: Answer: The main sources of demand are participation in the ecosystem (campaigns, access to features, potential privileges), staking/governance, and market demand from traders. Note that the link between platform growth and token demand is not always direct and depends on which functions are actually tied to L3.
Question: Does L3 provide “revenue sharing” or a guaranteed token buyback?: Answer: There is typically no guaranteed “dividend” model or automatic revenue distribution to the token. Use of protocol revenue is determined by rules and decisions of governance structures/the foundation, so token value accrual depends on adopted policies.
Question: Why can the price of L3 fluctuate a lot?: Answer: Price is driven by market cycles, liquidity and trading volumes, expectations around product development, and unlock/emission schedules. In high-volatility periods, the token can move more sharply than the broader market, especially with limited market depth.
Question: What is an unlock and why does it matter for L3?: Answer: An unlock is the gradual release of previously allocated tokens (e.g., to the team/investors/community pools). When unlocks start or accelerate, market supply increases, which can raise selling pressure if demand is insufficient.
Question: How is governance participation connected to L3 staking?: Answer: Governance models often use staking and vote delegation to participate in decision-making. If there is a staking threshold or staker privileges, it can increase the influence of large holders and reduce accessibility for smaller participants.
Question: Is L3 suitable for long-term holding?: Answer: L3 is a high-risk asset: its performance depends on roadmap execution, token-economic decisions, and market conditions. For long-term holding, it is important to assess tokenomics, the unlock schedule, real utility and governance transparency, and to diversify risk.