Layer3: Transforming User Engagement with Blockchain-Powered Quests

Capturing and monetizing the multibillion-dollar attention economy of the digital space remains a challenge. Layer3’s platform tackles this by gamifying crypto education and incentivizing user engagement through Quests. This article explores how Layer3 leverages blockchain to create a market for attention, empowering users with rewards like tokens, NFTs, and more. We delve into its protocols, tokenomics, and potential as a leader in the evolving web3 ecosystem.

What is Layer3?

Layer3 is a protocol designed to monetize the internet’s attention economy by creating a market for attention driven by unique identity and incentives infrastructure. Founded in 2021 by Dariya Khojasteh and Brandon Kumar, Layer3 aims to simplify the blockchain-based internet and make it more accessible to a wider audience.

To achieve this, Layer3 offers bite-sized lessons known as Quests, on topics like NFTs and smart contracts. Its tools enable integration into other platforms, helping them run loyalty programs. The platform currently boasts 1 million active users and has established partnerships with notable entities like Coinbase and Uniswap. Demonstrating its potential and earning investor confidence, Layer3 successfully raised $21.2 million for its growth and development.

The Layer3 Foundation’s vision is to power identity and earning infrastructure globally, for both humans and AI agents, as the world shifts toward token-based distribution models. Its objectives are as follows:

• Unlock the $1T attention economy: Layer3 seeks to unlock a market potential estimated at over $1 trillion by establishing a liquid market for the internet's most precious commodity, that is attention.
• Global identity and earning infrastructure: Layer3 aims to create a robust infrastructure that facilitates secure and verifiable identities and provides equitable earning opportunities for both humans and AI agents globally.

How it Works 

Layer3 provides a set of protocols that enable token distribution, identity verification, and incentive mechanisms across multiple blockchain networks, all governed by a community-driven foundation. Its protocols and products are designed to function across different blockchain networks, creating an omni chain infrastructure for seamless interactions and integrations with various ecosystems.

The core protocols of Layer3 focus on three main aspects:

• Distribution: Enables the distribution of tokens across different blockchain networks.
• Identity: Provides omnichain identity credentials with CUBEs.
• Incentives: Rewards participation and engagement within the ecosystem.

The primary vehicle Layer3 relies on to drive attention and distribution is the Quest platform. Quests in Layer3 are designed as bite-sized, interactive experiences where users perform a series of actions in exchange for rewards. These Quests combine educational content with practical actions, ensuring users are both learning and actively participating in the ecosystem.

Layer3's Features

Explore

The Explore feature allows users to seamlessly explore and interact with various crypto platforms. This feature provides a user-friendly interface that helps users navigate through different chains, wallets, applications, and assets. It ensures that users can discover new opportunities and understand the different aspects of the crypto ecosystem without any complexity.

Trade

Layer3 offers a seamless trading interface that enables users to connect their wallets and trade various cryptocurrencies across diverse chains. The Trade feature is designed to provide a smooth and integrated trading experience, allowing users to manage their assets and identities in the crypto space efficiently. This omnichain approach ensures that users have a comprehensive and fluid experience while trading.

Bridge

The Bridge feature of Layer3 provides a streamlined bridge aggregation service. This service allows users to transfer assets between different blockchain networks effortlessly. By simplifying the bridging process, Layer3 ensures that users can move their assets without worrying about the technical intricacies involved in cross-chain transfers.

Rewards

Layer3 offers multiple ways for users to earn rewards and engage with the platform. Users can earn additional rewards through LAYER tokens and perpetual redeemable points for all activities. Customizable boosters are available to reduce fees and enhance points accumulation. 

The platform also features a daily leaderboard and Quests, encouraging users to progress, complete tasks, and earn points in a competitive and rewarding environment. Additionally, a community airdrop is planned for summer 2024, providing further incentives for user participation.

L3 Tokenomics

Layer3 creates a global liquid market for attention, turning it into currency. The L3 tokenomics are based on a total supply of 3,333,333,333 L3 tokens, burn mechanisms where communities must buy and burn L3 tokens to access the Layer3 protocol, and a staking mechanism known as Layered Staking with three layers of rewards: passive staking rewards, actively earning other tokens, and increased protocol utility. 

By staking on Layer3, users can earn passive yield (L3) proportional to the amount staked and additional rewards through Layered Staking. This mechanism aligns token holders with deeper ecosystem engagement, fostering long-term engagement and community growth.

The L3 token distribution is structured as follows:

• Community: 51% (1.69 billion L3) is reserved for the community over a 4-year period, with 40% in year 1, 30% in year 2, 20% in year 3, and 10% in year 4.
• OG & S1 Airdrop: 200,000,000 L3 (6%) is allocated for the OG & S1 airdrop.
• S2 Allocation: 50,000,000 (1.5%) is allocated for the S2 allocation, all of which are unlocked at TGE.
• Foundation Allocation: 25% is allocated by the Foundation to planned airdrops and incentives.
• DAO and Foundation Governance: The remaining 26% is governed by the DAO and Foundation for future airdrops, incentives, and ecosystem initiatives.
• Core Contributors: 25.3% (843 million L3), subject to a 4-year lockup period, with tokens being gradually released starting in the second year.
• Investors: 23.2% (773 million L3), subject to a 4-year lockup period, with tokens being gradually released starting in the second year.
• Advisors: 0.5% (16 million L3), subject to a 4-year lockup period, with tokens being gradually released starting in the second year.

Team and Investors

Layer3 was created by a talented and diverse team of innovators passionate about making the crypto experience simpler and more engaging for users. The team is led by Dariya Khojasteh, the Co-Founder and CEO, and Brandon Kumar, the Co-Founder and COO. Their leadership is complemented by Yahya El Asmar, the Product Manager, and Ehsan Abbaszadeh, the Head of Growth.

Layer3 has successfully raised funds three times:

• Pre-Seed: On September 30, 2021, Layer3 raised $2.50 million. The investors included ParaFi Capital (Lead), Balaji Srinivasan, Electric Capital, 6th Man Ventures, Lattice, and Kain Warwick.
• Seed: On March 1, 2022, Layer3 raised $3.70 million. The investors included ParaFi Capital, Electric Capital, Sandeep Nailwal, Lattice, and Third Prime.
• Series A: On June 12, 2024, Layer3 raised $15.00 million. The investors included ParaFi Capital (Lead), Greenfield Capital (Lead), Electric Capital, Amber Group, Immutable, and Lattice.

Conclusion

Layer3 stands out as a pioneer in monetizing the internet’s attention economy through its innovative Quest platform, robust identity verification, and incentive mechanisms. With a strong vision, strategic partnerships, and an active user base, Layer3 is well-positioned to become a leader in the evolving web3 ecosystem. The upcoming L3 token launch and global expansion plans further solidify its potential for growth and influence in the blockchain space.