What is Layer3 (L3)?

Deep Dive

1. Governance & Decentralization

L3 serves as the governance token for the Layer3 protocol, enabling holders to vote on key upgrades, treasury allocations, and incentive programs. Governance follows a phased approach:
- A Protocol Council (selected long-term token holders and contributors) initially guides proposals and framework design.
- Users must stake 50,000+ L3 to participate, ensuring alignment with network success (Governance docs).

This hybrid model balances decentralization with structured oversight during early development.

2. Multichain Wallet & Use Cases

The Layer3 Wallet supports seamless cross-chain swaps (e.g., Ethereum, Base, Arbitrum) without bridges, processing 3M+ transactions by July 2025. Key utilities include:
- Quest deployment: Projects burn L3 to create incentivized campaigns (e.g., Mezo Network’s testnet onboarding).
- Staking: 7.7M+ L3 locked to access the Layer3 Builder toolkit for dApp development (X post).
- Liquidity integrations: Partnerships like ArrakisFinance optimize DEX liquidity across chains.

3. Onchain Analytics via Layer3 Signal

This proprietary index measures protocol relevance using:
- 3M+ fee-paying users
- 200M+ attributed transactions
- Engagement metrics (unique participants vs. activations)
Projects use Signal to benchmark traction, while investors leverage it to identify emerging ecosystems (X post).

Conclusion

Layer3 combines governance, multichain infrastructure, and verifiable engagement metrics to position L3 as both a decision-making tool and ecosystem fuel. As cross-chain activity grows, can Layer3’s phased decentralization model maintain agility while scaling trustlessly?